Paying Off Credit Card Bills?

Discussion in Credit Cards started by SLTE • Sep 7, 2015.

  1. SLTE

    SLTEActive Member

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    When I first got a credit card I would pay my debt off immediately, because I hate the thought of being in debt to anyone. A decade later, though, with regular bills and whatnot, I find myself waiting at least a few weeks, and going close to the end time, before I bother to pay off the debt. I think part of it's laziness, but I'm sure there's some innate strategy involved.

    How about the rest of you? Do you pay off your credit card bills immediately? Do you wait until the last possible minute? Or do you strategically pay them off throughout the month?
     
  2. Rosyrain

    RosyrainActive Member

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    I used to wait for the last minute to pay them, but now thanks to online bill pay, I can pay portions of the balance throughout the month. If I have $20 or $50 in spare money, I apply it to the credit card debt. You are supposed to only use up to 50% of your card at all times to keep your credit score up.
     
  3. Onionman

    OnionmanActive Member

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    I have an automatic payment that comes out of my main bank account and sweeps across to my credit card account. That way I don't have to think about it or try to remember it at all.

    I wasn't aware of the concept of using up to 50% of your card at all times to keep your credit score up. I guess one way of making sure that you always do might be to adjust your credit card limit to make sure that it aligns with your spending and this principle.
     
  4. Rosyrain

    RosyrainActive Member

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    I am becoming an expert at credit card debt now that I interested in buying a home. I am working with a mortgage lender to try to get an approval and she actually wants to pay down my card to 20% to raise my score a few points very quickly. Luckily my card does not have a huge limit!
     
  5. purplepen88

    purplepen88Active Member

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    I always pay off my card immediately. I don't charge any more on my card than I can afford. Interest rates are crazy on a credit card. If you can't afford to pay off your credit card each month then rather than carry a balance on your card you need to apply for a line of credit and use that to pay off your card. The difference in interest rates in incredibly and will save you a lot of money.
     
  6. Jessi

    Jessi<a href="http://www.quirkycookery.com">QuirkyCooke

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    I try to pay it all off before the bill is due. I don't necessarily rush home and make a payment every time I make a purchase because that's too time consuming for me. I do check in on my finances a few times a week, though, and I'm always aware of how much I'm spending and how much I still owe each month. That helps keep me in check.
     
  7. Corzhens

    CorzhensWell-Known Member

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    I understand that the credit card has a minimum installment that you can avail of. But thinking of the interest that is computed based on the outstanding balance, that would amount to something when take in a duration of 1 year. As much as possible, I pay ALL the balance of my credit card to relieve me of paying interest. I only avail of the convenience of the credit card because it is better to pay with the card than with cash.
     
  8. Lushlala

    LushlalaWell-Known Member

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    The best thing to do is obviously to settle the full amount on the given date, that way you avoid the hefty interest rates. But when I did have a credit card, I never managed to do this. Instead, I set up a direct debit for the minimum fee to come out of my account on the agreed date, to avoid any late payments. Then once I'd paid all my bills and decided I had enough leftover, I'd top up my monthly instalment so that I wasn't just paying the bare minimum. That way if I owed a huge amount, I could pay it off in 2-3 months.
     
  9. Ke Gordon

    Ke GordonWell-Known Member

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    It is better to pay off bills sooner rather than later so the interest doesn't continue to accrue throughout the month. Not saying that I do that, but that is he ideal way, if you do not want to carry a balance. Naturally, the best thing is to not carry a balance, but that is easier said than done.
     
  10. Rosyrain

    RosyrainActive Member

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    It is best to not carry a balance over from one month to the next, but this can be hard to avoid if you have an unexpected expense come up, like your washing machine breaks or something. I am working very hard to pay the balance down on my card to zero because I need my credit score to go up a little so I can get a house.
     
  11. jdwriter

    jdwriterActive Member

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    Unless you carried a balance in previous months, interest doesn't accrue until after the due date. If you have a previous balance on cards, that interest will continue until it is paid off in full.
     
  12. xTinx

    xTinxWell-Known Member

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    I did something really amusing. Although there's no need for me to get a credit card, because I'm quite lazy at withdrawing money and paying my bills, I got one. To prevent any financial damage, however, I had my credit card bills auto-debited from my savings account (which happens to be in the same bank as my credit card provider). So every time I purchase an item using my credit card, a fixed monthly rate will be charged to my savings. Problem solved.
     
  13. luckycharm

    luckycharmActive Member

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    I always payoff my credit card bills on time, at least three days in advance. I set up a reminder in my calendar (in my smartphone) as the deadline is same every month. Once I did the mistake of paying my credit card bills by directly depositing cash offline and that attracted a commission as service fee. When I enquired about that they showed me a clause in their terms and condition statement and I was helpless. I usually pay it online as soon as I get the reminder and I never keep it for the eleventh hour.

    But nowadays I deliberately minimized my credit card usage and instead start using my debit card for both online and offline transactions. That way I can have a better control on my spending habits as there is a limit on my spending quota. In my country defaulting credit card payments would attract huge penalty and fortunately I never had to go through that. It is better to use credit card only in times of emergency.
     
  14. Jamille

    JamilleActive Member

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    I have 3 credit cards. One is dedicated to shopping groceries which I pay off a day before the due date. It doesn't incur interests because it's paid in full. Another card is earmarked for buying fuel because it offers 3% rebate. It doesn't charge interest because I pay the bill in full a day before the due date. The other cards is where I took out a low interest loan to start a small business. My payment for this card comes from my business earnings and it is also paid promptly.
     
  15. tonyb

    tonybActive Member

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    The last credit card I used I always ensured I paid off my debts not comfortable keeping debts I like them cleared as quickly as I can. Right now I do not have a credit card for personally reasons, if I get one again I'm going to keep to clearing every debt I incur as I make purchases with it.
     
  16. Nakitakona

    NakitakonaActive Member

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    I am a person who used to pay any bills as soon as I receive them for I have a bad experience of paying those bills on their due date. It is beyond my control that I had forgotten them. By the way, though I have a debit card which I pay my bill through it, I personally go to the agency or to the agent outlet of those services I am paying. This is for the reason that paying it through a debit or credit card, there is a service fee being charged per payment made. So I prefer to pay it personally to their branches.
     
  17. efrain silva

    efrain silvaMember

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    I personally pay it all off immediately. I just don't like any sort of fee, hidden or unhidden. I like to pay and to pay up front. That way, I don't have to worry about it later or in the present. I feel a sense of relief right after paying, as well.
     
  18. ptahm22

    ptahm22Active Member

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    I always pay it strategically through out the month. I once tried waiting to the end of the month and I was late and had to pay an additional fine. It's better to pay the debt off early when you have the cash to avoid accumulation.
     
  19. Kaushik Angara

    Kaushik AngaraActive Member

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    I have an auto debit enabled on my bank account to pay off my credit card bill. The bank automatically debits my accounts on the last day of bill payment. This makes sure I do not forget to pay the bill and end up paying dues later. As soon as the payment is made, I get an SMS and an email stating that my account has been debited to pay the credit card bill. I feel its the best option.