Originally posted by: Sysadmin
I take it your are not an economics major
Sysadmin
One of the worst financial mistakes possible would be to carry a CC debt. You've already made that mistake and you are probably losing hundreds a year in interest - money that is completely wasted. You have the chance to end (or at least lessen) the bleeding, so pay off the CC now. Take the money you save in interest and blow that. You can have the best of both worlds.Originally posted by: Viper GTS
Definitely pay off the CC.
Viper GTS
Originally posted by: conjur
90/10
Pay off a lot but save enough for the :beer: you'll need to drown your sorrows in after UK loses the next few games!
Who the hell would take a credit card with 19% interest? You deserve every ounce of pain you get just for accepting the card.Originally posted by: dullard
One of the worst financial mistakes possible would be to carry a CC debt. You've already made that mistake and you are probably losing hundreds a year in interest - money that is completely wasted. You have the chance to end (or at least lessen) the bleeding, so pay off the CC now. Take the money you save in interest and blow that. You can have the best of both worlds.Originally posted by: Viper GTS
Definitely pay off the CC.
Viper GTS
Lets assume you pay 19% interest (average for the year to keep the math simple). $800 * 0.19 = $152.
So your two extreme choices are:
(a) get $800 of stuff now and have $952 debt in one year, or
(b) get $0 stuff now and have about $0 debt, then wait a year blow it and get $952 worth of stuff just to be even with case #1.
$800 of stuff or $952 of stuff... I choose the $952.
He never stated any information. Many cards are moving up in interest. And with all cards, if you ever get one payment late then your rate is automatically about 19%. So without any information, that is often the best estimate of the rate someone who misuses a CC is paying. You can provide any number you want - my point is the same. Take 10% for example. In one year would you rather have $800 worth of 1 year old stuff or $880 worth of brand new stuff? I'd still take the $880 of new stuff. My point doesn't change.Originally posted by: SampSon
Who the hell would take a credit card with 19% interest? You deserve every ounce of pain you get just for accepting the card.
What if that item changes in a year, and the price gets raised up? What about inflation? What about the consistant falling value of the dollar?
It's not like hes carrying thousands of dollars worth of debt.
Originally posted by: dullard
He never stated any information. Many cards are moving up in interest. And with all cards, if you ever get one payment late then your rate is automatically about 19%. So without any information, that is often the best estimate of the rate someone who misuses a CC is paying. You can provide any number you want - my point is the same. Take 10% for example. In one year would you rather have $800 worth of 1 year old stuff or $880 worth of brand new stuff? I'd still take the $880 of new stuff. My point doesn't change.Originally posted by: SampSon
Who the hell would take a credit card with 19% interest? You deserve every ounce of pain you get just for accepting the card.
What if that item changes in a year, and the price gets raised up? What about inflation? What about the consistant falling value of the dollar?
It's not like hes carrying thousands of dollars worth of debt.
Inflation currently is nearly non-existant. CC interest takes inflation into account anyways (it is always a base rate + the going rate that is proportional to inflation). So CC interest will be higher than inflation. Plus for an electronics board, most of what we buy deflates drastically in price, it rarely inflates.
In some cases, yes it could be a temporary necessary evil (although a loan is usually a better option). It just doesn't sound from his posts like this is a time for necessary evil.Originally posted by: SampSon
That is assuming he holds a balance for a year. Which also takes into account, as you said, that he is using the credit card improperly.
Now I understand where you are going with the whole "800 now or 880 later", but that's way too simplified.
Usually it's worth 80 bucks to have it now, rather than wait a year. In that year, the stuff (products) will have changed, and typically progressed.
So you can have the new technology or whatever you buy now or you can have old technology a year down the line, with a menial amount of "savings" in interest cost. On top of the fact that a year from now, you are probably going to want the new thing that came out then, not a year old piece that was in its prime before.
Though, I do agree with you in general about holding a credit card balance. Though sometimes it's a necessary evil.
Originally posted by: Dacalo
Pay off.
Why pay interest if you can pay it all off.
Originally posted by: Chiropteran
Pay off the credit card.
Then to celebrate, buy yourself something nice. Just charge it if you don't have cash.
Originally posted by: paulee
Originally posted by: Sysadmin
I take it your are not an economics major
Sysadmin
I take it you're not an English major