Author Topic: How to approach paying off visa bill? Emotion vs. Finance?  (Read 2637 times)

lifejoy

  • Magnum Stache
  • ******
  • Posts: 3969
  • Age: 31
  • Location: Canada, eh
  • Lovin' the Mustachian life!
    • Not Buying This
How to approach paying off visa bill? Emotion vs. Finance?
« on: July 31, 2014, 03:01:35 PM »
My fiancÚ and I have just combined our assets and we are debating how to pay our joint credit card bill. We decided to outsource the question- so give us your thoughts!

Option 1: Pay entire visa balance in full. One of us believes that this method has psychological benefits of not carrying forward any debt. Also, with no accessible savings, this method makes it easier to budget.

Option 2: Pay only the statement balance for that month. The remaining balance gets carried forward, but no interest fees. One of us prefers this method because we can use the excess money to pay down our line of credit, and save on interest payments for that month.

Note: the difference between us choosing option 1 or option 2 would be about $10, but we want to come to a decision we are both comfortable with so that we can proceed that way in the future.

Eric

  • Magnum Stache
  • ******
  • Posts: 4061
  • Location: On my bike
Re: How to approach paying off visa bill? Emotion vs. Finance?
« Reply #1 on: July 31, 2014, 03:06:45 PM »
Option 2 -- pay what's due when it's due, but not before. 

Cheddar Stacker

  • Magnum Stache
  • ******
  • Posts: 3714
  • Age: 41
  • Location: USA
Re: How to approach paying off visa bill? Emotion vs. Finance?
« Reply #2 on: July 31, 2014, 03:15:09 PM »
Ironic that the difference is $10 since it's time to start getting excited about ten bucks again.

My first reaction was it's not worth the hassle for 10 bucks, then I remembered that post and punched myself in the face.
Do whatever saves you $10/month which I assume is option 2? It will take you maybe 5 minutes of time to do the more complicated thing, so that's $120/hour pay, tax free.

lifejoy

  • Magnum Stache
  • ******
  • Posts: 3969
  • Age: 31
  • Location: Canada, eh
  • Lovin' the Mustachian life!
    • Not Buying This
Re: How to approach paying off visa bill? Emotion vs. Finance?
« Reply #3 on: July 31, 2014, 03:17:40 PM »

Ironic that the difference is $10 since it's time to start getting excited about ten bucks again.

My first reaction was it's not worth the hassle for 10 bucks, then I remembered that post and punched myself in the face.
Do whatever saves you $10/month which I assume is option 2? It will take you maybe 5 minutes of time to do the more complicated thing, so that's $120/hour pay, tax free.

Lol, we referenced that post to each other! $10 matters!

Cheddar Stacker

  • Magnum Stache
  • ******
  • Posts: 3714
  • Age: 41
  • Location: USA
Re: How to approach paying off visa bill? Emotion vs. Finance?
« Reply #4 on: July 31, 2014, 03:19:32 PM »

Ironic that the difference is $10 since it's time to start getting excited about ten bucks again.

My first reaction was it's not worth the hassle for 10 bucks, then I remembered that post and punched myself in the face.
Do whatever saves you $10/month which I assume is option 2? It will take you maybe 5 minutes of time to do the more complicated thing, so that's $120/hour pay, tax free.

Lol, we referenced that post to each other! $10 matters!

Word!

SDREMNGR

  • Bristles
  • ***
  • Posts: 324
Re: How to approach paying off visa bill? Emotion vs. Finance?
« Reply #5 on: July 31, 2014, 08:29:13 PM »
Option 2.  Pay when due.  Set to auto pay statement balance so you don't forget but review statements. 

No need to pay anyone before the money is due.  It's called float and banks and financial institutions make billions on holding on to your money for a little while and making interest off of it.  Do the reverse to them!

lifejoy

  • Magnum Stache
  • ******
  • Posts: 3969
  • Age: 31
  • Location: Canada, eh
  • Lovin' the Mustachian life!
    • Not Buying This
Re: How to approach paying off visa bill? Emotion vs. Finance?
« Reply #6 on: July 31, 2014, 10:09:32 PM »

Option 2.  Pay when due.  Set to auto pay statement balance so you don't forget but review statements. 

No need to pay anyone before the money is due.  It's called float and banks and financial institutions make billions on holding on to your money for a little while and making interest off of it.  Do the reverse to them!

Thanks!