Should I pay off these pesky credit cards???

[CRABBY JERRY]

The cards are 3.9, 4.9 and a 6.9 that has no balance.The balances are on the first two and thats why I'm reluctant to pull money from my funds to pay them. I realize that there are no guarantees in the market so this is why I will probably zero them out.Thanks for the responces and I didn't mean to hijack the original poster.

 

[thefed]

i guess i should've re-worded this thread to say "WHY DONT I WANNA pay off these pesky credit cards..."


Perhaps the answer to that question is that your focus is too narrow. Instead of focusing on the balance of a single account you need to look at the big picture. Learn to see the account as part of the whole - that is your net worth statement. By paying off the credit card debt your net worth will not be negativly impacted short term and will fare better long term .

eh, yeah im the air duct guy. i also have a fw rentals which are finally cashflowing nicely...woohooo....just rented the last one out!!!

i know/knew the answer to my question, but that mental block is a muther!

i just paid off 5k of the 6k and threw the rest in the bank. thats the best i could do...lol

i do need a nice cushion for lots of things...carrying 4 properties, duct business, household expenses, kid/wife/cars etc. but i guess most can go on a cc in the event of a real breakdown in finances.

on a good note, the duct business is really doing well, as im in the middle of what appears to be one of my top 3 months ever....and a month that is already at 300% of last january ....16 days into the month!! plus i finally got a 'normal' person to rent out my last property...gotta love the passive income

 

[SteveR]

I guess I will take a differnet path on this one because you are talking about a business expense and not just a personal expense.

Why not keep your books and your money in different accounts? Have a business checking account and MM account. Have a business CC.
Keep your "personal" and business money and expenses in differnet buckets and use only the business buckets for expenses and income to the business and only the personal ones for non-business use.

You can pay yourself a salary as you have the funds to do so in your business account. Just transfer some $$ from the business account to your personal account once you have more than your magic number of $$$ in your business accounts. Maybe this will help you reach your goals and keep your books "clean" for tax purposes. Business debt is not a bad thing since it creates additional tax advantages while freeing up cash to expand the business.

Just my two cents.

 

[thefed]

I guess I will take a differnet path on this one because you are talking about a business expense and not just a personal expense.

Why not keep your books and your money in different accounts? Have a business checking account and MM account. Have a business CC.
Keep your "personal" and business money and expenses in differnet buckets and use only the business buckets for expenses and income to the business and only the personal ones for non-business use.

You can pay yourself a salary as you have the funds to do so in your business account. Just transfer some $$ from the business account to your personal account once you have more than your magic number of $$$ in your business accounts. Maybe this will help you reach your goals and keep your books "clean" for tax purposes. Business debt is not a bad thing since it creates additional tax advantages while freeing up cash to expand the business.

Just my two cents.

i do have a business checking and cc, but i find it tough to keep the two separated. ironically the business checking is the one with the extra $$ in it i described earlier. i dont put all the $$ in business checking thouhg, as i dont complain when a customer or three writes a check to ME, not the business...


im working on a new method however to keep the books. im very set in my ways for some odd reason

 

[thefed]

well, i paid them all off.....then a few days ago i got __ this close to making a deal on another investment property. i REAALLY would've liked the extra 6k in cash for the purchase of the property...but, oh well....the deal fell thru anyhow
...it had an easy 40k in equity after repairs, and only would've cost me 45k (someone snatched it up the morning before i put in my offer, same price!)

 

[dex]

well, i paid them all off.....then a few days ago i got __ this close to making a deal on another investment property. i REAALLY would've liked the extra 6k in cash for the purchase of the property...but, oh well....the deal fell thru anyhow
...it had an easy 40k in equity after repairs, and only would've cost me 45k (someone snatched it up the morning before i put in my offer, same price!)

Where do you live that homes cost in this area?

 

[cute fuzzy bunny]

What would have stopped you from taking a cash advance on the cards or using them to pay a bunch of other bills...freeing the cash from that to use in the deal?

 

[2B]

Where do you live that homes cost in this area?

It could be almost anywhere except the west coast and the northeast.

 

[cute fuzzy bunny]

Where do you live that homes cost in this area?

The homes in John Galts neighborhood traditionally sell in the mid-40's all the way up to 100k. With front row seats to a flood basin riverfront lots!

 

[Nords]

Where do you live that homes cost in this area?

IIRC correctly thefed is dealing in Ohio.

I'm jealous-- he's an order of magnitude below Hawaii prices.

 

[bssc]

You could buy a house in my wife's hometown of Rudyard, MT for anywhere from $10K to $30K max.

 

[Nords]

You could buy a house in my wife's hometown of Rudyard, MT for anywhere from $10K to $30K max.

OK, I'm jealous, but not enough to want to live in one of those states!

 

[cute fuzzy bunny]

I try to avoid square and rectangular states with no squiggly parts. Direct correlation between those and low real estate returns.

 

[HFWR]

Shhhh... don't give away the Trump Kiyosucky secret real estate formula...

 

[cute fuzzy bunny]

Crap...you mean I could have written a book and made money off of this sage observation?

AUGH!

 

[justin]

You can find plenty of $30k houses here in Raleigh. Caution: kevlar vests not included in purchase price. Not that I would live in any of them...

 

[bssc]

Crap...you mean I could have written a book and made money off of this sage observation?

AUGH!

It's not too late. Let us know when you will be on CNBC with Maria pushing your book.

 

[Moemg]

It could be almost anywhere except the west coast and the northeast.

Or the coastlines of Florida !

 

[cute fuzzy bunny]

It's not too late. Let us know when you will be on CNBC with Maria pushing your book.

I'd rather be pushing...huh? Wha? Oh sorry, I've just been informed that this forum is rated "G"...

 

[SLC Tortfeasor]

elementary

The power of compound interest is an amazing thing...
but only if one is on the right side of the equation

Well, it's amazing no matter which side of the equation you're on. But on one side it's amazingly good, while on the other side it's amazingly bad.

 

[bssc]

Well, it's amazing no matter which side of the equation you're on. But on one side it's amazingly good, while on the other side it's amazingly bad.

I work for a credit card company. On one side, it is amazingly good when I pay my balance off in full since I get cash back. On the other side, it is amazing good when people pay interest because that adds to our company's revenue stream.