Should I pay off these pesky credit cards???

[bssc]

No, but then I work for a credit card company and that is one of the ways that we make money.

[CRABBY JERRY]

Thanks Jazz4cash. Thats the way I was thinking but wanted some other thoughts. I guess the problem that gets me in trouble is that the rate is low like my 5% mortgage, and I end up charging more than can be paid off each month and the balance increases more than I would like. We have to seriously stop buying stuff that is not necessary.{mostly me}

[Texas Proud]

Quote:

Originally Posted by CRABBY JERRY Thanks Jazz4cash. Thats the way I was thinking but wanted some other thoughts. I guess the problem that gets me in trouble is that the rate is low like my 5% mortgage, and I end up charging more than can be paid off each month and the balance increases more than I would like. We have to seriously stop buying stuff that is not necessary.{mostly me}

WOW..... you have another problem then...

And I disagree with the other poster.... yes, I would sell and pay it off... how do you know it will earn more over the next year

If you are spending more than you can pay, this is NOT LBYM... you need to get into the habit of ONLY buying things on a CC that you can pay 100% at your next billing cycle..

IMO, anybody who carries a balance (except for a zero interest or very very low) will spend more money than if you paid it off every month... it is a habit... you think about what money you have BEFORE you charge, not when the bill comes in...

[maddythebeagle]

Quote:

Originally Posted by Texas Proud IMO, anybody who carries a balance (except for a zero interest or very very low) will spend more money than if you paid it off every month... it is a habit... you think about what money you have BEFORE you charge, not when the bill comes in...

that brings up another issue...I have a bunch of cards that not only give 0% for balance transfers but also for purchases....you could always keep one or 2 offers current for "emergencies"...I even have one right now going with chase for 15 months...but as noted, dont use credit cards for consumption

[jazz4cash]

Quote:

Originally Posted by CRABBY JERRY Thanks Jazz4cash. Thats the way I was thinking but wanted some other thoughts. I guess the problem that gets me in trouble is that the rate is low like my 5% mortgage, and I end up charging more than can be paid off each month and the balance increases more than I would like. We have to seriously stop buying stuff that is not necessary.{mostly me}

that does sorta change things. As Texas said........thats another problem. If your spending is not under control, it maybe does not matter whether you pay off or not. The low CC interest rate should not influence your spending.......but if you really have changed your spending habits, then I would stand by my previous response.

[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]

Quote:

Originally Posted by GLM 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]

Quote:

Originally Posted by 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.

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]

Quote:

Originally Posted by 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!)

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]

Quote:

Originally Posted by dex 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]

Quote:

Originally Posted by dex 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]

Quote:

Originally Posted by dex 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]

Quote:

Originally Posted by bssc 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!