Credit Card Finance Charges

rorich · 01-10-2008, 10:41 AM

How many people are comfortable with just the minimum payment on their credit card? Hopefully no one . There is a way to make purchases and get extra time to pay without paying any finance charges. You should pay close attention to the closing date. I find that when I make a purchase after the closing date, I practically get almost an extra month in which to make payments on those charges. For example, let’s say your bill is due on the 28th of each month, and the closing date is the 9th of each month. Any purchases made after the 9th will be due by the 28th of the following month. Therefore, you have an extra month to make the payment before being hit with finance charges. Hopefully this is enough time to pay the bill in full.

Avoid Finance Charges

rolltimer · 01-10-2008, 12:51 PM

I don't even look at what the minimum payment is. I always pay the balance in full. The only times I've been hit with finance charges were a couple of times my payment got lost in the mail. This was 15 or more years ago. Thank God for the internet and paying online. Since I've switched to having all my bills either debit my checking account automatically or bill to my credit card which I then pay online, I've stopped buying postage stamps every few months. I bought a sheet of 20 when the price went up in May 2007 and I've still got half of them left.

Gootsy · 01-10-2008, 03:23 PM

Yeah I have started doing what TS has recommended.

But I don't do it so that I'll hopefully have enough money by the time the due date rolls around... I do it so that I can plonk the amount that the bill would be, in my ESavings account so I can get some interest on it while waiting for the bill to arrive

.

It ain't much, but it's something, and makes sure I keep an eye on dates and stuff which's good.

VaranusK · 01-10-2008, 03:52 PM

Thanks for the tip, however I never buy anything if I don't have the money... I don't have a credit card, this way I am sure I have enough funds to get what I want. Now the second part (the first, in fact) is whether I really want that

rstlne · 01-14-2008, 01:55 PM

I always pay the credit card in full. No sense keeping a balance since I always have enough cash to pay it off.

rorich · 01-16-2008, 06:07 AM

Quote:

Originally Posted by rstlne

I always pay the credit card in full. No sense keeping a balance since I always have enough cash to pay it off.

This is a good thing. Unfortunately, most people "buy time" by making the minimum payment, not realizing that they are Hemorrhaging money.

Megan · 01-16-2008, 09:14 AM

Quote:

Originally Posted by rstlne

I always pay the credit card in full. No sense keeping a balance since I always have enough cash to pay it off.

Ditto. I'm lucky enough to have never been in a situation where I've needed to pay for something and not have the money for it, and I am good about not spending beyond my means.

That said, this is a good tactic if you do have to make an unexpected, necessary purchase.

01-10-2008, 10:41 AM	#1
rorich Member Join Date: Jan 2008 Location: New York Posts: 58 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (14)	Credit Card Finance Charges How many people are comfortable with just the minimum payment on their credit card? Hopefully no one . There is a way to make purchases and get extra time to pay without paying any finance charges. You should pay close attention to the closing date. I find that when I make a purchase after the closing date, I practically get almost an extra month in which to make payments on those charges. For example, let’s say your bill is due on the 28th of each month, and the closing date is the 9th of each month. Any purchases made after the 9th will be due by the 28th of the following month. Therefore, you have an extra month to make the payment before being hit with finance charges. Hopefully this is enough time to pay the bill in full. Avoid Finance Charges

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01-10-2008, 12:51 PM	#2
rolltimer Senior Member Join Date: Dec 2007 Location: Alabama Posts: 137 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (24)	I don't even look at what the minimum payment is. I always pay the balance in full. The only times I've been hit with finance charges were a couple of times my payment got lost in the mail. This was 15 or more years ago. Thank God for the internet and paying online. Since I've switched to having all my bills either debit my checking account automatically or bill to my credit card which I then pay online, I've stopped buying postage stamps every few months. I bought a sheet of 20 when the price went up in May 2007 and I've still got half of them left.

01-10-2008, 03:23 PM	#3
Gootsy Senior Member Join Date: Jan 2008 Posts: 283 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (24)	Yeah I have started doing what TS has recommended. But I don't do it so that I'll hopefully have enough money by the time the due date rolls around... I do it so that I can plonk the amount that the bill would be, in my ESavings account so I can get some interest on it while waiting for the bill to arrive . It ain't much, but it's something, and makes sure I keep an eye on dates and stuff which's good.

01-10-2008, 03:52 PM	#4
VaranusK Member Join Date: Jan 2008 Posts: 66 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Thanks for the tip, however I never buy anything if I don't have the money... I don't have a credit card, this way I am sure I have enough funds to get what I want. Now the second part (the first, in fact) is whether I really want that

01-14-2008, 01:55 PM	#5
rstlne Senior Member Join Date: Jan 2008 Location: New Jersey Posts: 369 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (115)	I always pay the credit card in full. No sense keeping a balance since I always have enough cash to pay it off.