Post # 1
As I read through other debt related posts, I see a lot of people commenting with something along the lines of “I have about $1000 in debt on my credit card, but I pay off the full balance when the statement comes.”
To me, that’s not debt. You only have credit card debt if you DON’T pay off the balance 100% each time the bill is due.
Am I wrong? What do you think?
Are people maybe saying this because they don’t have the cash available to pay it off any old time but they make sure the timing is right to have it before the statement is due?
Post # 3
I use my credit card and pay it off before my billing cycle in order to accumulate my cash back rewards points. I do not actually carry a balance, in which case I would consider it debt.
Post # 4
@cbgg: A lot of people have a big savings account but still put stuff on their CC for perks and points and pay it off.
If someone does this, I don’t consider it debt.
I would consider it debt if they didn’t have a savings account.
Post # 5
Not really. It’s a temporary balance that I have the money to take care of.
Post # 6
No, anything that I have the cash to back is not debt to me. I got a 5 year loan on my car and make payments on it, but I don’t consider that debt either because I have the cash to back it. I just choose not to pay for it in full up front cause I could get 0% financing.
Debt to me is money owed that you don’t actually have the cash for.
Post # 7
@cbgg: it’s technically debt until you pay it off.
Post # 8
@cbgg: I don’t use my CC to pay all my bills (I was raised with the CCs are evil mentality from my grandparents, hard to get over) but I know that many people do to make the most of reward points and cashback bonuses. I do not see it as debt if you pay the full balance before the due date so that no interest is accrued.
Post # 9
@Washingtonian: I agree, it technically is a debt that’wowed, but when someone says “credit card debt” I think of a revolving balance
Post # 10
We put everything on our credit card and pay it off enitrely each month. I have never considered this debt. Especially because we always have enough in our bank account to pay it off at any time.
Post # 11
My FI had a cc card that he paid off every month for about 5 years. He would put EVERYTHING on it. I asked him if he had a cash back program and he said he didn’t know. He went into his account online and he had over $500 waiting for him to either cash our or help pay off his next bill with.
THAT WAS A HAPPY DAY FOR HIM
Post # 12
i would consider it debt if i werent able to pay it off. but the situation you describe? nope
Post # 13
@Washingtonian: Isn’t it just technically a bill that hasn’t become due yet?
I wouldn’t consider my electicity bill to be debt unless I let it go over the terms of payment.
Post # 14
@cbgg: If I’m not paying interest, I don’t consider it debt.
Post # 15
I don’t! That’s just “monthy spending”–But we put EVERYTHING on our card, since it’s a rewards card! So CC is the only way we spend money unless we go some place cash only!
Post # 16
@cbgg: I have 10x in my savings account what I’m allowed to charge each month so I will for sure have the money, so no. I use credit card for the protection (not attached to my bank account) and to build my credit (I’m young still) and to get rewards