Post # 1
FI knows that I use credit cards here and there and he basically would like for me to have them paid off and just rely on cash as we both know it will help me save more $ overall. Part of the issue really is on my end as I don’t have a lot of free cash to pay them off with wedding expenses, but I don’t feel it’s too big of a big deal right now. I have about 1300 in credit card debt, some of which is from the holidays and wedding expenses. My debt to income ratio is really good, but I do not pay it off every month and it’s been moving down rather slowly. This definitely made me wonder though, how much credit card debt is too much to you?
Post # 3
I have about what you do currently. We always pay off any remaining credit card debt with our tax return so we can get our credit card debt down to $0. I get uncomfortable when I go too high above 1K. I pay lots more than the minimum payment monthly.
Post # 4
I pay ours off every month.
Post # 5
If your debt to income ratio is good (I take this to mean you do have the money to pay off what’s on your cards), then why haven’t you paid it off? Pr am I misunderstanding you? It’s not good to carry a balance past the due date, even if you’re making more than the minimum payments.
I like using credit cards so that I can earn points, but I pay the balance in full each month.
Post # 6
I couldn’t live with myself if everything wasn’t paid off by the end of the month. We use our debit cards for everything and FI uses a credit card to get cash back for gas and stuff, but always pays it all if not more right after he uses it. I just don’t see the point of a credit card.
Post # 7
It depends. In general, if you can’t pay it off within the month, it’s too much. I rack up more than 1K in my CC every month, because I put every grocery bill, every gas purchase for my car and most monthly expenses on my CC to get rewards – however, I pay my card entirely when I come home.
If an emergency happens with your car or health and you can’t pay it within the month, well it happens or has happened to the best of us. In that situation, I would consider that more than 1K is a lot ; in an ideal situation, we should have an emergency fund for unexpected expenses like these.
However, when it comes to shopping and Holiday purchases, 1.3K is a lot and you definitely shouldn’t still be paying for it 1.5 months later. It means you spent money well over your means, and you didn’t plan ahead (budget). A good debt to income ratio doesn’t mean anything if you end up racking consumer’s debts and struggling to pay them off. Maybe you just need a little more discipline when it comes to your budget. It’s hard to always stick to it, but it’s so rewarding to see the numbers get closer to (or at) 0. Plus, when you don’t have to pay debts, you can save a lot more, and a lot faster. It’s a win-win situation.
Pay that CC asap and get savin’. 😉
Post # 8
I’m not willing to pay more than the ticketed price on the things I buy, and carrying a balance on a card does that. We use cards for almost everything – gasoline, travel, groceries, etc. – in order to keep track of expenses (different categories, separating work from personal), but we pay them off every month. I refuse to pay an interest charge, and with good cards, they pay YOU to use them (points, cash back, travel, etc.). I’d much rather they pay me than me pay more for everything I buy by paying interest.
Post # 9
@orchidblooms: We don’t have credit cards nor have we ever used one. FI would prefer to keep things cash always, I have no issues with a PL for bigger items. His car was paid in full, and mine has a PL almost paid off.
I think anything you can’t pay in full every month is no good. And if you can pay, why do you own a credit card??
I am just baffled by the notion that living beyond ones means is okay, because you have a credit card to help. Its just tossing money down the drain in fees and interest…
Post # 10
I basically use my credit cards as an extension of my checking account — a convenient way of shopping for things that I already have the money for. Credit card debt makes me nervous.
Post # 11
I think that amount of debt that is appropriate is also based on income. Right now I have about $3000 in credit card debt. If I wasn’t paying so much for wedding stuff, all of my debt could be paid off in a month. For others though, that could take a year or more to pay off. Its all relative
Post # 12
I’ve always paid them every month. I would never make a non-emergency purchase that I couldn’t pay off right away. Don’t wanna end up like my parents.
Post # 13
My FI and I have never had credit card debt because we always pay in full and on time. I think if you can, try to pay it off and follow what your FI have suggested you to do. But I understand that everyone are in different situations and sometimes it is easier said than done.
We just don’t want to pay any additional fees, and that’s why we always pay in full each time. Interest rates are so ridiculous. We just use our credit cards if we know we can afford to pay it all off before the due date each month.
Good luck and I hope everything works out in your favor!
Post # 14
- Wedding: June 2014 - Ontario, Canada ♥ EDD- April 2016
At this point in our life, if it’s more than we can pay off in a month then it’s too much. We pay our CCs off each month. Despite our low household income, we live within our means.
Post # 15
@orchidblooms: If you can comfortably pay off 2-3 times the minimum each month I don’t see how it’s a problem.
So…..I guess sky is the limit based on if you can meet those payments and still sleep at night.
Post # 16
We pay ours off every month. If you have the funds, it doesn’t make sense to pay interest on the debt.