Paying off Holiday Purchases

[AshleyJordan]

So, rather than to let all of my Xmas shopping and travel expenses accrue interest, I paid off all of my credit cards today. . . so while I'm glad that I don't owe anything, still, ouch!! That's a lot of effin' money I spent! :eek:

That'll teach me to wait until December 15th to start shopping, and until December 23rd to buy my ticket home. . .

[SmilesSoSweet]

I paid cash for all my holiday gifts. My credit cards were paid off . . . until I had major maintenance on my car!

That sucks. I also had to pay for shots that insurance wouldn't cover. So that added up again. I do have some money in my ING Direct account that I transferred over to help pay off the credit debt!

Usually with me as soon as I'm done paying off my cards, some unexpected purchase comes along.

How did you have the money to pay off all your cards at once?

[AshleyJordan]

How did you have the money to pay off all your cards at once?

Paid them off from savings, checking, etc. . . I never charge more than I know I can easily pay off, and, I also never carry a balance over, so I only had to pay for the Xmas time stuff. . .I probably *could* have paid cash for those purchases, too, but I wanted to accrue the interest in my online savings account (5%) plus, I seemed to somehow be lured by the idea of getting Amex points. Meh. You need 5 gazillion of them to buy a cup of coffee.

Now that everything's paid off, I'm going to start shopping for everyone's 2007 gifts-- at a discount!

[SmilesSoSweet]

but I wanted to accrue the interest in my online savings account (5%) plus, I seemed to somehow be lured by the idea of getting Amex points. Meh. You need 5 gazillion of them to buy a cup of coffee.

If your savings earns interest at 5%, doesn't your credit card have a higher interest rate?

So waiting for interest to accrue on savings just means it adds interest to your credit card. But if you pay off your cards in full every month, it may not add interest.

[Just thinking aloud here]

[AshleyJordan]

If your savings earns interest at 5%, doesn't your credit card have a higher interest rate?

So waiting for interest to accrue on savings just means it adds interest to your credit card. But if you pay off your cards in full every month, it may not add interest.

[Just thinking aloud here]


Right, the latter, I pay them off before they can accrue interest ;)

[redav]

Right, the latter, I pay them off before they can accrue interest ;)
Most credit cards have a grace period, which is if you pay off the balance in full, purchases will not be charged interest. It never applies to cash advances (EVIL), and if you are ever late or carry even the tiniest balance, kiss it goodbye.

My cards pay 1-5% cash back. I don't know how that compares to miles or points, but it's a better deal for me.

Also, while you think about how much it hurts to pay that much, think how much more it would have been if you hadn't paid it all off right away!

[AshleyJordan]

Also, while you think about how much it hurts to pay that much, think how much more it would have been if you hadn't paid it all off right away!

Yeah, I'm well aware, I'm glad that I'm being responsible and paying the "debt" off right away, I'm just pissed that it came up to so much money. . . but I learned a lesson. I'm seriously going to be one of those people who shops for Xmas gifts throughout the year-- whenever I find something nice on sale, I'll pick it up.

[mishl982]

That's great that you paid it off, Ashley!

I am working on not using mine. Those damn rewards are so tempting but sooo bad for my shopping habit ;):

[AshleyJordan]

That's great that you paid it off, Ashley!

I am working on not using mine. Those damn rewards are so tempting but sooo bad for my shopping habit ;):


LOL, it was great, but now I know why it was so expensive. . . I accidentally paid off December and January (which isn't even due yet, or closed yet,) in one fell swoop on all three cards because I was doing it all online while trying to do work stuff. . . so I guess I win the "responsible user of credit" award this month . . . .

[sparky88]

hey, we just paid off our holiday expenses.

It's crazy because the adults in our family do not give eachother presents at all...but there are 9 cousins/neices/nephews and man do things add up quickly.

I think I am with you- I'm going to buy things on sale throughout the year from now on.

[wordsmith]

I always pay cash for holiday presents.

[weary]

I always pay cash for holiday presents.
ditto. for everything really, as i have no CC's any more. very liberating!

[wordsmith]

Same here. It simplifies life in the extreme to not buy that for which I do not have cash in hand.

[sparky88]

I'm one of those people who pay for every single thing with my credit card.

I am addicted to the rewards. hehe.