Be honest - How many of you pay your complete credit card balance off each month?

[Anonymous]

I've never carried a balance, ever. To be honest, when I first had them in college I didn't even realize that was allowed. It wasn't until my early 20s until someone told me about her $5000 credit card debt, and I was absolutely floored. I couldn't understand how the bank wasn't coming after her.

Needless to say I grew up in a very, ahem, "frugal" family.

[Anonymous]

It seems that this is a bragging thread. Only one person claims to NOT pay off their cards in full every month? I call shenanigans.

We do our best not to have to use credit cards, but it sometimes happens. Like 2 emergency vet visits in one month that we couldn't just cover out of cash flow. Shit happens.

I pay as much as we can monthly, but sometimes unexpected expenses come up that are not budgeted for that you can't just say "we just can't afford it and won't pay it" (imagine telling the vet or the car repair shop that you aren't going to pay - HA!) and not everyone has emergency funds that cover such things.

[Anonymous]

Always pay it off as we don't need it if we cannot pay for it now. Even when our income was lower, we paid it off.

[Anonymous]

Anonymous wrote:we pay ours off monthly too.

To the PP who will be debt free in August 2013, good for you!

thanks. I'm not the OP, but seeing that I'm the only one who didn't pay credit cards off in full is a very good encouragement to keep at it.

[Anonymous]

Anonymous wrote:It seems that this is a bragging thread. Only one person claims to NOT pay off their cards in full every month? I call shenanigans.

We do our best not to have to use credit cards, but it sometimes happens. Like 2 emergency vet visits in one month that we couldn't just cover out of cash flow. Shit happens.

I pay as much as we can monthly, but sometimes unexpected expenses come up that are not budgeted for that you can't just say "we just can't afford it and won't pay it" (imagine telling the vet or the car repair shop that you aren't going to pay - HA!) and not everyone has emergency funds that cover such things.

I think it says more about what kind of buffer you have. A $1000 vet bill would not incur a credit card debt. If I was that close to running out of money every month, something would have to give - I don't think I would consider myself, for example, being able to afford a pet. (Not saying you should get rid of pet b/c you are in tough times). I think DCUMers tend to be very financially conservative and have high HHIs. I don't have a high HHI by DCUM standards but we never have to even think of whether we will have enough to pay our bills. Smaller house, cheaper day care option, we don't eat out, etc - a lot of our friends spend a lot more on food, house, child care, etc. than we do.

[Anonymous]

My husband and I each have our own (separate) cards & accounts. We each pay ours off completely every single month, without fail.

[Anonymous]

We always pay in full.

[Anonymous]

Anonymous wrote:My husband and I didn't, and now we are on a mad mission to pay off every piece of consumer debt (August 2013, here we come!) We both paid our own way through college, and worked on campaigns as youngin's and now we are paying for using credit cards badly. I'd love to say I lived lavishly in college, but even then I worked two jobs and went to school. Ugh. I'll also be teaching my kids how to use credit properly.

Was there something that inspired you?

[Anonymous]

Anonymous wrote:It seems that this is a bragging thread. Only one person claims to NOT pay off their cards in full every month? I call shenanigans.

We do our best not to have to use credit cards, but it sometimes happens. Like 2 emergency vet visits in one month that we couldn't just cover out of cash flow. Shit happens.

I pay as much as we can monthly, but sometimes unexpected expenses come up that are not budgeted for that you can't just say "we just can't afford it and won't pay it" (imagine telling the vet or the car repair shop that you aren't going to pay - HA!) and not everyone has emergency funds that cover such things.

Well the OP did ask how many people do pay it off--not really bragging. That said, you are right, that to do this you have to live within your means and either have a HHI that exceeds your spending or have a decent emergency fund, such that you can cover unexpected but unavoidable expenses (like the car repair or vet bill). We've budgeted so our income covers our expenses. But also saved (and replenish when we draw down) so if something expensive arises we don't have to incur debt for it. We are lucky to have been employed throughout the recession but we've also been conscious of our spending and savings and prioritized building an emergency fund. I understand not everyone can do that, but I bet that's how all the people on here can HONESTLY respond that they pay off their credit card bill each month.

[Anonymous]

I am 50 and have paid off my balance every month for as long as I have had a credit card. I have no tolerance for debt.

[Anonymous]

Anonymous wrote:It seems that this is a bragging thread. Only one person claims to NOT pay off their cards in full every month? I call shenanigans.

We do our best not to have to use credit cards, but it sometimes happens. Like 2 emergency vet visits in one month that we couldn't just cover out of cash flow. Shit happens.

I pay as much as we can monthly, but sometimes unexpected expenses come up that are not budgeted for that you can't just say "we just can't afford it and won't pay it" (imagine telling the vet or the car repair shop that you aren't going to pay - HA!) and not everyone has emergency funds that cover such things.

You have to put aside money for an emergency fund each month as part of a budget. You're right--shit happens and you have to plan for it. That's called being smart, not shenanigans.

[Anonymous]

I wish. I pay my amex each month in full, that is normally $2K or so. But my BofA Visa has a $8K balance. Hopefully pay that off in the next 6 months.

[Anonymous]

Always pay in full. Average 6 to 7 K/mo.

[Anonymous]

We always pay it off, but we have no long-term savings. So, no cushion. If that makes people who don't like the "yes" answers on the thread feel any better.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My husband and I didn't, and now we are on a mad mission to pay off every piece of consumer debt (August 2013, here we come!) We both paid our own way through college, and worked on campaigns as youngin's and now we are paying for using credit cards badly. I'd love to say I lived lavishly in college, but even then I worked two jobs and went to school. Ugh. I'll also be teaching my kids how to use credit properly.

Was there something that inspired you?

As silly as it sounds, having a kid. We have decent credit scores, despite the amount of debt, and were able to buy a house (in DC proper). Once the lil was born it became clear that we needed to save a lot more money and the easiest way to save more was to stop donating to Visa and Mastercard every month. So we bought Suze Orman's books, learned we were doin' it wrong (saving instead of paying off debts), and switched our focus. Our savings accounts weren't huge after we bought our house, but we through it all at the highest interest-rate card, got one more card with no interest, and we transfer debt to that card, pay it off, then do it again. Just having a plan makes me feel so in control, and that there is a goal date makes it real.

Parents - teach your kids how money works. Seriously. It sounds so obvious, but I think it's a learned skill.