Reply to Don't want to pay off Credit Card

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[quote=Anonymous]If you have the willpower, the way to handle your concern is to put the credit card in a sealed envelope in a desk drawer or home safe for true emergencies.  Then you pay off the bill.  For many people who have no willpower, the problem is that you have it when you go anywhere that you can use it and you break down and use it because you have it with you.  If you don't have it on you when you have the temptation, then you can't use it.  But you can get it out, unseal the envelope or take it from the place of hiding in an emergency when you need it.

Just to give you an idea, your $13K worth of debt is costing you just over $700 per year in interest.  Frankly, that's rather an expensive way to prevent yourself from using a credit card.  And as you point out, with it maxed out, what is the point of having it in the first place?  It's not emergency insurance because it's worthless in an emergency unless you can get the credit card company to increase your limit.  If you have a spotless payment record, they might do so, but there's no guarantee that they'll do so when you have an emergency.  Better to pay off the card and stash it somewhere so that it really is emergency insurance.[/quote]

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