Ever since I got my very first credit card – thanks to J. C. Penneys! – I have tried to pay off the entire amount due on the card every month. I was using my card for convenience, such as wanting to go shopping a few days before the day I actually get my paycheck. I can still go shopping, put the purchase on my credit card, and then when I do get paid I can send the money to the credit card company.
Sometimes I use the credit card to buy more than I can afford, and when I do that I know in advance that I am agreeing to pay interest charges on that money until I pay it back. I don’t like to pay interest charges, but that’s the price I have to pay for not waiting until I have the cash in hand to make that purchase.
When I get my credit card bill, the amount of interest that I am being charged always gets my attention and makes me feel guilty. Call me old fashioned, but I do not like to owe people money. It is not a good feeling. So, I always pay more than the minimum amount due when I get the bill – even if I can’t pay the whole amount like I prefer, I can still put as much money toward paying off the balance. If all I pay is the minimum amount then the balance does not go down to zero. It’s really just simple math.