Hello NANCY!

** 31.10.19 - 19:16, NANCY BACKUS wrote to AUGUST ABOLINS:

 -=>> Quoting August Abolins to Nancy Backus on 10-26-19  20:21 <=-


 AA>> Correction, it's really "just DEBT, only slightly deferred"  

 NB>No, I said it correctly.... although I suppose it would be clearer had I
 NB>said "still just paying cash, only slightly deferred"....  The point
 NB>being, that if one pays off the entire balance by the due date, one
 NB>isn't charged any interest, so it never really registers as a proper
 NB>loan... paying in cash is just deferred until the statement arrives and
 NB>one pays that then to the card company...

Let me put my original thought another way.  If you currently have a zero  
balance on your CC account, then you have NO CASH.  The moment you use the  
card, you create a DEBT on hand, not CASH on hand. All you created was a  
DEBT deferred.  You have 20 or 30 days to round up the cash from someplace  
else to pay it off.  The credit card companies do not give you cash. They  
give you the privilege of having a temporary DEBT.   ;)

Any use of the card DOES trigger a registration of debt.  All you have to  
do is look at the way the credit-reporting services record it.  If you pay  
on time all they do is NOT report any deliquency. But there IS an original  
DEBT the moment you use the card.

I use the cards for the privilege of "paying it off later".  I may not  
necessarily have the necessary cash for a particular purchase AT THAT  
MOMENT, but I could have the money rounded up and transferred to the  
necessary bank in a week or two later.

I also take advantage of the point-99 percent and currently one of the  
recent ZERO PERCENT offers.   I "pay off" some of the higher interest  
bearing accounts.  Then I pace my payments in such a way as to pay off  
that newly borrowed money by the time the offer expires.

I currently have a new point-99-percent offer "for six months", and 0- 
percent offer "for 12 months"!   Very tempting.


 AA>> .. One time, I ended up paying TOO MUCH into my credit card account
 AA>> and ended up with a negative balance.  A little bonus was that a
 AA>> negative interest was calculated in the mix too!

 NB>I guess you did get some extra cash that way.... :)

Yes.  I found out that I could technically "bank" my money in the CC  
account.  My CC cards are all no-yearly-fee types so anything I put  
towards the negative balance STAYS negative (and/or grows slightly more  
negative when they factor in the interest.)


 NB>Another way to get extra cash from the card is when it generates cash
 NB>rebates, for any payments made through it... Again, when one pays off
 NB>the balance in full when the statement comes, the rebate costs you
 NB>nothing... of course, that new cash isn't generating anything more for
 NB>you, until/unless you redeem it into a savings account or an interest-
 NB>bearing checking account...

I have a couple of those cash-generating cards too.  I just let that  
amount go towards paying off any debt genrated from using the cards.  At  
only point-5 percent, it only adds up to $200 or so per year between the  
both of them.


  ../|ug

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