Water Giver

1y

Op said he 2k in debt and bro starts going off like op got a business loan

Valentine

1y

Credits card should already be accounted for in expenses, learn how to budget gang

ThisIsNeverThat

1y

Whats your monthly budget looking like brotha? Lemme peep game 📝

Valentine

1y

Can’t give figures, but my dad taught me how to only use credit on things like reoccurring bills. If I use credit for anything else, I know already I have the money to pay it off or will have the money before the due date. If I don’t have the amount by the due date, then I just carry that balance into the next cycle and pay it off asap.

I’ve had instances where I missed even doing that and my credit took a hit, but since I eventually paid it off, 4-5 months later my credit was back to the mid-high 700s.

Only spend when you know you can eventually pay it off, but that’s pretty basic instructions

ThisIsNeverThat

1y

on a 2k debt how much should I pay off every month?

I have 8k in my checkings rn

Valentine

1y

I’d say dedicate one check a month to paying that off, at least $500. By February you’ll have that debt cleared and be able to start a fresh.

Alternatively, I’d say just take that 8k and pay off that 2K, you’ll still have 6k and a peace of mind.

Both approaches work, the 2nd approach will allow you to start building your credit back sooner while the first approach saves you some funds. Really just your preference

Fever

1y

Credit cards I pay off asap

College debt both fasfa and private are a b****

Like why is private loans set up the way they are it feels illegal in so many ways

plants

1y

i put everything on my credit cards and pay them off in full every month. it's genuinely free money that way. effectively a 1-5% discount on everything depending on ur rewards

i am fleecing these scumbag CC companies and with joy

plants

1y

i put everything on my credit cards and pay them off in full every month. it's genuinely free money that way. effectively a 1-5% discount on everything depending on ur rewards

i am fleecing these scumbag CC companies and with joy

FOREVA

1y

can you explain this to a 5 year old
who never used a credit card before?

plants

1y

the way CC companies make a lot of their money is on charging u interest on the debt u carry on their cards. for instance on my amex it's a variable APR (annual percentage rate) between 20-30%.

If I had a balance of $1000 on that baby and my APR is 24.99% that means imma be charged $24.09 at the end of the month.

If I keep that balance going all year long, basically only paying the minimum, imma pay approximately $250 in interest charges. and still be in debt that 1k. and for what?

However if I paid off that $1000 when it's due at the end of the month then there's no interest charged on it, and when I look at the rewards on my card I can see that (for instance) I got 5% back at grocery stores, 3% back at gas stations, and 1% back on anything else, I basically "made money" by using their card. They basically gave me a small discount on every single thing I bought, and I paid them nothing for it. (unless your card has an annual fee like many do)

Plus when you make a purchase with a CC you have way more protection as a customer. You have the option to issue a chargeback and there are often some levels of insurance/warranty as well. Because you didn't technically buy it with your money you spend the CC companies money, they are more protective of that.

You can't do no chargebacks with a debit card, there's no protection or anything. It's why another user itt said he never carries his debit card with him anywhere and it's why I only keep a few thousand in my checking accounts. If the worst happened and it got stolen and they knew my PIN they would only clean me out a few thousand rather than all I have on me.

I hope that was simple enough haha

plants

1y

the way CC companies make a lot of their money is on charging u interest on the debt u carry on their cards. for instance on my amex it's a variable APR (annual percentage rate) between 20-30%.

If I had a balance of $1000 on that baby and my APR is 24.99% that means imma be charged $24.09 at the end of the month.

If I keep that balance going all year long, basically only paying the minimum, imma pay approximately $250 in interest charges. and still be in debt that 1k. and for what?

However if I paid off that $1000 when it's due at the end of the month then there's no interest charged on it, and when I look at the rewards on my card I can see that (for instance) I got 5% back at grocery stores, 3% back at gas stations, and 1% back on anything else, I basically "made money" by using their card. They basically gave me a small discount on every single thing I bought, and I paid them nothing for it. (unless your card has an annual fee like many do)

Plus when you make a purchase with a CC you have way more protection as a customer. You have the option to issue a chargeback and there are often some levels of insurance/warranty as well. Because you didn't technically buy it with your money you spend the CC companies money, they are more protective of that.

You can't do no chargebacks with a debit card, there's no protection or anything. It's why another user itt said he never carries his debit card with him anywhere and it's why I only keep a few thousand in my checking accounts. If the worst happened and it got stolen and they knew my PIN they would only clean me out a few thousand rather than all I have on me.

I hope that was simple enough haha

iHype

1y

I mean if someone steals your debit card you’d just file a police report and list the fraudulent charges and 99% likely you’re getting that money back no?

iHype

1y

I mean if someone steals your debit card you’d just file a police report and list the fraudulent charges and 99% likely you’re getting that money back no?