Recently I told you guys that we paid off our car. Even though we’ve been having a lot of problems with the car lately, we were still excited to know that we will no longer have to send in these monthly payments.
However, because of all the expenses of trying to repair the car – which never really did work – we had to use a credit card that is made specifically for car repair. We paid for some of the repairs in cash, but when they began to mount quickly, we had to use this card. The good thing about this card is that if we have any expense that is at least $299, we have 6 months to pay off the balance without accruing any interest.
We Paid Off Our Credit Card!
We sent in a payment of around $900 in April, and that left us with a balance of a little less than $600. So a few weeks ago while looking over the budget, I realized that we were able to pay off the remaining balance a month ahead of schedule and this meant that we didn’t have to pay any interest on the expenses.
Getting an interest-free loan like this is one of the benefits of having a credit card – this is why I will never agree with the advice that tells people to avoid credit cards at all costs.
It felt good to be able to pay this balance off before any interest accumulated, and also a month before we had planned.
Of Course, There’s A Twist
The only negative thing is that we had to take my wife’s vehicle in for repairs, which were little over $500, and we were anticipating using this credit card and paying it off before the new six month clock would run out. However, the card is only accepted at certain shops which have a relationship with the company that backs the card.
Once in a while we play with the idea of trying to take out a personal loan, but since we have our larger balances on cards with temporary 0% interest offers, we wouldn’t make out any better if we went with that option.
So we had to put those expenses on another credit card, and we have to try to pay it off immediately before interest starts to accrue. Before we make that decision, we will have to sit down and look at all of our finances to make sure that we aren’t neglecting a bill which has a higher interest rate in order to pay off these new car expenses.
I love to see that we are making progress in our finances, however, each time we have to sit down and manage our accounts or even manage particular transactions in this way, it reminds me of the the stress and aggravation which typically accompanies debt.
I’ll be writing again to let you guys know that we decide to do, and I also plan to write more about our finances on the site, and also talk about our overall debt. I also plan to show you exactly how much we owe on each account, and what our plan is to pay them all off.
photo credit: StockMonkeys.com
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