When I started my personal finance blog in 2008 I had over $16,000 worth of credit card debt. It took about a year or so but I paid that all off, and The Wife and I were one of those people with literally zero credit card debt that carried over month to month. This lasted a few years until this past January when we bought our new home and subsequently “had” to get new carpeting, furniture and a TV. Fine, none of those things listed were necessities, but they certainly felt damn important to get…especially my TV. While The Wife and I had the cash to buy those things, I opted to call my dormant credit cards and ask for a long term 0% options.
For me, the liquidity was more important than a zero balance on my credit card, but I am not in this game of life alone and The Wife feels otherwise. Her very valid concern is that without a zero balance it is hard to tell if we are making net gains on paying back the debt. Is it impossible? Obviously not, I would just have to keep a record of the balance the month before and compare it to amount I paid to the company (or even just hook the card up to mint). The Wife’s response, is that it doesn’t provide enough clarity for her liking.
Normally, I would bust out an easel, power point or even excel to prove my point with The Wife, but this time it had almost nothing to do with math (the interest I am earning on that money is almost nil). This was just a personal preference…my need for liquidity vs her need for clarity as to what is going out.
Since I wasn’t completely against the idea, and it was obviously very important to her yesterday morning I sent in a payment for $6,800 which with outstanding payments should bring us to about zero.
As soon as I am done with my current short term goals (started in June) I will focus on getting my emergency fund back up to where it was.
I am not 100% Convinced it was the wrong or right decision, so I’d love to hear some opinions.