Debt is a four letter word that almost every person has had to deal with since the beginning of written time and history. Debt was talked about in the bible, by Shakespeare, and by tens of thousands of other authors since. The posts found in this category have to deal with either my personal relationship with debt, or the idea in general.
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.