I always pay off the credit card bill out of my mortgage and never have to worry about juggling credit all over the place. Like other people here, I haven't paid credit card interest for over 10 years, I really don't know what interest rate any of my cards charges and I really don't care.
I can't be bothered with the "bait and switch" offers of balance transfers and such like, though I know a lot of people who take these offers for all they are worth and good on them. I just don't have the time these days.
Originally Posted by
writetorich
For those not on a set salary who have liquid assets earning 6%, then paying 9.9% is an effective interest rate of 3.9%.
Is the 6% return net or gross? If it's gross then you have to subtract tax from it and (for my tax position here in the UK) that would mean a 3.6% return which doesn't look like a good deal at all.
Quite aside from that, if you have LIQUID assets which produce a return (after tax) which is LESS than you pay on your card why on earth would you carry a credit card balance which charges you MORE? It simply doesn't add up.
I suppose it suits some people to carry a balance on their cards to deter them from spending more than they can afford but I can't think of any other reason to do it.