Ryan McFarland

I know that i have been focused on eliminating my debt this year.  My single resolution was to not owe on any credit cards.  But the more research that i have done on personal finance has made me aware that debt isn’t entirely bad.  Take a look at this chart.

You see that i have no charges on my American Express, WaMu, and one of my Bank of America cards(the business card).  That’s good!  That is the goal.  I have $5,000 sitting on the Chase card.  Need to get rid of that right?  Well, not so urgently.  Since November that balance (it was twice that) has carried a 0% interest rate.  As long as i can pay it off before interest accumulates why fret about a balance?  Regardless, i have been plugging away at that card - but did focus most on those with interest accumulating.

I also have about $2,500 on my Bank of America card.  That’s actually my Alaska Airlines card that gives me a mile for every dollar charged.  I had the card paid off a few months ago.  But Cena convinced me to resume using it.  For everything.  Get the miles and then pay it off every month.  They are expenses that i would have anyway.  That i would have paid with my debit card.  So now i’m able to keep money in my checking account longer.  And my checking account has a small interest amount paid based on my balance.  It is no investment but it is a nice change to have interest increasing my account value as opposed to decreasing it.

For instance; Last week i paid Petersburg Motors for replacing and installing my windshield and back window.  Just over $1,300.  I was about to pay with my debit card.  I have the money may as well pay it.  But i changed my mind at the last moment and put it on the card that earns me miles.

I need to remember that having some debt isn’t bad — i just need to make sure that debt is not out of control.