Bah! Credit!

[fidgiegirl]

We took a 24 month no-interest promotion at Home Depot to buy the appliances for our new house. There was a fantastic sale, this is a great promotion, the credit isn't costing us anything and yet it still bothers me that we have it!! We have to remember to make minimum payments and whatnot until we're ready to pay the whole balance since it's a credit card. Bah!!!!

That and we financed the place with 10% down, 10% on an LOC and 80% on the 1st mortgage. That 10% LOC bothers me, too!!!! Which is kind of dumb, because the mortgage really doesn't. Hmph.

That's all. Just don't want to backslide into (consumer) debt, and we are teetering on the edge. At least all the rest of the renovation stuff we've paid for in cash or sweat equity. :) It's gonna be nice, but it's hard to see the light at the end of the tunnel right now . . .

Ok, thanks for the rant dear friends . . .

[RosieTR]

Well, Fidgiegirl, it's probably good that it makes you a little uncomfortable because then you'll likely be less likely to actually slide into consumer debt. If that 0% thing is nagging you you're more likely to remember the payments and remember to save the balance so you can pay it off. The people HD are hoping for are *not* that uncomfortable and are more likely to forget to pay or (especially) not have the balance after 2 years and thus owe back interest and all that. If you do the math and set aside the amount each month like it IS a payment, you're good. But your tendency to discomfort is probably why you're on this board and had your finances in order enough to take the opportunity! I know what you mean, though. It's nagging to have debt even if it's helping your overall financial plan in the interim.

[jp1]

I understand completely. When I bought a computer 7 or 8 years ago (the one before the one I have now) I had an interest free deal from gateway and the whole time I had it I was nervous that I'd screw up, since I knew that if it wasn't paid off on time I'd be on the hook for interest all the way back to day 1 (that's what they're counting on...).

If I were doing that kind of deal now I'd probably automate the monthly payments and have a couple of reminders set in my computer and phone or whatever to ping me for the final payment about a month ahead of time so that there was no chance I'd forget. I don't like stressing about money (especially since I'm debt free and earn more then I spend so there's really no good reason to), so anything I can do to simplify my money life and free up my brain to stress about other stuff like who's going to be the next winner on American Idol (j/k) :) the better.

[fidgiegirl]

I wonder if they'll let me automate. I'm going to look right now.

ETA: Can't. Boo.

[lhamo]

Clearly they are trying to make it so people will slip up and they can slam them with fees/charges.

What I would do is set up an automatic email reminder to yourself to pay the bill on a certain day every month (outlook can do this), or else just pay the bill the day you receive it, regardless of the due date. That way no chance of a slipup. Alternatively, if the inability to automate is really bugging you, then try to get a 0% balance transfer option on another credit card that WILL let you automate payment, and eat the 3-5% fee they will charge you for the balance transfer.

Don't worry too much about continuing to slide down the slippery slope of consumer credit. This move is definitely good for you guys, and we're here to whack you upside the head when you need it :)

lhamo

[herisf]

While Home Depot may not let you automate, I bet your bank will. I do all my bill payment through my bank site, and I can auto-pay any bill I want. My bank has no charges for bill pay. If yours is free, look into it

[fidgiegirl]

Good idea, herisf. I do a donation this way already, I should do it for this, too. Plus I want to have my hubby do it for his boat storage fee. He gets so confused because he pays 3 months, then his dad pays 3 months, then they can never remember whose turn it is, etc. I want to go to us paying the rental every month on autopay through the bank, and then his dad gives us an extra $10 every month when he pays us the phone bill. Much easier. Thanks for the ideas, all.

[artist]

I think it's good that it's nagging you a little bit. I'd be worried if it didn't.

[jp1]

Like heresf I only automate from my bank's billpay site. Not only is it easier to have all my bill pays happening in one spot, it also gives me more control. If I want to not pay someone for some reason I can simply go on my bank website and cancel that upcoming payment. If I've given the biller permission to suck money out of my bank account I imagine they'd be inclined to take what they felt they were owed, even if I stopped it for some reason, and would cite the user agreement I'd agreed to as "permission" for them to do so.

[creaker]

I only automate from bank site - just be careful of the billing cycles! You would think monthly payments mean once a month - for things like my mortgage it does. However credit card "months" don't always fall same day - paying monthly can leave you with a double payment one month and no payment the next month - and fees. Not sure if other kinds of payments work this way.