We are probably going to wait until we have some big purchases with 5% cashback bonus and hopefully bring this amount to $50. That means we need to keep the account open, hopefully we don't abuse the card again and charge $2000.
On a positive note, we have decided not to buy any furniture at this time. The spouse and I read all the comments and we agreed that it is probably better to wait, save and pay cash. I would like to thank everyone for their comments, you saved us over $2000 dollars!
HS
6 comments:
Congrats on your wise decision. Purchasing on credit tricks you, because it makes it hard to do a cost-benefit analysis. Because you are purchasing the item before you have to put in the sweat and sacrifice to pay it off, you don't think about whether you really value the item as much as they are selling it to you for. Once you are paying it off by making monthly payments, those payments have become the necessary cost of doing business. You might find in saving for the furniture that you would actually prefer to do something else with the money instead. After a year of sacrifice, my husband and I have saved $21,000 to buy a second car. (We need one now that I will be graduating from grad school and will have to get to and from work). The money is in the bank, we can pay for the car we want with ease, but I am NOT looking forward to having to drain our savings account next month, and if we had a junker in the driveway, I would probably continue driving that then spend this money. (Oh, and PS: It can be done. While I was in grad school, our combined annual income was about $70,000 a year -- much lower than yours!)
Kiss it goodbye. You will spend more than $26 of money you don't have if you keep racking up balances on this card to get to $50 in rewards. Consider the $26 your "stupid tax" for using a card that cost you guys so much anguish and set you back on your goals.
It was only 3 weeks ago I said "I'll believe you're really done with Discover when you post to say It's closed - we're done. You said 'goodbye' in May too and then racked up a balance again".
You're already looking for reasons to keep Discover and so your goal isn't really getting out of debt.
This blog should be re-named the "Ongoing Discover Card Saga Blog". ;)
GET RID OF IT - you DON"T have the self-control to keep it.
Hey everyone, look at me! I make over $100,000 a year, and I'm worried about $26 in rewards!
(insert sad story here)
You and I could be the same person. I am tackling everything you are, except I have FAR more debt than you. It's kinda ugly.
So glad you and your wife decided to wait! You can definitely use this as a little incentive. You said you'd be able to pay for it in 2-3 months. So see if you really can. In 3 months if you have the cash in hand you'll be able to purchase the furniture guilt free.
I almost guarantee though that you'll be reluctant to spend all that money on bedroom furniture.
Glad you decided to wait on the furniture. If you wanted to put it on a card and pay it off in 2-3 months, you can save your money and pay it all at once. And who knows, maybe they would even give you a cash discount.
As far as the Discover, close the account and forget about the $26. Seriously, it's not worth another purchase. Pretend you don't even have it. Good luck!
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