[rabscuttle385]

You should NEVER carry a balance on your credit card if you can help it, especially if you have the means to pay it off every month.

There is a reason that the British government still has consols (perpetual bonds) paying 2 percent fixed rates.

If you have balances at low, fixed rates below 8 percent, obviously, be prepared to pay them off at any time, but otherwise, it's stupid from a financial standpoint to pay them off just because you can. You are better off allocating the funds towards more productive uses.

That said, there is much psychological relief to be gained from having zero credit card debt, and if you place very high value on that, then by all means, pay it off.

[Swordfished]

There is a reason that the British government still has consols (perpetual bonds) paying 2 percent fixed rates.

If you have balances at low, fixed rates below 8 percent, obviously, be prepared to pay them off at any time, but otherwise, it's stupid from a financial standpoint to pay them off just because you can. You are better off allocating the funds towards more productive uses.

That said, there is much psychological relief to be gained from having zero credit card debt, and if you place very high value on that, then by all means, pay it off.

I was assuming 12-15% rates...but maybe multi-millionaires have low-rate credit cards, in which case, yes, treat it as just another way to move money around.

[absolootezer0]

If you have balances at low, fixed rates below 8 percent, obviously, be prepared to pay them off at any time, but otherwise, it's stupid from a financial standpoint to pay them off just because you can. You are better off allocating the funds towards more productive uses.

that's why i laugh at people that say things like "if i ever win the lotto, fist thing i'll do is pay off my house"
why? maybe pay it down partway, get a low interest rate mortgage and invest the money. i'd gladly continue to pay 6% on money if i'm using the money to make 10%.