Why I like paying my current credit card balance instead of my statement balance
Because I check my credit card statements every week, I usually don’t face a shocking balance by the time my bills come due. That doesn’t mean my statement balances are never high. On the contrary, I’m aware of what I’m spending over the month so that I don’t get caught off guard when it’s time to pay my bills.
Now, many credit card users regularly pay off their statement balances at the end of each month. But I prefer to pay my running balance. Here’s why.
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Cover my obligations
Many people fail to pay off their credit cards when their statements are due. And people who don’t pay in full end up paying interest on that debt.
This is a situation that I try to avoid. Paying interest is like throwing away money. Sometimes he can’t be helped. If you are having a financial emergency and you don’t have enough money to cover the expenses that lie ahead, you may have no choice but to use your credit card and pay those fees. when you can.
But I made a point of building up a big emergency fund for unforeseen bills. And as mentioned, I check my credit card spending week after week to make sure I’m able to pay my full balance on time.
Statement balance versus current balance
That said, I like to pay my current balance each month if it is greater than my statement balance.
When you log into your credit card account, you will usually see two separate balances:
- Statement balance: the amount of your last statement – and the amount you will have to pay to avoid accumulating interest.
- Current balance: the amount you owe to date, which may be more than your statement balance.
Suppose your credit card statements end on the 15th of each month, and on the 17th you log into your account to pay your bill. Your statement balance could be $ 1,000. But if you also made a charge worth $ 100 the day after your statement closed, your current balance will be $ 1,100.
I generally like to pay my current balance rather than my statement balance. I guess that means I’ll owe less money the next time I get a credit card bill, and it takes some of the pressure off for the next month.
Having said that, I can’t always pay my current balance rather than my statement balance. When I paid for my children’s summer camp, I owed $ 3,000 a month for several months in a row. Because I had saved money for camp year round, I was able to cover a single charge of $ 3,000 on top of my regular monthly bills. But I couldn’t handle of them $ 3,000 charges at a time. A few months ago when I received my statement balance (including a camp payment) it was $ 5,000. But my current balance was $ 8,000 because it included a second camp payment. In this case, I only paid the balance of my statement.
But most of the time, I like to pay a little extra on my credit cards when I take care of my bills, even if I don’t have to. I never liked the idea of owing money, so I think if I can afford to pay my current balance rather than my statement balance, it’s worth it.