I am so intense to get debt free, that I am willing to do something, that some may say is unwise. But, I could have my credit card finally paid off in september, once and for all. However, to do it, I would have to not pay any of my bills in September at all, or very few of them. Then pay my bills for 2-3 months and then take a month to do the same to my home improvement loan. Leaving only my $15,000 car loan and my $20,000 incomee. What is everyone's thoughts on this concept?
update: Your comments are really appreciated. This wild thought has floted it's head before, but never gave it much serious consideration. Still though, positive or negative, I want to hear everyone's thoughts. Thanks to those who have already shared their wise thoughts and to those who are still to share.
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I'll comment. Quite frankly, I think it's not smart. You can still intently pay down your credit card debts (and your other outstanding debts) over the course of the next few months.
ReplyDeleteYou never know where life will take you. You never know what emergencies lurk just around the corner. Not paying any bills in Sept puts you in a shaky financial situation that might--in the end--only dig you into a deeper whole.
My two cents.
Doesn't make sense to me - not sure what paying off the credit card bill does if it means you can't pay your other bills. If you default on any of your bills, you want them to be unsecured credit card bills, not your utilities. While lump sum payoff might sound tempting, it doesn't make it financially sound.
ReplyDeleteI am totally against this. You should maintain all your bills current, then apply the rest to the debt.
ReplyDeleteI don't know about where you are, but by me the utilities (at least NICOR(gas))report on your credit report.
Plus, if experience says anything, the fees from not paying the rest would well outweigh the gains on the credit card.
You didn't get into debt overnight. Don't plan to rid yourself of it overnight. Sorry, but that's not how it works.
Slow and steady wins the race, but fast and skippy gets your electricity turned off.
ReplyDeleteI agree, it doesn't sound like a good idea to me. You should always pay your bills! So that menas you are out of debt a little later. At least in the meantime you have kept steady! And like someone else said, you never know what going to happen. You should always keep current on everything.
ReplyDeleteIf your bills are electricity, phone, and such, the truth is you could get away with not paying them for a month, and since they are usually not credit lines, this won't reflect negatively on your credit report. But I don't think it's ethical, as they aren't intended to be sources of credit.
ReplyDeleteFocus on rate. The lowest rate will bring the fastest payoff period over time.