Question

HELP So I need to know where to start, I use my credit cards and pay off the balance before paying interest. Horrible I know! But I don’t know how to start using cash envelopes with out paying my credit card balance. Do I just pay interest and start using my cash and debit card ? How do I get out of this vicious cycle !  

Answer 1

Wait, what's wrong with paying your credit card balance? Haha maybe I'm misunderstanding the problem.  

Answer 2

As long as you're paying off your credit cards before the due date & not paying interest, there's no problem with that! Rack in those points & cash back rewards! It only becomes a problem if you overspend & can't pay it off, and therefore have to pay interest on it.  

Answer 3

I’m trying to do the exact same thing. The issue is that the CC currently has a balance, and it always gets paid off, but the money to pay it off comes out of the account where all the cash is. So if we pay off the credit card, then we don’t have any cash left. If we stop using the cc then we start using the cash that we need to finish paying off the cc. I’m right there with you! I called Cap One and they waived my interest for the next 2 months so I can try and get my payment cycle switched so I’m just making several payments as I get money throughout the month and trying to sell things on FB to make extra cash to use instead of using the cc so I can start fresh with a zero cc balance and all my cash in my account. It’s going to take a couple months to get it all sorted out I think.  

Answer 4

I agree. I almost solely use cards and pay the statement balance every month. I have thousands in reward cash at the end of the year that I use for Christmas and travel  I won’t ever switch to using cash! I do use Mint to track my categories of spending and have set up a monthly budget through that as well.