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Hey, i used the envelope system!

and it is great! you see exactly what you have to spend for each budget. there is no guess work, because you can physically see what money is left. once the money is gone, you are done with that part of the budget until the next paycheck.

since you are paid once a month, you budget should be easy to get started with. yes, it is very overwhelming at first, but keep it up and it gets alot easier pretty quick.

first thing you want to do is before spending a penny, is get all your bills together, and the budget form, or even just a plain piece of paper. the budget from might help you from forgetting something though. at the top, put in the ammount of your check, and just go down the list entering in all your household and car bills. subtracting as you go, so you have a running total of what is left. put in what you need for food, entertainment, and any other categories you need to fill in. the last thing being your unsecured debt. put in the min payment sof all those debts. and once all is filled in, what you have left you want to put in your bef., once bef is at $1000, then you move that money to your lowest debt on the sheet, and you work the debt snowball that way.

by the third or forth month, you will have a good feel of how it will go. every month may change, but it should be pretty close for you by this point, month to month.

“Stan” wrote:

Most charge based on the average balance for the month, so the earlier you pay, the less interest you are charged.”

I talked to a bank employee and found out it is ‘average daily balance’. She agreed that paying as much as possible as early as possible in the billing cycle would be less in interest.

The example we used was owing $1000 with a due date of the 30th and a minimum due of $50. If I paid $200 when I got my bill (and beginning of the billing cycle) on the 5th, my daily balance would be averaging around $800 +/-. If I waited until the due date of the 30th, my daily average balance would be closer to $1000…no matter what amount I paid on the due date.

What would the actual interest dollar amount be?…I have no clue! LOL but it has to be less paying it earlier than later.

The bank employee even told me her friend ‘accidently’ took money out of the ATM with the card and it was processed as a Cash Advance. She had to pay off her purchase balance before they started applying money to the cash advance. The amount grew larger due to interest being added to the original amount. That’s just the way this bank processes payments…purchases first…cash advances second.
Interest or amounts didn’t play into the picture.

Looking at it again, I guess it really doesn’t matter to US which balance they apply the payments to because the interest is the same on both. I could understand where someone else pointed out the large difference in their interest rates for purchases and cash advances and it would make a big difference.

I want to thank everyone again for helping me LEARN about this credit card stuff. I know everyone’s CC are not the same…but at least we’re talking about it and learning. Now…to teach the kids! (I think that’s going to be my new tag line!)