Credit Card Debt

I always hold that the best policy when it comes to credit card bills is to pay them as soon as possible to avoid the high interest rates. What are they now? Still 18% per annum?

Lately, I've been thinking maybe in the case of my wife's credit card bills, I should stop doing that. Just let them build up and accumulate interest. I know it sounds crazy, but that's still cheaper than the alternative which is to pay the 28000 bucks (That's her credit limit) and then let her run up another 28000 the following month.

Because the 18% per annum or 1.5% per month will just grow to 28,420 in one month. That is still less than the 56,000 I would have paid if I just let her spend willy nilly. Of course, this is compounding interest at at some point in time, that 28,000 would have grown to 56,000, and from there it would keep growing, but think of all the money I would have saved instead of letting her buy useless junk that doesn't even make her happy in the first place.

I could just stop paying her credit card bill and let the interest compound until the total is 56,000 and then pay it then. Or, I theoretically, I could even let it keep building until the 1.5% interest itself is 28,000, which is when the credit card debt has grown to 1,866,667, and then pay then. I would still be better off than paying it every month. I know that sounds crazy, but from a financial standpoint, that makes sense.

I have thought about all this. It  also never occured to me to do this before, but yesterday, I googled "Are you liable for your spouse's credit card debt?"

The answer is no.


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