My husband and I are at odds on how to go about paying off our credit card debt. Our total CC debit is around $ 4500. Our strategy thus far has been to pay off the statement balance each month to avoid paying any interest on our 3 major cards. We’ve been successful.. but we realistically can’t afford it and have just been using them as cash. Meaning, we just float everything on our cards that we would have been using our bank account to pay for. Our interest rate is crap, and thats what scares him from using the snowball method. We have 4 smaller store cards that we pay either the minimum payment, or a little more on. These are all inconsequential amounts that we can handle fairly well.
So my question is this: Do we continue down the path we’re on, paying the statement balance each month and try to reign in the spending to make the balances smaller and smaller each month? Or start using our own money to pay bills etc., and set up a budget to deal with the credit card debt? This scenario would mean paying plenty of interest over months.
I’ll add, although I’m sure I don’t have to, that we’ve been paying them like this since Christmas and we haven’t seemed to have made a dent in them yet. But in our defense we have had to make large purchases lately (new tires, car expenses for my teenage daughter, etc.). I’m just looking to see what others think about this situation and maybe someone has a better plan to offer.