Sharing Daily Discoveries About Personal Finance And Business Topics

Paying off A Bill At The Last Minute or Right Away

financial planning

I was thinking today as this month my credit card bill statement is higher than usual where I will have to transfer funds in the four figure range to pay it off. That’s not a big deal as I do have the funds for it. However, the cut-off date to actually pay it is the first week of next month. So one option I could do is simply transfer the funds as close as possible to the cut-off date so that I can continue to earn interest with the funds for the time being.

The other part in me just wants to simply pay it off so that it is dealt with as I personally hate having large bills lying around. However, I usually do this strategically with the credit card. For example, if I am doing a big purchase and my cut-off date for the monthly billing is today then I would usually put it on the next day so that the charge won’t have to be dealt with for a long time. When it comes to actually paying the bill though I feel like procrastinating it is a little risky as you never know what could happen.

Example, I could make a payment on time at the last minute but for whatever reason it takes the bank longer to transfer the funds. As a result, it counts as a late payment. I suppose it really depends on the amount too. I think the incentive to delay would be higher if it was like a $10,000 credit card bill as an example.

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