I'm surprised when someone tells me that are keeping money in a checking or low-interest savings account rather than paying off credit card debt. For whatever reasons they believe this is a common-sensible thing to do.
Because the amount of money you "have" (for spending, emergencies, whatever) is what's in the checking account rather than that plus the remaining credit line on your card, and there's an element of fear/panic about running out (and I guess getting hit with overdraft fees). That fear/panic means that logic suddenly doesn't apply.
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I'm surprised when someone tells me that are keeping money in a checking or low-interest savings account rather than paying off credit card debt. For whatever reasons they believe this is a common-sensible thing to do.
Because the amount of money you "have" (for spending, emergencies, whatever) is what's in the checking account rather than that plus the remaining credit line on your card, and there's an element of fear/panic about running out (and I guess getting hit with overdraft fees). That fear/panic means that logic suddenly doesn't apply.