A crisis of credit conscience

Decisions, decisions.

I just paid off the last $14.15 I owe Capital One. Now my card balance reads zero (or will after the payment processes). Of course, I now owe Commerce Bank the sum I had previously owed the credit card, and will be paying it off at a rate of $100 per month for the next year and a half or so, and the first payment comes out of my account on the 26th—but at least I'll be able to make progress on the debt at that rate.

But this brings me to another decision. I got a letter today noting that the $59 annual fee on this card comes due in October. I can decline the fee before then, but that will also end up cancelling my card.

If I cancel the card, I lose my "safety net"—the ability to make vital payments like my electricity bill or other miscellaneous charges if I miscalculate my finances and find myself short at a crucial time. And I also lose the ability to do things like rent cars, which tends to require the use of actual credit cards. It's annoying to be saddled with an annual fee for the privilege of going into debt and paying greater fees—but on the other hand, my credit score is such that it doesn't look like I'm going to be getting any more free card offers any time soon, like I did back in my college days.

And using the card as a "safety net" is what largely ended up saddling me with the debt I had to take out a personal loan in order to pay off.

And I'm also still going to be paying on my student loans until approximately forever.

Yeah, I know, I probably ought to just bite the bullet and cancel the card. It just leaves me a little nervous to know I'm not going to have that little bit of backup I came to rely on, even if I know it would be foolish to rely on it anymore.

A crisis of credit conscience

Decisions, decisions.

I just paid off the last $14.15 I owe Capital One. Now my card balance reads zero (or will after the payment processes). Of course, I now owe Commerce Bank the sum I had previously owed the credit card, and will be paying it off at a rate of $100 per month for the next year and a half or so, and the first payment comes out of my account on the 26th—but at least I'll be able to make progress on the debt at that rate.

But this brings me to another decision. I got a letter today noting that the $59 annual fee on this card comes due in October. I can decline the fee before then, but that will also end up cancelling my card.

If I cancel the card, I lose my "safety net"—the ability to make vital payments like my electricity bill or other miscellaneous charges if I miscalculate my finances and find myself short at a crucial time. And I also lose the ability to do things like rent cars, which tends to require the use of actual credit cards. It's annoying to be saddled with an annual fee for the privilege of going into debt and paying greater fees—but on the other hand, my credit score is such that it doesn't look like I'm going to be getting any more free card offers any time soon, like I did back in my college days.

And using the card as a "safety net" is what largely ended up saddling me with the debt I had to take out a personal loan in order to pay off.

And I'm also still going to be paying on my student loans until approximately forever.

Yeah, I know, I probably ought to just bite the bullet and cancel the card. It just leaves me a little nervous to know I'm not going to have that little bit of backup I came to rely on, even if I know it would be foolish to rely on it anymore.