Ask Terry Questions Credit card and savings account

Credit card and savings account

By Terry Savage on March 15, 2024 | Financial Planning / Retirement

My hubby thinks it’s best to not pay the credit card in full each month rather than taking it out of savings. Won’t that hurt our credit? We are retired living on a fixed income. I’ve always paid the balance due. Isn’t our credit score important?
Please help settle this argument once and for all!
Thank you.

Terry Says

Pay the credit card in FULL every month! It’s important. And there’s no sense paying a lot of interest on the balance.

But if it looks like you are digging into your savings and might run out of money, you have to re-think your budget and STOP SPENDING!

And if that’s impossible — one or both of you — needs to earn more money! Yes, you’re retired. But maybe you could get a paying job driving a neighbor to the store or to a doctor’s appointment.
And maybe you could benefit from an independent review of your budget. Call the National Foundaton for Credit Counseling at 800-388-2227 to talk to someone who can review your situation. You can trust them.



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