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May 17, 2019
8:11:05am
Ute in DC Playmaker
I think he is making an economics "rational actor" argument.
If you were a rational actor, your spending would in no way change due to you seeing that you have an extra $200 (or whatever) in your bank. You also receive no incentive for paying extra early. Therefore, as a rational actor who understands the time-value of money, you should pay off your credit card balance as late as you can without having interest fees.

However, people aren't really rational actors. If the money is not in your checking account, you (or your spouse) are less likely to spend money over the coming weeks.
This message has been modified
Originally posted on May 17, 2019 at 8:11:05am
Message modified by Ute in DC on May 17, 2019 at 8:13:22am
Message modified by Ute in DC on May 17, 2019 at 8:43:16am
Ute in DC
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Ute in DC
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5/17/19 7:46am

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