I need some more advice this morning, if you’ve got the time to offer your two cents.
Mr. A’s business checking account came with a $20,000 line of credit. We have only used it a couple of times, to move money over when we hadn’t been paid by a customer in a timely manner, and last month when we bought the used Chevy truck for $2000, we drew $1000 out of this account. I’ve made one minimum payment so far on that. It has an interest rate of 10.25%.
With my two credit cards being closed recently for non-use, I am starting to feel a little paranoid. I am wondering if I should just leave that $1000 pulled from the line of credit and consider the interest as money well spent to keep the account active. I mean, I know they have the right to lower it if they wish, but I do like the idea of having the cash readily available to our accounts and would hate to lose the option of having it. Should I try to use it for something but pay before interest hits? It almost seems easier to just take the hit for interest and make minimum payments. Agh. All other credit cards are at 0%, except for one that we try to pay off monthly.
What say you?
Thank you in advance!
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