Avoiding Credit Card Float with Chad Clark

While this system works as long as you have a steady paycheck, it can become problematic if unexpected expenses arise or your income changes.

The Best Way to Avoid Credit Card Float

To determine whether you’re unintentionally riding the float, do this quick check:

1. Add up your current credit card balances.
2. Subtract that amount from your checking account balance.
3. If you don’t have enough in checking to cover your full credit card balance immediately, you are riding the float.

This means if you lost your income tomorrow, you wouldn’t be able to fully pay off what you’ve already spent.

To stay financially secure and avoid relying on the float, follow this key principle:

Always have enough money in your checking account to fully pay off your credit card balance at any time—not just the statement balance, but the full balance.

That way, when your bill arrives, you can pay it without dipping into savings or waiting for your next paycheck.

How the FaithFi App Can Help

Many people don’t realize they’re caught in the float cycle until it’s too late. That’s where the FaithFi app comes in.

FaithFi’s envelope system helps users track their spending and ensure they always have enough money set aside to pay off credit card balances in full. Users can ensure they're never one step behind financially by reconciling credit card envelopes within the app.

On Today’s Program, Rob Answers Listener Questions:

• My husband had heart surgery in 2021 and is now bedridden and paralyzed, so I had to quit my job to care for him full-time. I'm $20,000 in debt and trying to get help, but the process is slow. I also had a personal loan that went back up to the original $4,000 balance. What can I do in this situation? I need guidance on how to manage this.
• I had a 401(k) with a company I worked for about 10 years ago. When the company changed names, I kept my funds in the original 401(k) instead of transferring them. But now I can't find that old account anywhere. I've tried searching and contacting different companies but can't locate it. Do you have any recommendations on how I can find this old 401(k) account?
• I'm 58 and have a 3-year special catch-up contribution opportunity, during which I can contribute double the normal amount. Should I put all this extra into my 457 plan or split it between the 457 and a Roth account? I don't have much in my Roth currently, so I'm deciding whether to put some in the Roth or just contribute it all to the 457 to get the tax deduction.

Resources Mentioned:

• Faithful Steward: FaithFi’s New Quarterly Magazine
• Christian Credit Counselors
• UnclaimedRetirementBenefits.com (The National Registry of Unclaimed Retirement Benefits)
• Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives by Ron Blue with Jeremy White
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App