s/o on not using Credit Cards: If you don't, why not?

[Brilliant]

My dh and I pay off our credit cards every month. We earn some great rewards by using them. For example, my main cc gives me back 6% on gas, grocery, and drug store purchases. I spend about $800/mo on those purchases alone, so that's about a $50/month bonus just because I used a cc instead of cash.

 

I understand not wanting to go into debt. But in my view, it seems that if you pay off the bill when it comes every month, incurring no interest, you haven't gone into debt. Any more than incurring a utility bill debt by using electricity or water all month long, and then paying that bill when it comes in.

 

Or am I missing a principle that's at stake?

[Amy loves Bud]

We use credit cards for everything and pay the balance in full. We have never carried a balance on our cards. For us, the convenience as well as the ability to dispute a charge should a vendor or merchant not fulfill is worth it.

 

However, it does cost. All those perks are paid for somehow, and that is through the fees that the credit card companies charge their merchants. Those fees are paid by us in increased prices for goods and services.

 

I'm okay with it, because I like the convenience the card offers us. Others might not be.

 

I know there are strong opinions about collections and interest rates and all that, but not having dealt with it, I can't really say those things bother me all that much.

[jail warden]

There's a study that shows on average if you use credit cards you tend to spend 12% more than if you had used cash. You may do much better than the average joe, but I challenge you to do a all cash month and see if you don't spend less. If you don't, no big deal, go back to the credit cards no harm done right?! I've noticed even when I use my debit card, while I'm not as likely to spend as much as a CC, I still spend more than if I had used regular old cash. It's definitely slashed our spending in these last 3 1/2 years since we started and I don't ever want to go back!!!

[Moxie]

We don't because the cc companies do some really unethical stuff (giving cards to college kids with no $$, illegal collections practices, etc.). I don't think they are good for anyone. I think they are a big part of the entitlement mentality so many people now have.

[Sunshine State Sue]

My dh and I pay off our credit cards every month. We earn some great rewards by using them. For example, my main cc gives me back 6% on gas, grocery, and drug store purchases. I spend about $800/mo on those purchases alone, so that's about a $50/month bonus just because I used a cc instead of cash.

 

I understand not wanting to go into debt. But in my view, it seems that if you pay off the bill when it comes every month, incurring no interest, you haven't gone into debt. Any more than incurring a utility bill debt by using electricity or water all month long, and then paying that bill when it comes in.

 

Or am I missing a principle that's at stake?

Do you pay an annual fee for that credit card? I've been thinking of switching to one that give me back something, but I don't want to have to pay an annual fee for it.

 

We pay ours off every month. In fact, when I use it, I write it down in the checkbook as if it were a check. That way it's no surprise, and when the bill comes, I've already taken it out (in my mind) of my account.

[Peela]

We have a credit card and we dont usually pay it off each month. But nor is it usually maxed out, and we only have a small limit on it because we use it online.

 

I always presumed that people went without credit cards simply because they couldn't trust themselves not to use them unwisely. And after all, the bank only benefits if you do use them unwisely, so it's not like they encourage you to pay them off.

It seems a practical thing to me not to give banks any more money (in interest) if you know, or suspect, you can't pay your cc off every month. Better off using cash. I would say its more a personality thing...some people are better off without the temptation.

[eternalknot]

I don't have a credit card. No real reason, really, I just am one of those stash-your-savings-under-the-mattress type of people who prefers to keep things simple and old school.

 

On the occasion that I need to use one, I just borrow from a brother, sister, mom, or dad and give them the cash. I'm the only one in my (large) family to have this particular hang-up, for whatever reason LOL.

[Audrey]

My dh and I pay off our credit cards every month. We earn some great rewards by using them. For example, my main cc gives me back 6% on gas, grocery, and drug store purchases. I spend about $800/mo on those purchases alone, so that's about a $50/month bonus just because I used a cc instead of cash.

 

I understand not wanting to go into debt. But in my view, it seems that if you pay off the bill when it comes every month, incurring no interest, you haven't gone into debt. Any more than incurring a utility bill debt by using electricity or water all month long, and then paying that bill when it comes in.

 

Or am I missing a principle that's at stake?

 

 

For some, it's more complex than that. We quit using credit cards at the beginning of our marriage as a means to eliminate debt. We were both in the "habit" of using credit cards -- IMO, a bad habit. So, to break that we simply closed all accounts, but one, then put that card in the safe deposit box so it couldn't be used. We learned to live without a credit card, and got along just fine.

 

Now, we do keep that credit card in the house, but it is only used when there is no other payment option for something that we really need and cannot find elsewhere. We try to use other payment methods whenever possible, but sometimes, it just isn't. The charge is always paid as soon as the transaction appears in our online statement.

[elegantlion]

We had gotten into a habit of using them when it wasn't necessary. We have a fluctuating income and it was too easy for us to charge thinking we'd have the money at the end of the month and then our income didn't match expectations. Cash does not have an interest rate and what we buy is paid for at the time of purchase, not the end of the month. :D

 

The perks didn't outweigh the temptation for us. We haven't had a CC for at least 10 years and I don't miss it at all.

[Renee in NC]

Because they took them all away!:lol::lol::lol:

 

Really, we will never again have one because it is too easy to try and make up for not enough income by using credit. In reality, if you can't afford to buy groceries, car repairs, clothes, etc. without a credit card, then you can't afford it *with* a credit card.

 

We could never pay it off every month (even when we intended to) because our income was just too low. It allowed us to fool ourselves for awhile that we could have a middle class lifestyle on a working class budget.:glare:

[BigMamaBird]

We do have a credit card for emergencies, but we don't use it often. When we were first married we were S.T.U.P.I.D. with our finances and got ourselves into deep debt. It took us years to pay it off and we are not going back there!

[caitlinsmom]

CC are not worth it to us. The appeal, ease, perks are just a marketing practice IMO. I would rather know that I am paying for my merchandise or service right then and there. I dont want my mail box filled with statements, that alone makes me stress.

 

Plus (and this is coming from a BTDT point of view) life just isn't predictable at times. You never know when you will be making great or even decent money one day and nothing the next. It can happen to anyone at any given time. The stress of having a $1000 credit card statement show up when you have nothing in the bank is just too much. Just not worth the hassle or perks.

[Moxie]

Watch the movie or read the book "Maxed Out". You'll learn all about the dark side of credit cards.