Re: Using Credit Cards Encourages Extra Spending �... - Page 3

tansy · ‎01-02-2011

@Lucky Charm wrote:
@scatcat wrote:

Question for both of you - do you get charged a service fee for putting utilities, mortgage etc on a cc? We use cc for the benefits (points, cash back etc, pay in full). I would gladly pay utilities if there is no penalty. My DH thinks there may be a service charge for paying mortgage on cc. I tried to "charge our last car purchase" but was only allowed to put $3000 on the card. I wanted the perks!
I don't get charged any fees for having our cells, cable, ez pass, etc.

I tried to put $15K down on our last vehicle using a cc and they would only let us do 5K.

I was ready to walk because of it. They thought I was bluffing and I thought they were bluffing.

They weren't.

Did the dealership give you a reasonable explanation why, @Lucky Charm?

itiswhatitis · ‎05-27-2016

@handygal2 wrote:
Research has shown that people will spend more if they're using a credit card rather than cash. This means BUYING more items, as well as PAYING more for those items. It's especially true when consumers use "rewards points" cards.

Several studies have been done, showing the psychological effect when using a credit card. In one case, an auction was held for baseball and basketball tickets. Participants were willing to spend TWICE as much when they were allowed to use credit cards, as opposed to cash only.

Here's the link to a brief, interesting article:

https://www.nytimes.com/2016/03/27/your-money/credit-cards-encourages-extra-spending-as-the-cash-hab...

@handygal2, I agree with this. I do believe some people still know how to manage even with a credit card but credit card debt is the fourth cause of bankruptcy in the U.S

*Call Tyrone*

Annabellethecat66 · ‎03-12-2010

I just heard on FOX that most Americans save almost nothing for 'rainy days'.

As I went looking for the average amount saved, I found it difficult to decipher a similar amount on any one posting.

However, the synopsis is that (like the paragraph above) it is easy to see Americans just can't seem to save money.

In other words, "they live paycheck to paycheck".

Mint2 · ‎08-02-2010

I can't speak to the mortgage payment as we don't have one, but we have electric, home/car insurance, cell phone, internet and satellite tv dish monthly payment billed directly to CC and no there are no additional fees. Only thing was the electric company required we go to paperless billing which was no big deal.

Mint

tansy · ‎01-02-2011

@tansy wrote:
@Lucky Charm wrote:
@scatcat wrote:

Question for both of you - do you get charged a service fee for putting utilities, mortgage etc on a cc? We use cc for the benefits (points, cash back etc, pay in full). I would gladly pay utilities if there is no penalty. My DH thinks there may be a service charge for paying mortgage on cc. I tried to "charge our last car purchase" but was only allowed to put $3000 on the card. I wanted the perks!
I don't get charged any fees for having our cells, cable, ez pass, etc.

I tried to put $15K down on our last vehicle using a cc and they would only let us do 5K.

I was ready to walk because of it. They thought I was bluffing and I thought they were bluffing.

They weren't.
Did the dealership give you a reasonable explanation why, @Lucky Charm?

I am always aware of how much money is in my checking account and how much I have charged.

itiswhatitis · ‎05-27-2016

@Lucky Charm wrote:
@scatcat wrote:

Question for both of you - do you get charged a service fee for putting utilities, mortgage etc on a cc? We use cc for the benefits (points, cash back etc, pay in full). I would gladly pay utilities if there is no penalty. My DH thinks there may be a service charge for paying mortgage on cc. I tried to "charge our last car purchase" but was only allowed to put $3000 on the card. I wanted the perks!
I don't get charged any fees for having our cells, cable, ez pass, etc.

I tried to put $15K down on our last vehicle using a cc and they would only let us do 5K.

I was ready to walk because of it. They thought I was bluffing and I thought they were bluffing.

They weren't.

@Lucky Charm wouldn't you be paying the interest on your credit card for that $15,000? That's on top of the interest you pay for your car loan (assuming you take a loan to purchase your car). Double whammy.

*Call Tyrone*

Lucky Charm · ‎03-09-2010

@tansy wrote:
@Lucky Charm wrote:
@scatcat wrote:

Question for both of you - do you get charged a service fee for putting utilities, mortgage etc on a cc? We use cc for the benefits (points, cash back etc, pay in full). I would gladly pay utilities if there is no penalty. My DH thinks there may be a service charge for paying mortgage on cc. I tried to "charge our last car purchase" but was only allowed to put $3000 on the card. I wanted the perks!
I don't get charged any fees for having our cells, cable, ez pass, etc.

I tried to put $15K down on our last vehicle using a cc and they would only let us do 5K.

I was ready to walk because of it. They thought I was bluffing and I thought they were bluffing.

They weren't.
Did the dealership give you a reasonable explanation why, @Lucky Charm?

It was just their *policy*.

It was the first time ever they didn't budge from the price at all. Said it was the bottom line.

They had absolutely no idea we had traveled far to see this vehicle. No idea it was the make and model and color I really wanted.

So I caved.

No regrets though....I still love her!

Lucky Charm · ‎03-09-2010

@itiswhatitis wrote:
@Lucky Charm wrote:
@scatcat wrote:

Question for both of you - do you get charged a service fee for putting utilities, mortgage etc on a cc? We use cc for the benefits (points, cash back etc, pay in full). I would gladly pay utilities if there is no penalty. My DH thinks there may be a service charge for paying mortgage on cc. I tried to "charge our last car purchase" but was only allowed to put $3000 on the card. I wanted the perks!
I don't get charged any fees for having our cells, cable, ez pass, etc.

I tried to put $15K down on our last vehicle using a cc and they would only let us do 5K.

I was ready to walk because of it. They thought I was bluffing and I thought they were bluffing.

They weren't.
@Lucky Charm wouldn't you be paying the interest on your credit card for that $15,000? That's on top of the interest you pay for your car loan (assuming you take a loan to purchase your car). Double whammy.

No, we had $20,000 to put down. I wanted to put the $15K on my card for airline travel which at the time we were doing monthly.

I unplug my coffee maker after each use......you think I want to pay interest?

just bee · ‎03-10-2010

When I decided to go to nursing school a few years ago, I got an entry-level job at a hospital and became, out of necessity, extremely frugal. The first thing I did was hide my credit cards.

One day I realized I was probably damaging my pristine credit rating because I wasn't charging anything and I wasn't in debt.

Hid them so well I couldn't find them! Now I have just one card and I pay the monthly total.

But I do recall a time when I was first establishing credit and had a stack of cards and a lot of unnecessary purchases.

~My philosophy: Dogs are God's most perfect creatures. Angels, here on Earth, who teach us to be better human beings.~

Mint2 · ‎08-02-2010

We had the same thing happen to us. I believe there are now laws about how much of a car purchase that can be charged due to people bankrupting themselves and sticking the CC companies. We have paid cash for our last 3 cars so it would have been awesome to have been able to put it on our card, get the cash back and then just pay it in full. If you can't pay in full EVERY month you must not do this at all.

Mint