Community Chat

[handygal2]

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...

[software]

The credit card companies know it and hope you do.

@handygal2

[Mominohio]

Thanks for posting this.

It has always been a no brainer to me. I see it and experience it often. 

I have gone to spending cash only whenever possible, as it does make much more of an impact on me, just how much I'm really spending.

[dex]

If I needed to pay cash I wouldn't ever purchase much.I usually have only five dollars in my wallet.I like using the card so I can see what I have purchased,get the rewards and pay in full each month.

[Mint2]

We put everything we can on our card including utilities, phone and insurance.  I know this is true for some people but we have been doing this for years and have never not paid it off at the end of the month. You have to be disciplined to do this though. Some people I know can't do this but it works for us.

Mint

[Mominohio]

The last paragraph of this article in insane and one reason so many of us carry so much debt....buying into this cr@p

“Credit cards are useful because people want to be thrifty with time,” Mr. Calder explained. “In the 20th century, time became scarce and credit cards and credit in general helps with that. It’s one thing to save and save and buy an engagement ring for someone you love, but not if you wait and she runs off with someone else.”

[brandiwine]

Like anything else, you have to have a little self control.  That's like blaming the grocery store because they have ice cream and I ate the entire container. 

[gidgetgh]

That's how I also feel about Easy Pay. 

[reiki604]

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@Mint2 wrote:

We put everything we can on our card including utilities, phone and insurance.  I know this is true for some people but we have been doing this for years and have never not paid it off at the end of the month. You have to be disciplined to do this though. Some people I know can't do this but it works for us.

Mint

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I'm with you! I have one points card solely devoted to paying my mortgage, health insurance and utilities every month. Then I have the bank automatically pay off the card each month. Lots of points, no debt.

[esmeraldagooch]

It's why fast food joints started letting people use CC at their stores.  Most won't just charge a glass of pop...