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Esteemed Contributor
Posts: 5,069
Registered: ‎05-27-2016

Re: Using Credit Cards Encourages Extra Spending 💳


@MINT wrote:

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


@MINT we put $10,000 on our last car.  Financing the rest but will likely pay it off sooner.  My downpayment was good cause it was cash.  No qualms with that.

*Call Tyrone*
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Honored Contributor
Posts: 12,375
Registered: ‎01-02-2011

Re: Using Credit Cards Encourages Extra Spending 💳


@MINT wrote:

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


Okay, that makes sense I guess.  We pay cash for our cars, too, and we've joked about using the CC to get the dollar-back reward.

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Esteemed Contributor
Posts: 7,714
Registered: ‎03-10-2010

Re: Using Credit Cards Encourages Extra Spending 💳

I put everything on my credit cards and pay them off each month. There are many advantages that paying cash doesn't offer. The obvious cash back, record of purchases, easier returns, and not having to handle money which is filthy.

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Trusted Contributor
Posts: 1,794
Registered: ‎03-15-2010

Re: Using Credit Cards Encourages Extra Spending 💳


@MINT wrote:

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


That's what the car dealer told us - by law we could only put $3k on card. We pay everything off so no "double whammy" with car loan/cc loan. Also, I see zero benefit to having a debit card. My daughter lost hers and the thief had direct access to her checking account and they locked her account for 7 days to issue new card/paperwork. We had our Visa compromised (someone charged $3800 to airbnb) and immediately the charge was taken off and a new card was overnighted to us. We use credit wisely and to our benefit. I understand not everyone is like us and thus cash/debit works for them 

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Esteemed Contributor
Posts: 5,069
Registered: ‎05-27-2016

Re: Using Credit Cards Encourages Extra Spending 💳


@occasionalrain wrote:

I put everything on my credit cards and pay them off each month. There are many advantages that paying cash doesn't offer. The obvious cash back, record of purchases, easier returns, and not having to handle money which is filthy.


@occasionalrain how did you manage handling money before the advent of plastic?  Can't wash that plastic card and it is just as filthy I'd imagine.

*Call Tyrone*
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Esteemed Contributor
Posts: 5,069
Registered: ‎05-27-2016

Re: Using Credit Cards Encourages Extra Spending 💳


@scatcat1 wrote:

@MINT wrote:

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


That's what the car dealer told us - by law we could only put $3k on card. We pay everything off so no "double whammy" with car loan/cc loan. Also, I see zero benefit to having a debit card. My daughter lost hers and the thief had direct access to her checking account and they locked her account for 7 days to issue new card/paperwork. We had our Visa compromised (someone charged $3800 to airbnb) and immediately the charge was taken off and a new card was overnighted to us. We use credit wisely and to our benefit. I understand not everyone is like us and thus cash/debit works for them 


@scatcat1 what are you talking about?  I asked if by putting $15,000 down via a credit card would incur interest charges on that credit card ~ added to the interest charges for the remainder of the financing for the loan of the car.  That's a double whammy when it comes to finance charges.  1.  THE CAR LOAN  2  THE CREDIT CARD.

 

So....the person said they had $20,000 to work with which means I understand now that the $15,000 was separate and apart from the rest.  

 

I buy what I want, based on what best suits my needs.  Credit/Debit/Cash......

*Call Tyrone*
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Esteemed Contributor
Posts: 5,087
Registered: ‎12-12-2010

Re: Using Credit Cards Encourages Extra Spending 💳


@MINT 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


@MINT...same here. We put everything on one card & pay it off at the end of the month. Debt is not in my husband's vocabulary.

________________________________________________________________________________________________
It isn’t how long you live that matters; it is how well you are prepared to die.
~~Col. Robert B. Thieme, Jr.
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Honored Contributor
Posts: 28,379
Registered: ‎03-12-2010

Re: Using Credit Cards Encourages Extra Spending 💳

I don't have any.  My daughter pays off her's every month, so did my late husband.  When he died, I just paid everything off and don't bother with them anymore.

 

People get in the trap of using them and paying the minimum and never pay them off.

 

I've been told they charge huge interest rates.

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Valued Contributor
Posts: 676
Registered: ‎03-29-2010

Re: Using Credit Cards Encourages Extra Spending 💳

I use an AMEX gold card that requires payment of all charges every month....HOWEVER,

 

when I go to CVS and decide to use my AMEX card, I purchase double what I thought I was going to.

 

BTW, it took me years before I used a card that required me to pay immediately...I used to have a good amount to CC debt.

 

On the Q, I do tend to buy if there are easy pays

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Trusted Contributor
Posts: 1,797
Registered: ‎10-07-2013

Re: Using Credit Cards Encourages Extra Spending 💳

[ Edited ]

It only encourages extra spending if the holder allows it to do so.  No one is holding a gun to the credit card holder's head and forcing him/her to spend.  It's a personal matter and a personal decision and a matter of personal judgement.  If you haven't learned self-control through life, you are in a bad way.  Learn how to control purchasing impulses and you'll do just fine with a credit card.