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Honored Contributor
Posts: 10,990
Registered: ‎05-01-2010

Re: Using Credit Cards Encourages Extra Spending 💳


@Annabellethecat wrote:

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.


We've had numerous credit cards we have been using forever. Have always paid them off every month and receive cash back. Got almost one thousand dollars on one the other day.

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Posts: 2,723
Registered: ‎03-09-2010

Re: Using Credit Cards Encourages Extra Spending 💳


@scatcat1 wrote:

@Reiki604 wrote:

@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


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.


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!


No penalty for me from my card. I wouldn't use it if there were. I guess it's the card you use and the policy of the utility company.


'I refuse to engage in a battle of wits with an unarmed man'.......Unknown
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Posts: 5,860
Registered: ‎09-02-2011

Re: Using Credit Cards Encourages Extra Spending 💳


@SurferWife wrote:

@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.


     

             No debt here. 

@As with @SurferWife, 1 card, pay everything off. Have not handled cash in years.

We were 'taught' growing up No debt, and why would you want to chance an interest card charge..giving money back to any bank?

 

 "IF" ..```You can not afford [it]  or IF you have to ask the price, then wait, or /and if on a budget, I would tell the person: ask yourself -'do I really need this, at this time'..

BUT! I do think the EZ pays for the single mom or young working girl/ male is justified if the payment is paid according to the arrangements from the company.

 

 I think that most males can handle money better than women, though. Just my observation.

 

 Love on line shopping. very close now to having our food delivered to our door..minus any more boring ...>forgot this, need something else< SHOP grocery store events of public traffic and driving across town.

 

 

 

 

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Posts: 1,796
Registered: ‎03-15-2010

Re: Using Credit Cards Encourages Extra Spending 💳

[ Edited ]

@itiswhatitis wrote:

@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......


What I'm talking about is instead of paying cash for the car - writing a check for the whole thing, we were allowed to put $3k on a cc that gives us benefits (cash back, miles, hotel points). We pay the cc off at the end of the month. No car loan, no cc debt no finance charges.  I would have liked to put the entire car on a card - major points or $ cash, but no go per dealer. Ta Da!

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Posts: 12,281
Registered: ‎03-10-2010

Re: Using Credit Cards Encourages Extra Spending 💳

 

Wonder how much was spent on research/study. As a non-diploma carrying dummy, I learned this at the advent of the plastic cash replacement. 

 

Pretty simple to me. No credit/no cash, no sale. Open wallet/empty, no purchase. Must have taken a room full of academic geniuses to figure this tough one out.

 

Wonder in any of this money that was spent on this in-depth/scientific/mathematical research was mine?

 

 

 

hckynut(john)

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Posts: 22,836
Registered: ‎05-10-2010

Re: Using Credit Cards Encourages Extra Spending 💳


@NAES wrote:

@SurferWife wrote:

@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.


     

             No debt here. 

@As with @SurferWife, 1 card, pay everything off. Have not handled cash in years.

We were 'taught' growing up No debt, and why would you want to chance an interest card charge..giving money back to any bank?

 

 "IF" ..```You can not afford [it]  or IF you have to ask the price, then wait, or /and if on a budget, I would tell the person: ask yourself -'do I really need this, at this time'..

BUT! I do think the EZ pays for the single mom or young working girl/ male is justified if the payment is paid according to the arrangements from the company.

 

 I think that most males can handle money better than women, though. Just my observation.

 

 Love on line shopping. very close now to having our food delivered to our door..minus any more boring ...>forgot this, need something else< SHOP grocery store events of public traffic and driving across town.

 

 

 

 I don't know what I would do without online shopping and now Amazon has one hour delivery....thrilled!  I have been ordering my groceries online and having them delivered for several years now and hubby and I love.  We really aren't the type of people who like pushing a cart up and down the aisles of supermarket and standing in those checkout lines.  And, to be honest, I did a lot of impulse buying.  I'd buy stuff I only bought because I saw it.  Now I get only what I want and it comes right to my door, at time of my choosing.  I just found out that we can order from the flower shop and they'll deliver those items too.  Love!!!!  But I am hitting you with wet noodle for that remark about women....lol


      

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Posts: 2,189
Registered: ‎01-04-2016

Re: Using Credit Cards Encourages Extra Spending 💳

When the IRS allowed consumers to deduct credit card interest like mortgage interest people went on spending sprees and got large refund checks each year that further justified their habits. A friend of mine always took overseas vacations each year staying at the best hotels.  Always knew it would catch up with her one day as she and her husband's combined income was less than $50k a year and after living beyond their means for a number of years did end up in divorce and financial ruin.  

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Posts: 3,363
Registered: ‎03-09-2010

Re: Using Credit Cards Encourages Extra Spending 💳

I use my rewards credit card for everything, pay it off every month, have never paid interest and have earned $3000 in rewards.  People who are spendthrifts are that way whether they use cash, checks or credit cards.  I've know several spendthrifts and they irresponsible with no self control.  It's not the credit card's or the credit card company's fault. 

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Respected Contributor
Posts: 2,877
Registered: ‎09-15-2016

Re: Using Credit Cards Encourages Extra Spending 💳

I use my CC for all purchases & pay the balance in full every month. I have cash back rewards with an extra 10% added when I deposit the rewards into my checking account so it's a win win for me. I don't spend any extra just because I use a CC, I use it to my advantage.

 

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Posts: 7,360
Registered: ‎03-09-2010

Re: Using Credit Cards Encourages Extra Spending 💳

Which is why I only use A. Express which as to be paid off in full each month or write a check.  I have one MC and one Visa just in case needed for travel.  Have not used either in I cannot remember when.  When the 80's disappeared and I wanted to be debt free I cancelled all store cards.

"Live frugally, but love extravagantly."