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Lately I have been taking personal finance more seriously. I have carried a credit card since I was 19 years old (I am 24 now). I always thought I could charge everything and get rewards/points for it! You can guess how that worked out - I started spending money I don't have.
Last week I finally pulled the trigger - I no longer carry a credit card. Anything I buy is with cash or debit card. It has been a major change, it is very strange to consciously think about my bank balance before every purchase. I simply don't have the self-control to use a credit card responsibly, so I need to just not have one.
Here is my question, do you carry a credit card or not? If you do, do you feel you have the self-control to not run up the balance?
I try to put everything over $5 or $10 on the CC, I Pay it when its due each month. But I can download every transaction into quicken so i know where i spend my mony
I have been using credit cards over 30 years. They have helped me in a bind several times when traveling. It would be very difficult to book a flight, rental car and hotel room without a card. I have always had the self control to not allow the card to get me in a jam.
I charge everything on my card both personal and business for the sky miles,but I pay the balance in full every month.Having self control and not running up huge balances that you cannot afford to pay comes from learning a few things.There are needs and wants in life and you need to realize this because it won't make a difference what your CC limit is,you'll keep finding ways to borrow what you don't have/need.
Simple little things will save you thousands over the years like making your own coffee everyday or bringing your lunch with you instead of eating out everyday. Add those 2 up and multiply that by 52 weeks then multiply that by 40 years. Also don't carry a lot of cash with you it will curb your impulse buying,you'll be less likely to search for that ATM machine.Better that you're realizing this now and trying to control it before you're in over you head later in life....Good Luck!
While I have consistently paid off the balance of my credit card every month (until I bought a house and had to carry a mortgage plus rent on my old apartment for a few months, but that was a one-time exception), I have found I spend 3/4 of what I did with a credit card when I pay in all cash.
Has anyone else found this to be the case? It is much more difficult to hand over $50 in cash than it is to charge $50. If anything, I would say having a credit card as opposed to cash promotes impulse buying.
If you visit an ATM once per week and know that is all you have to spend for the week, you become very conscious of your spending!
I carry one, and like some above posters pay the balance off every month. I like the cash back and other bennies, the stronger consumer protection, the better record keeping, the convenience, and the safety of knowing if I was in a jam I could handle a very large payment without worrying whether my checking account could cover it or going home to dig out the money market fund checks.
I use a monthly budget, so there is no difference in spending habits vs. cash, I budget x and I spend x.
Easier to track my spending habits with CC statement than trying to save every receipt. We build in impulse buying into our budget by being frugal on things we don't need like fancy cars or a McMansion.
I carry two cards -- one personal and one business. Once I had a problem with credit when I was young -- not a big problem at all, but I learned my lesson, and never again.
Credit can be a useful tool. Because we had credit, we bought a new fridge when ours died. I knew what we paid monthly in our budget for our credit card (we used it for everything as a convenience and it was more or less the same every month) and I knew what we saved, so when we bought the fridge, I budgeted for it over a period of two or three months.
Yes, we paid a little interest. But it wasn't hundreds of dollars. I figured that out too -- that's why it's called budgeting. And it was well worth the 15 bucks in interest to get a new fridge when the 35 year old one couldn't be repaired.
While I have consistently paid off the balance of my credit card every month (until I bought a house and had to carry a mortgage plus rent on my old apartment for a few months, but that was a one-time exception), I have found I spend 3/4 of what I did with a credit card when I pay in all cash.
Has anyone else found this to be the case? It is much more difficult to hand over $50 in cash than it is to charge $50. If anything, I would say having a credit card as opposed to cash promotes impulse buying.
If you visit an ATM once per week and know that is all you have to spend for the week, you become very conscious of your spending!
I am in complete agreement with you. When dealing with cash, you have something tangible that you physically see decreasing as you spend. I feel that hits harder and sooner than logging into my back accounts at home and going through that "Oh crap, ok, I'm not going to spend ANY MORE money until next week" feeling. If I don't have enough cash in my pocket, I'm just not going to buy that coffee.
Here is my question, do you carry a credit card or not?
I carry two.
Quote:
Originally Posted by hnsq
If you do, do you feel you have the self-control to not run up the balance?
Is a current 5K balance considered running it up? This month I bought furniture.
I have no trouble running up the balance, but I never charge more than I budgeted for.
Which means it is always paid in full... never carry a balance.
I charge just about everything.
I don't even have an ATM or debit card... see no reason to get either!
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