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Wow! I am amazed at how many seem to be "debt free"! I was begining to think there werent many of us left. I use cc's all the time, but pay them in full. I use them both for the perks and to keep my fico up. We own our home, so cc's are really the only way to keep up the fico. sometimes i'll use a card with 0-2.9% and keep a balance for 3-6 mos (money in savings).
I think the posters on this thread don't represent the normal consumer.
Good for us though.
I personally carry about $100 in cash, a debit and one credit card. Cash for small items, debit for groceries / household stuff, credit for larger purchases such as clothing, meals, etc. I have a seperate credit card used exclusively for internet purchases. Both credit cards are paid of in full every month. I keep track of EVERY penny spent.
Agreed that a credit card is a must if you want to establish credit. Too many cards are bad - especially if you don't use them OR if you abuse them.
I use credit cards for about everything, and NEVER carry a balance. I've had a few cards yanked due to my paying in full every month. But, there's so many issuers out there that I don't think I'll ever run out. I've read that the credit card companies make money on you if you charge $250, or more a month (through the fees merchants pay). The only time I pay cash is on a large purchase that I can finagle a "cash discount" from the merchant.
Cash discounts can't be advertised because the merchant would lose their credit card accounts. The First Commandment of Visa/MasterCard is: Thou Shalt not charge more for credit.
Thus, merchants have to set their prices with the credit card fee included. It's really kind of unfair that people who pay cash, pay higher prices because of all us plastic users.
No debit cards for me...they lack a lot of the safeguards and benefits of credit cards.
Cash discounts can't be advertised because the merchant would lose their credit card accounts. The First Commandment of Visa/MasterCard is: Thou Shalt not charge more for credit.
Thus, merchants have to set their prices with the credit card fee included. It's really kind of unfair that people who pay cash, pay higher prices because of all us plastic users.
I go to a gas station that DOESN'T accept credit cards - cash only, but sells gas for about 20 cents less than the other competitors nearby. It's always fun to watch someone come into the station and wonder why they can't swipe their card at the pump. I tell them they don't take cards and that's why the prices are cheaper.
I never pay cash for anything, ever. $3.50 at Starbucks - charge it. $2.99 at Subway -charge it. $1.20 for M&M's - charge it. I have no shame. I never carry a balance. I love my Amex card and my reward points love me.
I don't get it, but I see people using a credit card at the supermarket to buy $5 worth of stuff. Is it that much of a hardship to carry some cash (walking around money)?
It's just easy.
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I also don't use credit cards and pay cash for everything. I like the idea of keeping my buying habits anonymous. With credit cards, there is a record of everything you buy. It also prevents identity theft, such as having a restaurant waiter keeping a record for himself to use for fraudulent purposes.
You do have a point here, but Big Brother knows pretty much everything about you anyway. Knowing what you eat, drink, and wear is just another small drop in the bucket. Once you pay cash, it's your problem if something goes wrong with a purchase or service whereas credit card companies will work on the disputes for you and usually solve them. Btw, I've read you may get a discount on a big-ticket item if you use cash (probably up to the amount credit card companies charge), but have never tried it. Has any of you cash users attempted to do it?
We just paid off all of our credit card debt this month. YAY!!!!!!!! We were stupid and young and really racked up the debt. We pulled from an IRA account to pay some of it off, stopped using them, paid what we could each month, and then paid the what was left off with our tax refund. The only debt we have now are student loans and our mortgage. It feels terriffic!!! We won't be using the credit cards at all now unless there is a real emergency that requires more money than we have. Eventually, I think we might put all of our Costco purchases on our AX (we get money back to use at Costco each year when we do this) and then pay it in full each month, but it will be a long time before we do this. That idea is what got us into trouble the first time. Oh well, big lesson learned. Fortunately, we have very good credit.
Now, we're working on saving somewhere between $5-10K for an emergency/savings fund, and saving up for our next trip to Maui, then Manhattan, then remodeling the condo. I can't tell you how great it feels to not have any more credit card debt.
We just paid off all of our credit card debt this month. YAY!!!!!!!! We were stupid and young and really racked up the debt. We pulled from an IRA account to pay some of it off, stopped using them, paid what we could each month, and then paid the what was left off with our tax refund. The only debt we have now are student loans and our mortgage. It feels terriffic!!! We won't be using the credit cards at all now unless there is a real emergency that requires more money than we have. Eventually, I think we might put all of our Costco purchases on our AX (we get money back to use at Costco each year when we do this) and then pay it in full each month, but it will be a long time before we do this. That idea is what got us into trouble the first time. Oh well, big lesson learned. Fortunately, we have very good credit.
Now, we're working on saving somewhere between $5-10K for an emergency/savings fund, and saving up for our next trip to Maui, then Manhattan, then remodeling the condo. I can't tell you how great it feels to not have any more credit card debt.
Congratulations! Way to go! I hope more and more people follow the same philosophy of saving up before purchases, and keeping/saving up an emergency fund. Good Job!
Tore up all cards after we paid them off. We only use A.E for the points and pay the bill off every month. Feels so good to be debt free.
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