Comments on: Do You Consider Credit Cards an Asset or a Liability? http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html Bridging the gap between saving money and investing Tue, 24 Nov 2009 22:38:31 -0800 http://wordpress.org/?v=2.8 hourly 1 By: Topwaystosave http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-381446 Topwaystosave Sat, 02 Aug 2008 19:58:20 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-381446 A credit card can be an incredible asset as long as it's used responsibly. I never have to carry large amounts of cash. If a credit card is lost or stolen you are protected. You can earn miles and rewards for using a card versus cash. You can have multiple bills paid through it and then just pay one online payment to cover the credit card. Credits cards are definitely an asset, but just like some people shouldn't handle sharp objects some shouldn't have credit cards either. A credit card can be an incredible asset as long as it’s used responsibly.

I never have to carry large amounts of cash. If a credit card is lost or stolen you are protected. You can earn miles and rewards for using a card versus cash. You can have multiple bills paid through it and then just pay one online payment to cover the credit card.

Credits cards are definitely an asset, but just like some people shouldn’t handle sharp objects some shouldn’t have credit cards either.

]]> By: Cindy M http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-365676 Cindy M Fri, 18 Jul 2008 10:44:07 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-365676 Unless the individual can handle and not abuse credit early on, it just spells disaster. Actually, that should be said of money in general. I was "working" from the time I was a kid, babysitting, chores, always had change for goodies when my friends didn't. I attended a vocational type high school where we worked 2 weeks, went to school 2 weeks during junior/senior years, so I had my own car and paid my own car insurance from the age of 16 on. I had credit cards early on but was always scared to death of incurring much debt, so they'd get paid off pretty quickly. I have the attitude even now that credit cards are useful only for emergencies/travel and nothing else, and I'm glad I feel this way. Better you do without if you can't pay cash outright but tell that to younger people. Unless the individual can handle and not abuse credit early on, it just spells disaster. Actually, that should be said of money in general. I was “working” from the time I was a kid, babysitting, chores, always had change for goodies when my friends didn’t. I attended a vocational type high school where we worked 2 weeks, went to school 2 weeks during junior/senior years, so I had my own car and paid my own car insurance from the age of 16 on. I had credit cards early on but was always scared to death of incurring much debt, so they’d get paid off pretty quickly. I have the attitude even now that credit cards are useful only for emergencies/travel and nothing else, and I’m glad I feel this way. Better you do without if you can’t pay cash outright but tell that to younger people.

]]> By: Johnny Canuck http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-364495 Johnny Canuck Thu, 17 Jul 2008 01:24:11 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-364495 Get real, everyone! Credit cards are a wonderful asset for the disciplined and a woeful liability for the weak. To hold a credit card means one holds the capacity to purchase NOW when we may only have (or choose) to exercise a FUTURE ability to pay for the purchase. You and I – all of us - know full well what we’re getting into when we "charge now, pay later". So if later you don't pay off the debt in full at the end of the month, then suck it up and quit whining when the CC company charges you the interest they told you in advance that they would - and to which you agreed. You knew full well that would happen. Take some responsibility, you financial weaklings! Thanks for listening. Get real, everyone! Credit cards are a wonderful asset for the disciplined and a woeful liability for the weak. To hold a credit card means one holds the capacity to purchase NOW when we may only have (or choose) to exercise a FUTURE ability to pay for the purchase. You and I – all of us – know full well what we’re getting into when we “charge now, pay later”. So if later you don’t pay off the debt in full at the end of the month, then suck it up and quit whining when the CC company charges you the interest they told you in advance that they would – and to which you agreed. You knew full well that would happen. Take some responsibility, you financial weaklings!
Thanks for listening.

]]> By: Robert http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-364481 Robert Thu, 17 Jul 2008 00:57:13 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-364481 No way are they and asset. When we stopped using the one credit card we paid off each month we no longer got the airline miles. But, we actually spent less since we actually had to have the money when we purchased something. Made us think more about the purchase whether it was the latest electronic gizmo or eating out. There is life after credit cards. Now debit cards give points too. But lets be honest. The banks are not giving anybody anything for free. Credit card and consumer debt free. Try it, you might like it. If being debt free doesn't fit your style, its easy enough to get some more debt. No way are they and asset.
When we stopped using the one credit card we paid off each month we no longer got the airline miles.

But, we actually spent less since we actually had to have the money when we purchased something. Made us think more about the purchase whether it was the latest electronic gizmo or eating out.

There is life after credit cards. Now debit cards give points too. But lets be honest. The banks are not giving anybody anything for free.

Credit card and consumer debt free.
Try it, you might like it. If being debt free doesn’t fit your style, its easy enough to get some more debt.

]]> By: Steve http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-363545 Steve Tue, 15 Jul 2008 19:07:44 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-363545 They are the greatest financial asset aside from discipline and thoughtful spending. Their statements consolidate my expenditures for easy evaluation at the end of the month. For items not delivered at the time of payment, a credit card allows me to pay without risk. The float between when I incur the credit and when I pay it off at the next monthly billing garners me a profit. In 26 years I have paid not one penny of interest while realizing thousands of dollars of benefits from using my credit card. That is an asset indeed. Thank you Citi. They are the greatest financial asset aside from discipline and thoughtful spending. Their statements consolidate my expenditures for easy evaluation at the end of the month. For items not delivered at the time of payment, a credit card allows me to pay without risk. The float between when I incur the credit and when I pay it off at the next monthly billing garners me a profit.

In 26 years I have paid not one penny of interest while realizing thousands of dollars of benefits from using my credit card. That is an asset indeed. Thank you Citi.

]]> By: Joshua http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-363445 Joshua Tue, 15 Jul 2008 16:27:27 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-363445 Credit cards are a payment utility that can yield you nice rewards if used right. If I am diligent, why not pay for my everyday needs with a credit card and have it pay me back later? It just doesn't make any sense not too. Credit cards are a payment utility that can yield you nice rewards if used right. If I am diligent, why not pay for my everyday needs with a credit card and have it pay me back later? It just doesn’t make any sense not too.

]]> By: Hilary http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-363412 Hilary Tue, 15 Jul 2008 15:40:49 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-363412 I recently opened a new credit card, and I was shocked at how aggressively they pushed the "Payment Protection Plan" - that is, super-expensive and not-worth-it insurance on the balance, at a pretty penny of $1.50 per $100 in the balance. I consider myself educated and credit-savvy, and I still got confused during the phone call and almost accepted it. "Let's get started!" the lady on the phone cried. "Uhh... get started with what? Is this even optional?" I can only imagine for someone who has just entered the credit-card world, they would certainly accept this "protection", which is basically an extra fee for carrying a balance (as if 30% interest isn't fee enough). Predatory lending, indeed. Maxed Out is fantastic. Be prepared to cry :(. I recently opened a new credit card, and I was shocked at how aggressively they pushed the “Payment Protection Plan” – that is, super-expensive and not-worth-it insurance on the balance, at a pretty penny of $1.50 per $100 in the balance. I consider myself educated and credit-savvy, and I still got confused during the phone call and almost accepted it. “Let’s get started!” the lady on the phone cried. “Uhh… get started with what? Is this even optional?”

I can only imagine for someone who has just entered the credit-card world, they would certainly accept this “protection”, which is basically an extra fee for carrying a balance (as if 30% interest isn’t fee enough). Predatory lending, indeed.

Maxed Out is fantastic. Be prepared to cry :( .

]]> By: david http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-363335 david Tue, 15 Jul 2008 13:42:35 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-363335 @ merch I have to disagree. The difference is that you can gain things with a credit card (protection, bonus money, etc) where you can't with a check or a wire transfer. You can also pay a lot to use a credit card if you don't pay it off. Yes, it is a form of payment, but the way you use the payment can give you an advantage or cost you. @ merch

I have to disagree. The difference is that you can gain things with a credit card (protection, bonus money, etc) where you can’t with a check or a wire transfer. You can also pay a lot to use a credit card if you don’t pay it off. Yes, it is a form of payment, but the way you use the payment can give you an advantage or cost you.

]]> By: Lori http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-363331 Lori Tue, 15 Jul 2008 13:34:39 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-363331 Recently they were an asset. My husband and I moved across the US for a new job, and we used an introductory card (0% for 1 year) to pay for the moving bills. We've already paid it off and got an extra $150 for all the money we put on it. We are now very careful how we use it, so that it won't become a liability in the future. Recently they were an asset. My husband and I moved across the US for a new job, and we used an introductory card (0% for 1 year) to pay for the moving bills. We’ve already paid it off and got an extra $150 for all the money we put on it. We are now very careful how we use it, so that it won’t become a liability in the future.

]]> By: merch http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html/comment-page-1#comment-363297 merch Tue, 15 Jul 2008 12:16:26 +0000 http://www.savingadvice.com/blog/2008/07/15/102203_do-you-consider-credit-cards-an-asset-or-a-liability.html#comment-363297 Credit cards are never an asset or a liability. They are just a form of payment. Is a check an asset, a wire an asset, a debit card transaction? No of these are assets or liabilities just froms of payments. Credit cards are never an asset or a liability. They are just a form of payment. Is a check an asset, a wire an asset, a debit card transaction? No of these are assets or liabilities just froms of payments.

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