Quote:
|
Originally Posted by jeffrey
If I have a 0% or a cash back credit card, I'm saving money: If you have a credit card that has 0% interest you can be saving money if you already have the money to pay for the items purchased and are keeping that money in an interest bearing account. If you don't - and especially if you don't have the money to pay off the credit card when the 0% interest term is over - you're not saving money. You are merely delaying payment on the items.
If you have a credit card that gives cash back, you can be saving money if you pay off the balance each and every month and there is no yearly fee for the card. If you carry a balance, you lose any savings from the cash back to interest charges.
|
Some credit card statistics people should be aware of when talking about their 0% interest or cash back cards.
-
The amount the average American family pays annually in credit card interest: $1,100
-
Credit card industry revenue generated by late fees in 2002: $7,300,000,000
Do you really think McDonald's started accepting credit cards (and the additional fees they incur) because it was more convienent for their customers? C'mon now, you're smarter than that
-
People using credit cards in fast food restaurants spend up to 50 percent more than when they pay cash