how many people are currently in debt

[gertymac]

$170K mortgage (currently @ 4.75% but can +/- max of 1% every 2 yrs, up to 8%)
$42K in student loan debt (roughly half at 3.8% and half at 6.25%, but not yet in repayment and not accruing interest)


Nice to see how everyone else is paying down their debt!

[lovcom]

I just put a tank of gas on the Visa...so now I'm $31.48 in debt!

[Exile]

Originally Posted by lovcom

I just put a tank of gas on the Visa...so now I'm $31.48 in debt!

So why didn't you pay cash?

[Kris10Leigh]

Mortgage- just moved October 2.
car- $12,000 (my next target...if I DON'T pay more it will be paid off in a year and half)
CC- $0

[maat55]

Originally Posted by Exile

So why didn't you pay cash?

For the rewards check.

[disneysteve]

Originally Posted by Exile

So why didn't you pay cash?

Why would I pay cash and get nothing in return when I can pay by CC and get at least 1% back, sometimes as much as 5% back.

True that each time I use a CC, I am technically going into debt, but I've never considered that when talking about being in debt. As long as I pay the bill in full each month, I don't count that as debt.

[LuxLiving]

Because I spend more when I carry cash - being a junque' dealer there is always some garage sale or thrift store around calling me to spend on extraordinary intrinsic value that has gone unnoticed by someone else! Not all these places take plastic, so I'm less likely to buy more than I have storage space for before getting it onto the sales floor! If not these hidden treasures then there is always a bookstore calling my name. I'm like a heroin addict with cash.

With plastic, because of early training from parental units, I'm MUCH more likely to hold back.

IOW, all stereotypical financial 'nuggets' are not the same for everyone. "They" say people are less likely to spend cash and actually spend less using cash over plastic. Not me buddy!

AND, I like getting rewards and discounts for the things we normally buy w/our CCs. Right now my old faithful Discover card is giving me 5% back on our groceries. If they want to carry the cost of my groceries for a month (ALWAYS paid in full monthly) AND give me money back? I'm all for it.

[lovcom]

Originally Posted by Exile

So why didn't you pay cash?

Why would I pay cash?

I pay the cc off totally every month, and I love the convenience of paying just one bill per month, and keeping the cash in my wallet when I really need it.

Also the card provides me $$ back yearly, and I earn airline points too.

In addition, using and pay CC bill each month shows good on the credit report. Too meany good things come from credit card usage so long as one pays in full each month.

Also, using a credit card means you have MASSIVE LEVERAGE if you buy something and it doesn't work and the vendor does not want to refund or make good.

Also, using a CC means you have a record of that and ALL transactions in the form of a paper statement or electronic statement.

So tell me, how come you use cash? :-(

[disneysteve]

Originally Posted by LuxLiving

Because I spend more when I carry cash

IOW, all stereotypical financial 'nuggets' are not the same for everyone. "They" say people are less likely to spend cash and actually spend less using cash over plastic. Not me buddy!

Same here. Much easier to track everything when using a CC. Using cash, there is no uniform record of spending. You have to save all the receipts and log them somehow. With a CC, that gets done for me. In fact, Chase provides a year-end summary of all charges broken down by category. Very useful for financial planning and budgeting purposes.

[wincrasher]

I guess if you are a weak person, you may just overspend if it's made easy using a credit card. Studies bear that out.

But if you're a natural or newly reformed tightwad, then it doesn't matter.

The record-keeping it great and really shows you where your money is going - can't deny the printout.

[Exile]

I can appreciate the advantage of earning points from using a credit card, but I have a hard time believing that when most people go shopping with a credit card that they limit themselves to buy only what they need. Merchants and card lenders depend on shoppers' yielding to temptation to overspend.

I carry my credit card and debit card with me in case of a true emergency. Because I live outside the U.S. a big disincentive for me to use them is that I would get whacked with a 3% currency conversion fee by my card issuer which would more than offset my rewards points. So by carrying cash instead--and not very much due to safety concerns, my shopping is limited to the money that I have on hand.

Points? Cash back? Who needs them? When you don't use plastic, the items that you once thought are must-haves often become non-essentials. And you wind up with a 100% discount by not purchasing them in the first place.

[lovcom]

Originally Posted by Exile

I can appreciate the advantage of earning points from using a credit card, but I have a hard time believing that when most people go shopping with a credit card that they limit themselves to buy only what they need. Merchants and card lenders depend on shoppers' yielding to temptation to overspend.

I carry my credit card and debit card with me in case of a true emergency. Because I live outside the U.S. a big disincentive for me to use them is that I would get whacked with a 3% currency conversion fee by my card issuer which would more than offset my rewards points. So by carrying cash instead--and not very much due to safety concerns, my shopping is limited to the money that I have on hand.

Points? Cash back? Who needs them? When you don't use plastic, the items that you once thought are must-haves often become non-essentials. And you wind up with a 100% discount by not purchasing them in the first place.

I think most people are much more likely to spend that wad of cash burning a hole in their pocket. For me personally, it doesn't matter. And to use cash means you have NO LEVERAGE when you buy that bum TV or PC or other high priced electronic gizmo or gadget. Cash shows no audit trail.

There are just too many reasons to use the credit card. But to be fair, I know there are those that are vulnerable to getting into trouble when using credit cards because one does not "feel" the loss as much with a card then if they had paid cash...but that is them, not me :-)

[lovcom]

Originally Posted by Exile

Points? Cash back? Who needs them?

You mean you don't want a free round trip ticket to Europe? Free car rentals, upgrades, etc?

[ActYourWage]

Originally Posted by lovcom

You mean you don't want a free round trip ticket to Europe? Free car rentals, upgrades, etc?

Econ 101 -- There's no such thing as a free lunch.

[Exile]

Free round trips, lovcom? You mean you really didn't have to spend anything to qualify for those goodies? Wow! Where can I get a deal like that?

[Exile]

Originally Posted by lovcom

I think most people are much more likely to spend that wad of cash burning a hole in their pocket. For me personally, it doesn't matter. And to use cash means you have NO LEVERAGE when you buy that bum TV or PC or other high priced electronic gizmo or gadget. Cash shows no audit trail.

There are just too many reasons to use the credit card. But to be fair, I know there are those that are vulnerable to getting into trouble when using credit cards because one does not "feel" the loss as much with a card then if they had paid cash...but that is them, not me :-)

Assuming that you're referring merchandise disputes, lovcom, if I use my U.S. issued credit card for purchases outside the country, I have no leverage. That protection applies only to items bought in the U.S.

I found this out the hard way when I bought a cell phone that turned out to be defective. The store wouldn't accept a return (customer satisfaction is an almost unknown concept here in the Philippines), and I had to fight tooth and nail for the card issuer to issue a credit which they finally did but only as an exception to policy. with the understanding that the adjustment was a one-off.

[lovcom]

Originally Posted by Exile

Assuming that you're referring merchandise disputes, lovcom, if I use my U.S. issued credit card for purchases outside the country, I have no leverage. That protection applies only to items bought in the U.S.

I found this out the hard way when I bought a cell phone that turned out to be defective. The store wouldn't accept a return (customer satisfaction is an almost unknown concept here in the Philippines), and I had to fight tooth and nail for the card issuer to issue a credit which they finally did but only as an exception to policy. with the understanding that the adjustment was a one-off.

Your case is a rare exception because most American card holders use their cards in the USA. Perhaps you should buy state side? If there's a problem, a relative can do some of your bidding, or better yet, ask a state side relative to make the purchase on their card and you reimburse him/her.

[Exile]

Originally Posted by lovcom

Your case is a rare exception because most American card holders use their cards in the USA. Perhaps you should buy state side? If there's a problem, a relative can do some of your bidding, or better yet, ask a state side relative to make the purchase on their card and you reimburse him/her.

I received my U.S.-issued Mastercard years before I moved to the Philippines, and after all, aren't these cards supposed to be convenient for making purchases worldwide? Why on earth would I have a Stateside relative do my shopping for me when almost anything that I need to buy is right here in Metro-Manila, and where most major retailers accept credit cards? That being said, I still do most of my shopping here with cash.

[lovcom]

Originally Posted by Exile

I received my U.S.-issued Mastercard years before I moved to the Philippines, and after all, aren't these cards supposed to be convenient for making purchases worldwide? Why on earth would I have a Stateside relative do my shopping for me when almost anything that I need to buy is right here in Metro-Manila, and where most major retailers accept credit cards? That being said, I still do most of my shopping here with cash.

You need to tune in! ;-)

The reason I speak of a state-side relative is so that if your state-sdie purchase goes south, you have recourse because the store you purchased the product at is an American store and they will be forced to issue a refund....and of course your card works all over the world! But you yourself said that stores in the Philipines don't exactly work the same way stores do in the USA....here you can get your money back if you use a card. Of course even in the USA some stores will post a sign "all sales final" but even then, if one uses a credit card, they can still get the refund and often times it is out of the stores hands...AMEX, VISA, MC will force the refund regardless....I've been there a few times.

[Nodebt13]

what tools can you share so we teach other people to do the same.

To stay our of interest so all our Money goes to principal.