credit card's in wallets

[b3nx]

after the discussion what is in your wallet, i have noticed alot of people put credit card, now people get credit cards for ratings, emergency's, and really i guess if you can pay it off before the due date then go for it, but being on a forum on saving advice isnt it one thing you would try and not to have??

[sweeps]

It comes down to personality and spending habits. For people who have trouble controlling their spending when holding a credit card, then yes, they should stick to paying with cash.

For people who don't have a problem managing their credit, credit cards save money over cash because of the rewards. And frankly, using a credit card is safer than using cash or a debit card.

[reptile411]

I have only 2, a MasterCard and a Lowes card. When I kept them in my wallet they were always maxed out. When the credit limits were low this was not a problem but now the limit on each card far exceeds my monthly income so this became a problem. I now keep them at home or at best in my counsel and guess what? Now that they are not in my wallet I don't owe a dime to ether one of them. Every now and then I will use one just for the heck of it for a tank of gas or some flowers for the yard but that's it. My main reason for paying them off was because in the next month or 2 we are starting a major remodel on our house and I wanted all my credit cleared up and ready to go by then. I am not thinking I will have to use any credit as we have cash but if something comes up it makes a nice fall back.

[kork13]

Originally Posted by b3nx

after the discussion what is in your wallet, i have noticed alot of people put credit card, now people get credit cards for ratings, emergency's, and really i guess if you can pay it off before the due date then go for it, but being on a forum on saving advice isnt it one thing you would try and not to have??

that's sort of exactly the point... most people around here will advocate responsible use of credit cards--paying them off every month, not spending more than you can earn/afford. I've got 4 credit cards, use 2 of them, but never let a balance stick from month to month. That's really what's most important.

That said, however, as sweeps mentioned, some people are more comfortable only using cash. That's fine, whatever they've determined is the best method for them is great. You shouldn't be afraid or unwilling to use credit cards.... just know how to use them responsibly and they won't be an issue.

[boosami]

The two cards I carry and actually use are charge cards, and I absolutely have to pay them off at the end of the month. There are no financing charges because there is no option to carry the balance over. I also carry a normal credit card, but I have never used it. I only have it in case there is a rare situation where a retailer accepts VISA only (my charge cards are Amex and MasterCard). As far as I know, VISA does not offer a charge card option where you must pay in full at the end of the month. If they did, I'd happily apply for it.

[Joan.of.the.Arch]

I like to put one CC in my wallet and leave others at home. The reason is not financial. I leave others at home so that I will have fewer phone calls to make should the wallet get lost or stolen. I leave them at home so that my wallet will be slim to fit nicely in my pocket. Until recently, 99+% of my CC use was on a cash rewards card that I'd pay off monthly. But one unused card got cancelled, so now I use other cards once in a while to keep them active.

[MonkeyMama]

I earn 3% on all my purchases and credit card companies take care of fraud on the account.

Carrying cash & debit cards is risky, in my opinion. I prefer credit for this reason. I've never paid a dime to the credit card companies though.

[disneysteve]

Originally Posted by b3nx

being on a forum on saving advice isnt it one thing you would try and not to have??

Originally Posted by sweeps

For people who don't have a problem managing their credit, credit cards save money over cash because of the rewards. And frankly, using a credit card is safer than using cash or a debit card.

I agree with sweeps. For those of us who use CCs responsibly, they are a great tool to make your life easier, save you money and make your transactions more secure. In 2008, we earned about $1,000 in rewards from our cards. Why would I possibly want to give that up?

[KTP]

I pay off my CC each month and just recieved over $1200 back from last year's use. So I could have paid cash instead for all of the gas, groceries, dining purchases. Instead I wrote one check each month to the CC company for the full statement balance, paid 0% interest, and pocketed $1200.

I just did the math. $1200 > $0

If you are responsible enough to be looking online for advice on budgets and saving, you can be responsible enough to write one check a month. Plus CC is a bit safer than carrying hundreds of dollars in your wallet all the time.

[GREENBACK]

Credit cards are for those who have their financial house in order and know where their money is going. If you can't control your spending(if you're honest with yourself, you know this answer) you should not have a card of any kind..... even a debit card, IMO. It's so much different laying down a couple hundred bucks by counting out cash versus swiping a card that psychologically some can't grasp the concept that a card is real money.

I buy virtually everything on CC's and carry little cash. I sometimes have to make significant purchases for my job that I'm reimbursed for and there's no way I'd carry that much cash around. I don't get a reimbursment for lost or stolen cash!. If you lose cash or you get mugged(there are people that will watch for fat wallets) it's gone. A cc is convienient, less risky, and yes, there's the rewards part. For my situation cc's are great. If you are just learning to manage money stay with cold hard cash.

[LivingAlmostLarge]

No saving advice is for people to save money. How they do it is different.

I can blow through my $800 cash I "budget" on my credit card like water. No problems. I can't spend $800 on a credit card because I'm less likely to whip it out. Versus with a couple of $20 I couldn't tell you where the money went.

I made around $1800 last year in credit card rewards. Interest paid $0. So I guess I "worked" $1800 out of the system.

[Joan.of.the.Arch]

Originally Posted by GREENBACK

If you lose cash or you get mugged(there are people that will watch for fat wallets) it's gone.

I never thought about the fat wallet being a sign of high value contents. This is yet another reason for me to keep it slim.

[snowboardebater]

Used well, we all know credit card spending can get out of hand. But done the right way, credit cards are HEALTHY.

[asmom]

What sweeps said.