I know how to use credit cards!

[Pansori]

Originally Posted by Hector

So you didnt add your SO to your cards, how about other accounts like checking and savings?

As of right now we keep our finances separate, that includes checking and savings. As a whole, we're pretty lax about money with each other. Neither of us are big spenders, and we're on the same page about debt, purchasing big ticket items, etc. He is moving in with me next month so things will probably change, but we still have no plans to mix our finances.

[Hector]

Originally Posted by Pansori

As of right now we keep our finances separate, that includes checking and savings. As a whole, we're pretty lax about money with each other. Neither of us are big spenders, and we're on the same page about debt, purchasing big ticket items, etc. He is moving in with me next month so things will probably change, but we still have no plans to mix our finances.

You guys are not married yet. Never mind.

[snafu]

Pansori: I've witnessed so many 'train wreck' relationships resulting from unmet expectations, I'm going out on a limb and suggesting you and DBF write up a small, informal agreement as to how conjoined bills will be paid, both sum and responsible person. It also helps to write commitment to household tasks [who does what]. One successful system seems to designate sums by percentage of income so that the person with the highest income contributes more. Example, each contributes 5% of income to Emergency Fund, 25% to rent/mortgage, 17% of income to food budget etc.

[marvholly]

Originally Posted by MonkeyMama

I don't personally distinguish cash, checks, debits, or credit payments. Money is money and I only buy that which I have the cash to pay.

I think this is the REAL crux of the matter here and I am an Oldster (almost 65) who VERY well remembers dealing w/ONLY cash, checks and individual store credit cards.

[disneysteve]

Originally Posted by MonkeyMama

I don't personally distinguish cash, checks, debits, or credit payments. Money is money and I only buy that which I have the cash to pay.

I'm the same way. I truly can't comprehend how someone could spend more with credit than with cash. Either you have the money or you don't. it doesn't matter how you pay.

Sometimes I don't decide how I'm paying until I get to the register. If I happen to have some extra cash on me, I may use it. Otherwise, I may use my credit card. Or I might remember that I have a prepaid debit card in my wallet that I got for doing a survey and I'll use that for all or part of the payment. None of that has anything to do with what I bought while shopping, though. I bought what I needed and wanted to buy, and could afford to buy.

The fact that so many people carry balances on their credit cards is baffling to me. I've said many times that I simply can't understand what goes through one's mind when making the decision to buy something that you know full well you can't afford. My mind just doesn't work that way.

[trirunner]

I think this might be the crux of the problem, Steve. I'm with you and just don't understand how I would spend more with a credit card then without one. I think in a very similar way those people who have credit card debt can't understand how someone with a credit card cannot get into debt. I can understand how they can think this way and and that's what causes my great frustration when they continually tell me that I'm going to regret having a credit card. Anyway, it's good to finally have found a place where credit cards are considered evil by everybody.

[Joan.of.the.Arch]

Card User, know thyself. If you can't handle it, don't. If you can, do so if you wish. No big deal.

My spouse and I have 62 years of credit card use between us and we've never paid any interest or fees for credit cards. (Ooh, I just made a typo that could be amusing: "dredit cards," I wrote.)

Actually there is a very large percentage of card users who pay off their charges every month. So the responses you've had here should not really be surprising. By far, not everyone gets into trouble with credit cards. Despite questions we often get here along the lines of "when did you first begin to pay off your CC debt?" racking up CC debt is not a rite of passage or anything like that.

[disneysteve]

Originally Posted by trirunner

I think this might be the crux of the problem, Steve. I'm with you and just don't understand how I would spend more with a credit card then without one. I think in a very similar way those people who have credit card debt can't understand how someone with a credit card cannot get into debt.

Exactly. Many people consider using a credit card for any reason to be "going into debt." Dave Ramsey does this. If you buy a gumball with a credit card, he would say you took on debt for that gumball.

I don't think that way. I realize that technically using a credit card is a form of debt as it is a short term loan, but as long as I have the cash on hand to pay that bill and do pay it in full at the end of the month, I don't think of that as debt. To me, it doesn't become debt until you don't pay the bill.

[howslife]

Not all of us are lucky enough to know how to use credit cards without getting into debt. I think they are evil!

[disneysteve]

Originally Posted by howslife

Not all of us are lucky enough to know how to use credit cards without getting into debt. I think they are evil!

I don't think there is any luck involved. Follow one very basic rule and you won't ever have a problem with a credit card. Never use it to buy anything that you don't already have the money for in your account. That way, when the bill comes, you can pay it in full. You won't ever have to pay interest. You won't ever go into debt.

Blaming the credit card for a problem caused by the user doesn't make any sense.

[Snodog]

I agree with person who said "know thyself".

If you find yourself not paying the full bill every month or spending more than you should then by all means get rid of the card.

For some people credit cards are the best thing since sliced bread and for others they are evil.

What I have a problem with is some of the anti people (Dave Ramsey) who say that credit cards are evil for everyone.

Dave Ramsey says if you play with snakes you are going to get bit. Well I've been "playing with snakes" for 25 years and have not gotten bit. Only free cash back!

Using credit cards is I guess technically going into debt. But if you pay off every month it is a loan at 0%. Actually with the cash back it may be more like a loan at -2%. Wish I had more loans like that.

[JoshuaHeckathorn]

Originally Posted by Snodog

What I have a problem with is some of the anti people (Dave Ramsey) who say that credit cards are evil for everyone.

Dave Ramsey says if you play with snakes you are going to get bit. Well I've been "playing with snakes" for 25 years and have not gotten bit. Only free cash back!

Using credit cards is I guess technically going into debt. But if you pay off every month it is a loan at 0%. Actually with the cash back it may be more like a loan at -2%. Wish I had more loans like that.

Amen to that. Well said.

[Coronet]

I'm the same as you and the rest of the responsible CC users. I charge only what I can pay in full at the end of the month and reap rewards points!

[carolan]

Like many of you on this subject,I have used credit cards for about 35 years. I have almost alwys paid off the balance very month. Over the years there were a few times when I got behind but this was short lived. I also use reward cards and we charge everything we can to the card for travel points.

In Canada, the credit card companies are now obliged to show us on every bill, how long it would take to pay off the balance if we only pay the minimum payment. That can be a shocker! Hopefully it will help some people to see the error of their overspending ways.

[disneysteve]

Originally Posted by carolan

In Canada, the credit card companies are now obliged to show us on every bill, how long it would take to pay off the balance if we only pay the minimum payment.

They do that here in the US as well.

[Pansori]

Originally Posted by carolan

Hopefully it will help some people to see the error of their overspending ways.

Hmm, maybe... but not necessarily. I think what gets a lot of people is seeing how much they can spend and how low the payment will be... it is kind of like when someone goes to buy a car, and they think they are getting an awesome deal because they put no money down and have these super low payments. Never mind that their loan is for 6 years or something ridiculous!

The other night I was on the phone for an hour and a half with a young customer who was trying to figure out the best way to literally max out his credit card on an international trip and still get away with paying the lowest amount. He gave me 6 scenarios (2 of which I had to remind him he would be going over his limit), and I crunched numbers until I finally said: "Look, in the end if you max out this card you're looking at at least $100 min payments."

He was thrilled! Partying his way across Europe for the summer was only going to cost him $100 a month? How can one ever pass up an offer like that?