Virtual Credit Cards

[moneyangel73]

My real angel gave me some financial advice in which I give to you freely!

Stay clear of credit cards. They may be handy when you want something but you end up in tears with knee-deep in debt.

Why borrow from other people when you can borrow from yourself at 0% all the time and pay back what you borrow when you can. Just save some money set aside for the credit limit and keep this handy as cash or in the bank, and use in emergencies. You need to be strict with yourself when budgeting, keeping expenses less than income.

[instantinfo4you]

This is very true. Credit is designed to make you promise away money that isn't even yours yet. I have been going throught the Transforming Debt into Wealth program, and they really try to get you to understand that credit is your enemy. It also talks about how we have been brainwashed as a society into thinking that we need credit to live our lives. It's just not true people.

[sweeps]

Originally Posted by instantinfo4you

we have been brainwashed as a society into thinking that we need credit to live our lives.

Did you pay cash for your house?

[PRICEPLUS]

Sweepsplayer, I think the general gist of it is to avoid CCs like the plague. Hell, if you can pay cash for a house God Bless! Simple and sound advice there monkeyangel!

[disneysteve]

Originally Posted by moneyangel73

Stay clear of credit cards. They may be handy when you want something but you end up in tears with knee-deep in debt.

It drives me crazy when people automatically equate using credit cards with being in debt. I use my credit card nearly every day. Our total charges last year were in the neighborhood of $30,000. How much do we owe today? Zero, because we pay our bills in full each month. Credit cards give us a short-term 0% loan every single month. Not only that, but they pay us to use the cards in the form of rewards. Discover gives us cash back. Our Marriott Visa gives us free hotel stays. At the moment, we've got over 81,000 Marriott points, enough for up to 14 free hotel nites. Just this week, I redeemed my latest $20 from Discover.

It isn't the credit cards that are evil. It is people who use them irresponsibly that is the problem. Credit cards are a very valuable financial tool. Used properly, a credit card allows you to earn valuable rewards, get various extra services and earn additional interest on your money by keeping it in your account longer until the bill is due.

[jmjj215]

I enjoy the float I get using a credit card and then paying it in full each month. I also enjoy the occasional cashback bonus we get that equates to two weeks of groceries every few months.

[poundwise]

Credit cards are certainly not necessarily a path to "tears" and debt. Though it is true that they have been for many, it is also true that, to a large extent, this is due to personal irresponsibility.

I would add, however, that being responsible is not the only requirement for effective credit card management. You had better be pro-active. Similar to the idea of defensive driving, you must watch out for the other guy (the card issuer); sometimes more than others.

[rwillard]

Absolutely agree with poundwise and disneysteve. The operative word with credit card use is discipline. If you have financial discipline and take responsibility (ie, paying off your card balances religiously every month), instead of calling the credit card issuers "evil, the benefits of credit card use can be significant.

The real evil is financial irresponsibility by credit card users. The credit card issuers merely take advantage of this lack of discipline and financial irresponsibility.