Are CCs worth the hassle?

[disneysteve]

I think it's a shame too many people are scared of credit cards whereas a proper education at a young age is really what is more needed for people to stay out of trouble.

Absolutely. I sat my daughter down a couple of years ago and gave her a detailed lesson about how credit cards work and they are to be used (and not used). I believe she fully understands the consequences of making a purchase with a card and what happens if she doesn't pay it in full each month. I used an online calculator to run different scenarios showing the total cost over time if you only pay the minimum, somewhat more than the minimum or the full cost right away. She isn't of age yet to have/need a credit card, but when it is time for her to get one, we will review those lessons in detail.

[Slug]

CC's exist not for people like Steve or MonkeyMama or me, but for all those folks that carry a balance and live beyond their means. I charge everything I possible can to maximize the rewards, but I'm never buying beyond what I would normally buy.

One other CC advantage I think not mentioned yet is the float. If I buy the 4k flat screen on my debit card, the cash comes out right away, and I'm no longer gaining interest. If I buy it on the CC, the cash stays in my account making $ for me for quite a while longer. If you care enough to frontload your purchases at the front of your billing cycle, you can get a lot of "free" interest beyond the CC rewards everyone has already mentioned.

[LivingAlmostLarge]

Considering I got my first CC at 12 or 13, before high school, and I'm 29, I've used CC for almost 17 years at least successfully without a late fee or % ever.

So what'd I use it for? Well I bought my school clothes, etc. I had a checking account for years to learn how to budget. I had to help my mom pay bills to learn. And when I left home at 16 I was very responsible with my money and I had started working at 14.

I think education is the most important thing. Educating people on how CC work. I see so many people even those who get out of debt here are still blaming CC. Was it really the CC companies?

It's like blaming the car companies for making you buy a car financed. No one calls car dealers snakes, but they call CC companies. I think people like to shift blame on who caused them to "overspend".

Like CC, how many people can really afford their cars?

[ActYourWage]

"I think education is the most important thing. Educating people on how CC work. I see so many people even those who get out of debt here are still blaming CC. Was it really the CC companies?"

Good point.

It is like blaming McD's for being fat.

I am not blaming CC companies, just people that misuse them(like the 4K I charged one time). Misuse of anything can lead to problems.

[disneysteve]

Like CC, how many people can really afford their cars?

I've said before, many people don't look beyond the monthly payment. If they can handle that, they're happy. They don't care if that payment is for 2 years or 5 years or 7 years. They feel the car is affordable if the payment is affordable.

Not long ago, someone in my office was talking about getting a new car. Her reasoning was that the payment would be the same as her current payment. She ignored the fact that she was 3 years into the current loan and in 2 more years it would be paid off, where if she bought the new car, she'd be starting the clock over again and be locked into payments for another 5 or more years. I just shake my head and keep my mouth shut because I know people won't like what I have to say.

[maat55]

I think people who have good control over their spending habits and can pay their bills timely are good candidates for using CC's well. Those who struggle to pay their bills should stay away from them, it's that simple.

Most Americans live paycheck to paycheck and only worry about whether it is going to rain on the golf course. (yours truly past tense) Until you take your personal finances seriously, keep it simple.

[Snave]

I think people who have good control over their spending habits and can pay their bills timely are good candidates for using CC's well. Those who struggle to pay their bills should stay away from them, it's that simple.

Most Americans live paycheck to paycheck and only worry about whether it is going to rain on the golf course. (yours truly past tense) Until you take your personal finances seriously, keep it simple.

Don't tell me it is going to rain on the golf course! I am squeezing 9 in this evening.

[maat55]

Don't tell me it is going to rain on the golf course! I am squeezing 9 in this evening.

Where I live, you will wish it was raining. 101 today and humid.

[ActYourWage]

Don't tell me it is going to rain on the golf course! I am squeezing 9 in this evening.

I am doing the same thing!