Are CCs worth the hassle?

[ActYourWage]

Another issue is when two people are on the same account, like my wife and I. If we were using a debit card and I happened to go out and make a significant purchase not knowing that she had done the same, that could be a problem, but it wouldn't be with a credit card.

My wife and I too have one account but we don't go out and make significant purchases without discussing something of that magnitude.

[sweeps]

I would like to say that credit cards don't change spending habits, but for a majority of people they really do. If I'm being honest with myself, I know I spend more by using a credit card than I would if I had to use cold hard cash or a debit card.

Having said that, credit cards provide some very important protections that I would not want to go without, and the reward points are a nice bonus -- especially the 5% rewards for gas, groceries and drugstore purchases.

[disneysteve]

No that means I can't afford it now. My debit card will not take if I don't have the funds in my account.

If you only keep a small balance, you coule make a purchase with your debit card that goes through and then the next day, an outstanding check could clear and put you over your limit. Or you could make a purchase and across town your wife could be making a purchase. Maybe both will go through. Maybe one of you will get denied. If the purchase is something important, you could be in trouble if you don't have another means to pay.

With a credit card, you don't have those worries.

[disneysteve]

My wife and I too have one account but we don't go out and make significant purchases without discussing something of that magnitude.

Neither do we, but for folks who don't maintain a large balance or live paycheck to paycheck, it could be a problem. If there is only a couple hundred in the account and I decide to fill my tank on the way home not knowing that my wife went grocery shopping, one of us could have a problem.

[ActYourWage]

If you only keep a small balance, you coule make a purchase with your debit card that goes through and then the next day, an outstanding check could clear and put you over your limit. Or you could make a purchase and across town your wife could be making a purchase. Maybe both will go through. Maybe one of you will get denied. If the purchase is something important, you could be in trouble if you don't have another means to pay.

With a credit card, you don't have those worries.

I balance our checkbook daily and before the check clears, so I know pretty much to the penny what I have. I have the debt card, wife carries the budgeted cash for spending. If the purchase is something important, which is hypothetical, I would wait until I had the means to pay for it.

[ActYourWage]

Credit cards are not worth the hassle but for a very select few and I mean select few. They have ruined finances more than they have helped. To me they are a hassle.

[MonkeyMama]

I'm with Steve.

I don't see where the hassle comes in.

I much prefer the credit card. A debit card is a lot to keep track of. Also, there is not the same fraud protection.

I am actually pretty opposed to the credit card companies as a whole, so I struggle ethically if I should use a credit card. But the convenience can not be beat. So I keep using it because of the lack of hassle I find using a card.

I personally just don't find what is so difficult about charging what I have to spend, nothing more. & paying the bill when it arrives so as not to get ensnared in the late payment games the cards play. They want to play games, so I send my payment in 20 days early. But it still gives me much more flexibility and float than paying everything with cash.

[disneysteve]

If I'm being honest with myself, I know I spend more by using a credit card than I would if I had to use cold hard cash or a debit card.

Are you able to articulate why that is? I often read that, but I simply don't understand it. I buy what I buy. It doesn't matter how I plan to pay. If I fill up my tank, it costs the same whether I pay cash or credit. If I go out to dinner, the meal costs the same amount regardless of how I pay. If I go to the grocery store, my shopping order costs the same amount either way.

What happens that makes someone spend more with a credit card?

[Ima saver]

I have never had a debit card and never will. Clark Howard advises against them. I keep very little in my checking account cause I want to earn interest. I pay my cc bill in full each month and have already gotten back $500 cash from Chase rewards.
My dh mostly uses the cc at home depot for building supplies.

[PrincessPerky]

What happens that makes someone spend more with a credit card?

Because of the overdraft/decline issue. when I wonder if I have enough in the account, usually I do, but having to find out, means I often do not buy it.

I might seem a bit mean but I think the issue is that I do not have a lot of discretionary spending CC or debit . I have between 50 and 100..and the question of exactly how much comes up EVERY time I want to splurge

Now if I have a CC I know I can go over the grocery budget and make up the difference (payday is Friday I can send less to the car if need be, and this could be a 75 splurge month)

If I use the debit card..nope can't do it, payday is Friday it is only Wednesday. Seriously when was the last time you were not sure if you had enough for a 5$ treat? prolly not since college. Those of us with smaller incomes wonder that a lot more frequently.

Now yes I know I could go around this by using last months surplus for this months treats...but it is a hassle, and assuming I can't afford it is cheaper.

Course if I just plain didn't want to spend money I might not have this problem, but I hate cooking. (eating out is my favorite splurge, next is convenience food)

Take this weekend, we are going to the discovery place (science center) I have to check the account first to see if we can eat out or if I have to pack, or if we can do a combo....if you went would you even need to check your entertainment budget for a 20$ question? Sure the cheapest option would make the most sense for someone broke, but I have my limits. (I hate packed lunches..packed snacks sure, but real food requires a stove IMO)

[SnoopyCool]

Are you able to articulate why that is? I often read that, but I simply don't understand it. I buy what I buy. It doesn't matter how I plan to pay. If I fill up my tank, it costs the same whether I pay cash or credit. If I go out to dinner, the meal costs the same amount regardless of how I pay. If I go to the grocery store, my shopping order costs the same amount either way.

What happens that makes someone spend more with a credit card?

For me, it was the fact that I knew there was a limit on my credit card more than what I had available, so I robbed Peter (my future) to pay Paul (what I wanted that day). I did this a lot in the past. I call it fiscal irresponsibility.

Now, I have reformed my habits and use my cc for everything that I can. Then I pay it off each month. It is an extremely gratifying feeling to be more responsible with money (not to mention the cc rewards!).

[SnoopyCool]

Also, I just put every cc transaction in the checkbook register, almost daily. That keeps me on top of what is going on.

[ActYourWage]

Are you able to articulate why that is? I often read that, but I simply don't understand it. I buy what I buy. It doesn't matter how I plan to pay. If I fill up my tank, it costs the same whether I pay cash or credit. If I go out to dinner, the meal costs the same amount regardless of how I pay. If I go to the grocery store, my shopping order costs the same amount either way.

What happens that makes someone spend more with a credit card?

I can, a few years ago I went to purchase a big screen TV (this was before I was handling money properly). Since I knew I had a $5,000 limit on a credit card, I spent $4,000 of it that night. I was $4,000 in debt in about 2 hours. It does hurt the majority of people more than it helps. If one has their money handled and can do CCs then they can do it.

I could NOT afford to buy the big screen tv that night, but because I thought I could handle the 'monthly payments' was one reason I did purchase it. Similiar situations probably occur every day, because they think they can afford the CC monthly payment.

[disneysteve]

Also, I just put every cc transaction in the checkbook register, almost daily. That keeps me on top of what is going on.

I think that's a great idea for folks who need to keep close tabs on their spending. You should do the same with debit card transactions.

PrincessPerky - I totally get your point and certainly the more wiggle room you have in your budget, the less "to the penny" you need to track your spending. As SnoopyCool says above, though, I think it is still possible to use a credit card when funds are tight because you can treat it like a debit card and record each transaction, deducting the charge from your balance. That way you always know how much is truly left in the account.

That method won't work for everyone and I would never suggest that everyone can manage using a credit card without getting into trouble. But the original post suggested that credit cards aren't worth the hassle and that's a premise that I'd have to disagree with. I got about $900 in rewards last year. I'd say that was worth it.

[Snave]

Are you able to articulate why that is? I often read that, but I simply don't understand it. I buy what I buy. It doesn't matter how I plan to pay. If I fill up my tank, it costs the same whether I pay cash or credit. If I go out to dinner, the meal costs the same amount regardless of how I pay. If I go to the grocery store, my shopping order costs the same amount either way.

What happens that makes someone spend more with a credit card?

DS, I agree with sweeps on the issue of using cash. I understand what you are saying in regards to having the money to pay the cc in full and not "spending" more than you would anyway. However, I will argue that most people will spend less if they use strictly cash. I am not talking a debit card, but actual dollar bills. Let's say you are in Orlando at a Disney park and you plan on spending $100 on your cc at one of the gift shops. If you use your cc, you will probably spend the $100. If you physically have to remove 5 twenty dollar bills from your wallet, you might not spend the whole $100. You might think about it a little longer and harder is all I am saying. Even though you have the money to pay it off, the actual act of giving cash "hurts " a little more and you spend less. You might have also recently seen this past week that several major airlines are going to cc's for in-flight purchases. In fact, one of them (can't remember which one from the article I read) said that since they started doing this, the average bill for drinks went up significantly. It is the same premise. Ask all of the fast food restaurants how much the average bill went up when they started accepting cc's.