Credit Card-Good thing or Bad thing?

cars · Post by **cars** » Wed Oct 11, 2006 7:00 am

So the almighty "Credit Card", is it a blessing or really a disaster in disguise?

It makes it so convienent to buy things right there on the spot, even when you don't always have the money for it!

So is the bargain really a bargain when you can't afford it, & then you wind up having to pay tons of interest on it?

Galbally · Post by **Galbally** » Wed Oct 11, 2006 7:03 am

Like so many things in life, its not what you have, its what you do with it that makes all the difference. :rolleyes:

SuzyB · Post by **SuzyB** » Wed Oct 11, 2006 7:06 am

I love them but the bank that provides them don't love me :-1 :-1 :-1

CARLA · Post by **CARLA** » Wed Oct 11, 2006 7:16 am

Evil but I have them and wish I didn't..

Ocnbrz · Post by **Ocnbrz** » Wed Oct 11, 2006 7:19 am

Having a credit card is nice for travel, renting cars and such or buying that "bargain", but if you don't pay it off in a timely manner those finance charges can cost you way more than you saved. If you don't manage your cash well you probably won't do much better with credit and in the long run that can cost you lots of money. Money you could have spent on you instead of the finance company.

Bez · Post by **Bez** » Wed Oct 11, 2006 7:52 am

Credit Card-Good thing or Bad thing?

Depends how much will power you've got and how organised you are.....

Good for those 'emergency ' situations when you need some money quickly. Bad if you don't pay them up before the interest kicks in.

Obscene the amount of credit they allow people and in my view pretty irresponsible.....

I have one but it is all paid up now and I hope I never have to use it again.

Marie5656 · Post by **Marie5656** » Wed Oct 11, 2006 7:53 am

Depends on whose hand the card is in. I, for one, am not a good candidate to hold a credit card and not use it. It seems to be whispering "Use me...use me".

I do not mean to be flip about my answer, as this is really serious. This has caused me alot of issues in my marriage.

I think for a person who can be responsible, and only use it for emergencies, or within thier set budget, then it would be fine. Otherwise, it is not good for a person like me.

Bez · Post by **Bez** » Wed Oct 11, 2006 7:54 am

Hamster wrote: I don't use them..everything I have is mine and paid for; and what I can't afford I don't get.

It's my experience that when you need them you cant really afford what you want anyway...ie those than can afford to pay the bill each month generally don't need them..

That's the best policy Hammie IMO........people succumb to the pressure of owning 'stuff' far too easily.

Bez · Post by **Bez** » Wed Oct 11, 2006 8:05 am

Hamster wrote: Thanks Bez...Believe me.. I lived in a situation where my ex had 4 on the go at once..not good!

I wont have them in the house now..can't stand them..still paying them!!

I think men are the worst culprits.

My husband used them far too much....I know he owed a lot before we sold our house and went our separate ways....I wonder how much money he's got left now :-5

My son told me that he'd bought a motorbike....the first of many I suspect.

I've had to spend a bit to furnish my new home, but I've bought self assembly furniture in the sales....HOmebase, Focus and Ikea have 'done me well'.

. Most expensive thing I've had to buy is a Fridge freezer.

Bill Sikes · Post by **Bill Sikes** » Wed Oct 11, 2006 8:09 am

cars wrote: So the almighty "Credit Card", is it a blessing or really a disaster in disguise?

It makes it so convienent to buy things right there on the spot, even when you don't always have the money for it!

So is the bargain really a bargain when you can't afford it, & then you wind up having to pay tons of interest on it?

I've got one... I last used it oh, a year ago? Two years ago? When you can't

afford something, and have to pay interest, then the bargain you might have

had is not so good!

In the UK, there are other factors, positive and negative, that apply to credit

cards.

a) Some places add a charge if you use a credit card to pay - they are, after all,

charged by the credit card company, and pass the cost on to the consumer;

b) If you buy with a credit card, then under various laws[1], you have extra

safety, as if you have problems with the item you have comeback against

both the seller, and the credit card company (e.g. if the seller "goes bust").

c) Credit card companies may charge a fee, whether of not you use the card.

d) Credit card companies organise "incentives" to make you use their card.

e) If your card is stolen, your liability is strictly limited (£50 ISTR).

[1] Section 75 of the Consumer Credit Act 1974.

N.B. certain cards ("charge cards") are not covered by this Act, so you have

no protection if you have one oif these. Examples: American Express. Diner's

Club (another disadvantage is that hese are often not accepted by sellers).

Bez · Post by **Bez** » Wed Oct 11, 2006 8:17 am

Hamster wrote: A lot of my stuff was bought here second hand...When I split finances didnt allow all new stuff and I needed a lot with 3 kids.

But at least I know its all paid for

Good on you Hammie....:-6

I bet you've got a lovely warm and cosy home that reflects your nature. :-4

minks · Post by **minks** » Wed Oct 11, 2006 8:52 am

Have one for emergancies. Paid it off with a loan with a lower interest and easier to pay the loan and have put the CC far far away from my hands.

cherandbuster · Post by **cherandbuster** » Wed Oct 11, 2006 8:57 am

I only have one credit card and I do use it quite a bit.

But I've never *not* paid the balance in full every month.

I've always been good with money. I'm too logical and rational to spend money that I don't have.

But I really don't see the need for any more than one card. It does the job for me. :-6

minks · Post by **minks** » Wed Oct 11, 2006 9:00 am

cherandbuster wrote: I only have one credit card and I do use it quite a bit.

But I've never *not* paid the balance in full every month.

I've always been good with money. I'm too logical and rational to spend money that I don't have.

But I really don't see the need for any more than one card. It does the job for me. :-6

yep me to thankful I only have one card, and have not given into the temptation of another.... card that is

cars · Post by **cars** » Wed Oct 11, 2006 12:04 pm

It's very reassuring to see that people here are saying that they treat Credit Cards responsibly. Unfortunately, one of my friends does not! As both he & his wife have several credit cards each. And they each use them to no end! If they see it, they want it, they buy it, end of story! Not only do they want to keep up with the Joneses, they want to be & stay ahead of them! I keep telling them that the Credit Card companies just love them. Since all they do is pay the "minimum" monthly amount on all the cards. The "minimum", which doesn't even cover the entire interest charges, so they are actually paying interest, on their interest charges! They will never pay off those cards!!!:wah:

I myself have two cards, American Express, & Visa- used for those establishments that don't accept AE. I treat them both responsibly, & pay the entire amounts monthly.

cherandbuster · Post by **cherandbuster** » Wed Oct 11, 2006 12:18 pm

cars wrote: I myself have two cards, American Express, & Visa- used for those establishments that don't accept AE. I treat them both responsibly, & pay the entire amounts monthly.

That's the way to do it, my good friend Cars

If I piled up debt on my credit cards, I would *not* be able to sleep at night.

How can people do that and carry on without a care in the world?

I think I was born responsible! :p

cars · Post by **cars** » Wed Oct 11, 2006 12:32 pm

cherandbuster wrote: That's the way to do it, my good friend Cars

If I piled up debt on my credit cards, I would *not* be able to sleep at night.

How can people do that and carry on without a care in the world?

I think I was born responsible! :p

You know cher, after thinking about it here, & writing about it, my friend does lead a better life then most. They want for nothing & have it all! So they don't really "own it", so what, is that really so bad? :-2 They just will pay for it until the day they die. Maybe they do have the right idea! :-3

cars · Post by **cars** » Wed Oct 11, 2006 3:52 pm

Pinky wrote: It's not so bad until all of a sudden you can't pay it off due to losing your job or long term illness, etc etc. Then you're in the crap!

Right Pink, but there are some people that like to live "one-day-at-a time"! They don't seem to worry about tomorrow. If they live long enough to loose their job, or get long term illness, they think they'll face it/if when it comes. Some people can still sleep like a baby, even knowing that they owe a ton of money to creditors! :wah: (Wish I could be like that)

Erinna1112 · Post by **Erinna1112** » Wed Oct 11, 2006 4:17 pm

Someone mentioned renting cars, travel, etc...I can do - and have done - all those things with my debit card. I've booked hotel rooms, purchased airline tickets, rented cars with it. As for that "bargain"...studies show that people spend 12-18 percent more with plastic than they do with cash. Why do you think credit card companies offer rewards points, airline miles, cash back? Because it's profitable. They don't do it because they like you. They do it because their sole purpose for existence is to separate you from as much of your money as they can.

It's not a bargain if you wouldn't have bought it with cash, IMO. I use cash most places. I have envelopes that I sort my cash into - when the grocery envelope is empty, well, I live off of what's in the cupboard until it's time to go get more money. I have a budget that tells me exactly how much goes into each envelope each month, and that's what I do.

This kind of thinking is what enabled me to dig myself out of $24,000 in (mostly) credit card debt in eighteen months after I got divorced, and what has allowed me to survive a nearly nine-month layoff with basically no income. I kinda like it, myself

cars · Post by **cars** » Wed Oct 11, 2006 4:22 pm

Erinna1112 wrote: Someone mentioned renting cars, travel, etc...I can do - and have done - all those things with my debit card. I've booked hotel rooms, purchased airline tickets, rented cars with it. As for that "bargain"...studies show that people spend 12-18 percent more with plastic than they do with cash. Why do you think credit card companies offer rewards points, airline miles, cash back? Because it's profitable. They don't do it because they like you. They do it because their sole purpose for existence is to separate you from as much of your money as they can.

It's not a bargain if you wouldn't have bought it with cash, IMO. I use cash most places. I have envelopes that I sort my cash into - when the grocery envelope is empty, well, I live off of what's in the cupboard until it's time to go get more money. I have a budget that tells me exactly how much goes into each envelope each month, and that's what I do.

This kind of thinking is what enabled me to dig myself out of $24,000 in (mostly) credit card debt in eighteen months after I got divorced, and what has allowed me to survive a nearly nine-month layoff with basically no income. I kinda like it, myself

Kudos to you Dawn, you sure can be proud of yourself! Well done!

BabyRider · Post by **BabyRider** » Wed Oct 11, 2006 4:22 pm

Erinna1112 wrote:

This kind of thinking is what enabled me to dig myself out of $24,000 in (mostly) credit card debt in eighteen months after I got divorced, and what has allowed me to survive a nearly nine-month layoff with basically no income
True story people, I watched her do exactly that.

cars · Post by **cars** » Wed Oct 11, 2006 4:24 pm

BabyRider wrote: True story people, I watched her do exactly that.

Holy Cow, is it really you BR? How you doin?

Erinna1112 · Post by **Erinna1112** » Wed Oct 11, 2006 4:27 pm

I've learned that you can do anything with a debit card that you can with a credit card...except go into debt.

I have an emergency fund, as well, for those emergencies. The very LAST thing I want to do when stressing about the car, or the roof, or whatever emergency I'm experiencing is to go into debt, and add money worries to the stress.