Credit Card spending plan doesn't work for me

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Do you make all your purchases by Credit Card, then pay it off in full every month?

Poll ended at Sat Oct 24, 2009 5:16 am

Yes
8
57%
No
6
43%
 
Total votes: 14

DoingHomework
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Re: Credit Card spending plan doesn't work for me

Postby DoingHomework » Fri Mar 05, 2010 2:02 pm

Coach...

You should get up earlier and shop online with your credit card. It will help you build discipline <grin>

I don't think there is a "should" about how one uses credit cards. If someone wants to use the card, carry a balance, and pay interest then that is their business.

But I do think people should (there's that word) be consistent or at least recognize their own inconsistency. Many people pat themselves on the back for being frugal or saving money and then turn around and miss out on rewards (often cash) just because they choose to use their card a certain way.

Let's say you spend $30000 a year on things that could be put on a card. It is possible to get 2% or more rewards on cards now. That 2% would be $600 a year that one loses out on by avoiding the cards. I'm not saying anyone should use their cards for everything because some people don't have the self discipline to pay off the card every month. But to congratulate yourself for saving $5 a week by using coupons on groceries and then not recognizing the $600 you give up every year by paying cash for everything is inconsistent. It's like paying a $600 penalty every year for not having self discipline.

Vile Merchant
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Re: Credit Card spending plan doesn't work for me

Postby Vile Merchant » Sat May 29, 2010 7:30 pm

It's not just the rewards you're missing out on but also a 1-month interest-free buffer in your expenses. That's a months worth of wages that can sit in online savings EARNING interest while it waits to pay the CC bill in full.

partgypsy
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Re: Credit Card spending plan doesn't work for me

Postby partgypsy » Mon Jun 21, 2010 9:09 am

We do pay off our cc in full every month, but I do feel like I spend more money using a credit card. For example, buying something off Amazon, I don't have to think or check whether that amount of money is physically in checking to charge something, because the paying it off is sometime in the future. So it makes me lazy. If I used the debit, I would be like, there is only X amount in checking until I get paid next, I shouldn't spend any more money until I get paid, etc.

partgypsy
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Re: Credit Card spending plan doesn't work for me

Postby partgypsy » Mon Jun 21, 2010 9:12 am

I haven't checked recently, but I get about $300 in cash rewards from my cc every year. That's hard to turn down. I could probably earn more if I charged our gas and grocery on it, but those are my least favorite things to put on credit.


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