Credit Card debt

[rie'smom]

My name is rie'smom and I have CC debt-usually about 10-15K. However, we get dividend payments throughout the year and I pay off the debt when the money arrives and then I'm back to $0.

 

[Bending Branch]

We have a mortgage and two car payments but no credit card debt. We use our credit card for everthing to get the miles but pay it off each month, which usually gives us a couple of free airline flights each year to go to WDW. My wife and I both work so that helps in not accruing any credit card debt.

 

[U2_rocks!]

C. Some people (like me) have no credit card debt but have other debt.

Yup, that would be me! We have a big mortgage - we didn't go the "starter home and then expand" route - we bought our "forever" house early on, but it was a huge financial sacrifice. It's been worth it, though.

We have charge cards at various stores, and sometimes those balances do run up - but the interest on those is so much less than on our credit cards, there is no conterst about which will get paid! We try not to do it, but there are some months when lots of large expenses fall on you all at once, and there just isn't enough to pay all the bills in full. Our savings are tied up in things that aren't immediately liquid - that helps me not to spend the savings! And anyway, we've done a poor job at savings over the past few years because our costs have been so high! Anyway, things have improved, and we have a little more disposable income now, so I expect that we'll end up hardly ever carrying balances (I hope).

And yes, we did go to WDW this year when we really couldn't comfortably afford to go. But it was a perfect year for it for many reasons, and spread the cost out as much as we could. My parents also provided the accomodation and we used airmiles for 3 of the tickets. So it was as inexpensive as we could possibly make it. We're not going again until 2010, for financial reasons.

I'm definitely not bragging about some "perfect" financial situation - this thread was about credit card debt, not other debt, and I was simply stating my position on credit cards. Doesn't mean I don't have other debt!

 

[Banshee]

We have minimal CC debt it is about 600.00 right now. But we have very HIGH taxes even though it is a farm close to 30,000.00 a year so that's like a mortgage payment every month. We have applied for Farmland preservation so that will help with taxes a little. We also have 2 car payments and 1 payment on our big trailer. Plus insurance on this place is crazy we insure our horses individually plus liability insurance for boarders and their horses and possessions. So we are certainly not debt free. CC just scare me when we were younger and first married we got out of control with the CC I don't ever want to be in that position again especially now we have too much to lose.

 

[EthansMom]

We have no credit card debt and never really have. We pay our credit card bills in full each month.

But we only recently paid off DH's (large) student loan.

And we do have a pretty big mortgage.

Some folks here might have some credit card debt but owe less on their mortgage. It's all relative.

 

[elizke]

DH and I are 50 and 45, respectively. We are probably higher in debt now than we have ever been. We moved to a new, more expensive area a year ago, much higher mortgage and higher taxes. We have two car payments and a high credit card balance; we are temporarily paying for health insurance using COBRA because DH just switched jobs. It's rough right now! Trying to figure out the best way to get out from under. By next spring things will look much better, (no COBRA, one car paid off, me working, work bonus) but it's hard right now, especially knowing Christmas is coming.

We've gone through times like this before so I know it will get better. I can't say though that there has ever been a time we were completely debt free.

 

[tedhowe]

This statement is interesting because I find that credit cards with rewards attached cause people to spend more than they should. When you have to rack up those rewards, the focus is more on THAT than it is on using your card more cautiously. Maybe this is the problem.

I agree with this totally. We don't carry any credit card debt that has interest (we do take advantage of 0% offers when available - and pay them back on time), but I've come to the opinion that we are spending more than we should because of the great rewards we have on one card (we have a card that gives us 2% of everything as cash back into a 529 account for our DDs college funds).

I've realized that I think we'd be better off taking the 2% off the top and then keeping an eye on our checking account balance instead of just "putting it on the card" and worrying about it once a month.

I think I've convinced myself, now I just need to convince DW of that fact.

 

[eliza61]

Do you find there are an inordinate amount of Disers who have zero credit card debt? While we do not live on credit nor are we swimming in debt, I do use credit cards We use them to our advantage and sometimes that leaves us in debt I just find that the DIS seems to attract more people with zero balance. Hmm, I wonder why that is? Any ideas?

I don't mind that the folks celebrating being debt free, that's a big accomplishment. what I hate is when they make you feel like you are pond scum causing the world to fall into damnation because you say you have cc debt and under no circumstanse should you even remotely disagree with Dave Ramsey. especially on the budget board. Then you're pretty much up there with Al-Queda (sp)

 

[Fitswimmer]

I don't mind that the folks celebrating being debt free, that's a big accomplishment. what I hate is when they make you feel like you are pond scum causing the world to fall into damnation because you say you have cc debt and under no circumstanse should you even remotely disagree with Dave Ramsey. especially on the budget board. Then you're pretty much up there with Al-Queda (sp)

That Dave Ramsey guy is making a FORTUNE. I looked into it, but when I saw how much his program cost, I decided it would be more worthwhile to take that money and pay extra on my credit card bill.

 

[poohandwendy]

LOL, I always wonder if people think I am lying about not having credit card debt and not using credit cards. Now, I know they do, LOL.

I know, for us, it doesn't come from some perfect way of living. It comes from totally blowing it early in our marriage, ruining our credit (being FORCED not to use credit) and then deciding that we are not good with credit cards and that our lives are much better since climbing out of that hole. And not wanting to get back in it. This is the only reason we have no debt. If we didn't blow it, big time, we would still have credit cards I'm sure.

I don't look down on people who have CC debt. I actually envy the fact that they didn't blow it like us. We just don't do well with it. Actually, maybe we would now. Because we have learned to be disciplined. But, it's not worth the chance, so we don't.

And my kids aren't perfect either. Just average.

You can believe me or not. But I will say, I have never, ever started a thread about credit card debt. I have answered when asked, sometimes.

 

[ntsammy5]

I think there's just an inordinate amount of Disers who brag about it.

And lie about it too!

 

[darlak]

I have zero credit card debt, but it hasn't always been that way. I'm 49, 3 or my 4 kids are grown, and only 1 of those 3 is still in college. We downsized to a smaller house almost 4 years ago and while we are constantly renovating it, we just do it as we can afford it. I use my cc from time to time, but almost always pay it off at the end of the month.

I've heard the argument that maintaining some cc debt is actually good for your credit rating, but fortunately improving my credit rating isn't something I need to worry about at this point in my life.

For us, being near debt free is just a product of working hard throughout our lives, finally having most of our kids raised and some good luck in that we've never suffered any major financial catastrophes. Just some of the benefits of getting old!

 

[Banshee]

LOL, I always wonder if people think I am lying about not having credit card debt and not using credit cards. Now, I know they do, LOL.

I know, for us, it doesn't come from some perfect way of living. It comes from totally blowing it early in our marriage, ruining our credit (being FORCED not to use credit) and then deciding that we are not good with credit cards and that our lives are much better since climbing out of that hole. And not wanting to get back in it. This is the only reason we have no debt. If we didn't blow it, big time, we would still have credit cards I'm sure.

I don't look down on people who have CC debt. I actually envy the fact that they didn't blow it like us. We just don't do well with it. Actually, maybe we would now. Because we have learned to be disciplined. But, it's not worth the chance, so we don't.

And my kids aren't perfect either. Just average.

You can believe me or not. But I will say, I have never, ever started a thread about credit card debt. I have answered when asked, sometimes.

I believe you! Because we experienced the same thing. As I said in my previous post CC scare me Oh but my kids ARE perfect!!! hehe just kidding.

 

[poohandwendy]

I believe you! Because we experienced the same thing. As I said in my previous post CC scare me Oh but my kids ARE perfect!!! hehe just kidding.

LOL, yeah I know other people have been there. (and probably some people here don't have CC debt because of the same reason, and some just lie)

We didn't blow it once...we racked up credit card debt, refinanced the house to cover it and then did the same thing again, but worse! Yep, stupid. Then we couldn't get credit because we fell behind on the bills and were forced to slowly work our way back out of it. It took years to pay it off. Meager years.

It's not anything I am really proud of, other than the fact that we finally learned something critical about us, we don't do well with using money we don't have.

 

[azgal81]

I have student loan debt but I don't have any credit card debt. I wouldn't brag about it though thats just silly.

 

[ducklite]

This statement is interesting because I find that credit cards with rewards attached cause people to spend more than they should. When you have to rack up those rewards, the focus is more on THAT than it is on using your card more cautiously. Maybe this is the problem.

I disagree--we se the reward based cards, but no differently than we would any card. If we don't have the cash in the bank to buy something, it doesn't get bought, with or without a cerdit card.

The only time we carry a balance is where it makes sense--like we bought a washer/dryer from Best Buy, 12 months no interest. Of course we carried that balance. The money was in the bank earning us interest, and we were paying no interest on the purcahse. Maybe that's what Momtomootoo was referring to? That's a smart reason to carry a balance. If I were making a large purchase at Best Buy or Home Depot again, I'd do the same thing.

 

[Buckalew11]

I would love to be debt free. I have thought about paying everything off and not having any. I usually pay all CC off but the trips to the Mayo clinic have been hard to keep up with right now. Still, I may just bite the big one and pay my car off , CC off and be done with it. I'd probably sleep better at night.

 

[kribit]

I don't think that the people without credit card debt are necessarily lying but I do think they are vocal about it. Living without credit card debt is "different" than what most of society does these days--it takes a passionate commitment and state of mind to be credit card debt free. I think these people are passionate about living this way and are proud of themselves for doing so. I think when they read about all the debt, it probably riles them up and they talk about it, that's all.

I used my credit cards all month and pay the bill when it arrives so I have no true credit card debt (to me that is when you are making payments and not paying off the balance).

However, I do have a car loan and a mortgage so I am not debt free.

I agree 100% with you on this. But, I'll add that DH and I had AWFUL credit during and after college and had to really get our spending under control. Now, we have good credit with no credit card debt, and it's not that we brag about it. As a matter of fact, we are very vocal that we screwed up royally and are now proud that we managed to fix ourselves and have minimal debt. It was not a fun process, but I'll tell anyone that I'm glad that I don't have the credit cards now.

DH just opened his first card after many years and it's been fine for business purposes. Other than that, I pay cash or use my debit card. It works for us.

My kids are still babes...but no one is perfect. I think mine are pretty nice little people though.

 

[salmoneous]

(Some) people with zero debt tend to brag about it. Folks who carry a balance tend to keep it to themselves.

 

[poohandwendy]

(Some) people with zero debt tend to brag about it. Folks who carry a balance tend to keep it to themselves.

LOL, and then there are some people who constantly talk about their debt. I think some people just like to talk about money issues.

IRL, I don't even think most people around me know that we don't carry credit cards/have only mortgage debt. I don't discuss personal finance very often, IRL. I don't mind mentioning it here when the subject comes up. There are people who will ask how much money you make and I find that to be personal and wouldn't answer. But here, I might answer on an anonymous poll. So, maybe the forum has something to do with it? I dunno.