Does anyone live without using credit cards?

[Disney-Kim]

We have had no problem using our debit card for airline tix, disney hotels, etc. We went twice last year to Disney and had no problem with holds on our cards. I notice that checkout day our balance posts to our acct and that is it.

We don't usually rent cars so have not dealt with that.

We have learned to live without credit cards....going on a year now. Its been a tough transition but we are happy that we pay cash for everything and finally learning more financial responsibility. It really makes a difference when you know yoru paying cash for something. You really learn what is important to you and what isn't.

 

[DISdreamin']

It really makes a difference when you know yoru paying cash for something. You really learn what is important to you and what isn't.

Honestly, I don't believe this. I use credit cards all the time, but I weigh each purchase very carefully and I don't buy anything with credit that I couldn't write a check for. I'm sure here and there I might spend slightly more because of the convenience, but I especially don't buy any big-ticket item (>$100) without weighing the decision very carefully. It's my money I'm parting with, whether I charge it or write a check or pay in cash!!

 

[sweetyface77]

DH and I are living without credit cards. DH and I both have debit cards and a reloadable pre-paid visa card. It's so much better to have control over our money and I can't stand having to deal with credit card companies.

 

[unfreshdiva1]

I've lived without personal credit cards for two years now (only have company credit card that can only be used for travel/business expenses). Learned a very valuable lesson - if you can't pay cash for it, you don't need it.

 

[dyna]

My parents have NEVER EVER had a credit card don't need one don't want one etc. Only time they have not paid cash was when they bought their home in 1954 8,000 dollars for a 3 bedroom 1 bath with a garage on 4 acres oh the home was NEW!

No debit card.... mom won't even write check unless she absolutely has to as that money is not in her hand so she can not depend on that money....silly I know.

DH an I are within a few months of being totally debit free not just credit card free but debit free. We was almost there a few yrs back but one of our DD's got very ill an we had HUGE HUGE medical bills it's taking us almost 8 yrs to pay off those bills........ HOPEFULLY nothing will prevent us from reaching our goal this time.....

 

[Swimalie]

Honestly, I don't believe this. I use credit cards all the time, but I weigh each purchase very carefully and I don't buy anything with credit that I couldn't write a check for. I'm sure here and there I might spend slightly more because of the convenience, but I especially don't buy any big-ticket item (>$100) without weighing the decision very carefully. It's my money I'm parting with, whether I charge it or write a check or pay in cash!!

I agree. I don't charge the item (no matter how big or small) on my credit card unless I have the money in the bank right there and then to pay for said item. I use the card so I can get the cash back (free money since the card doesn't cost me anything to have ), ease of use and security. Credit cards are good as long as the person holding them can treat them like cash.

 

[LovableGluttons]

If you keep a large enough amount of money in an account, you don't need to use a credit card.

I don't want to have to pay someone to use their money when I work hard and have my own.

I've yet to see a credit card with a reward program great enough to make it worth my while to chase after it to get anything back.

Not saying others don't find it worth the time and effort.

For me, there are other things I'd rather be doing.

If you have a large enough downpayment, many banks will be happy to give you a mortgage.

I don't buy a car if I don't have cash for it. I just can't do it.

 

[bonoriffic]

I've yet to see a credit card with a reward program great enough to make it worth my while to chase after it to get anything back.

I never buy anything that I don't already have the cash on hand for. The difference is a credit card means I don't have to physically carry said cash around. Or write a check.

As far as rewards programs go, I have a credit card linked to American Airlines. I have used over $70,000 in free airfare over the past 10 years. All earned from using my credit card. Some of that is artificially inflated, because I wouldn't normally pay $8000 for first class tickets to Hawaii when coach can get me there for 1/10th the cost. Also I probably wouldn't be going to Hawaii in the first place if the airfare wasn't free. That caveat aside, I've gone all over the world for free all because I paid for something with a credit card instead of writing a check. I don't carry a balance so it didn't cost me a penny extra.

If you treat your credit card like a debit card, why not have it work for you? If you don't travel enough that free airfare isn't an incentive, at least get a card that gives you cash back. It is free money handed to you.

I get that some people are unable to live within their means and the temptation to run up huge balances they can't afford is a danger to owning a credit card. Lack of financial self control aside, a credit card gives you things for free for doing the exact same thing you would have done with cash. If you already have the financial maturity to only buy things you have the cash on hand for, why wouldn't you want to get free stuff in exchange?

My next trip to Disney my family will be flying for free. Or I could pay $800 cash. I'm confused why so many people would prefer the pay $800 route.

 

[meghanlea]

no CC here, just debit cards/or cash for us. We have never had a problem with using just a debit card, except for our car rental 2 years ago. We gave his dad the money and he did it for us.

 

[mindyd]

We do not use Credit Cards and do not have any of them. When we go to Disney or anywhere I use my debit card and that is also how I make all my purchases. My old bank actually offered rewards for the debit card and I was able to get quite a few gift cards but we switched and now they offer nothing. I have never had a problem at Disney or any where else I travel using the debit card.

 

[DISdreamin']

If you keep a large enough amount of money in an account, you don't need to use a credit card.

I don't want to have to pay someone to use their money when I work hard and have my own.

I'm not sure what you mean by a large amount of money, but I keep what I feel is a large amount of money in each of our accounts - it still doesn't mean I want the hassle of either carrying large amounts of cash or using a debit card where my account could be cleaned out. Yes, you get the money back eventually, but think about trying to clean up the mess created in terms of bounced payments!

Additionally, if I want to get a large amount of cash out on a weekend, I am limited by my banks policy on withdrawals to something like $400 per day - definitely not enough for a really big purchase, should something come up. I do keep some cash on-hand in case of an emergency, but it isn't something I would nibble into for a purchase - it's for a true emergency.

And I do not pay someone/anyone to use their money, except the lender for our mortgage. I did have student loan debt in the past, but paid that off last year. It felt really good!

 

[LovableGluttons]

I don't think I explained myself fully.

How and why would a credit card company allow people to use credit?

To make money.

While using credit to takie advantage of promotions sounds like a good idea in itself, what happens when a crisis presents itself and you are not able to pay the balance off before it is due?

It's the law of averages. Most of the time, people who are good stewards of their resources will pay off the balance.

I am not a gambling person. I don't want to take a chance and not be able to pay that off in time. I would rather rely on the money I earn in a bank with the benefit of compund interest to make my way in this world.

By using credit, like it or not, there is an element of risk involved.

No, not for everyone, but my way works very well for me. Simple, easy to manage, and very profitable.

 

[LovableGluttons]

Additionally, if I want to get a large amount of cash out on a weekend, I am limited by my banks policy on withdrawals to something like $400 per day - definitely not enough for a really big purchase, should something come up. I do keep some cash on-hand in case of an emergency, but it isn't something I would nibble into for a purchase - it's for a true emergency.

The amount you have available to withdraw each day is between you and your bank. We have ours adjusted when we know we are going to make a large withdrawl.

 

[bonoriffic]

I
I am not a gambling person. I don't want to take a chance and not be able to pay that off in time. I would rather rely on the money I earn in a bank with the benefit of compund interest to make my way in this world.

By using credit, like it or not, there is an element of risk involved.

In the worst case example, you can purchase an item with a credit card 30 days before you technically have to pay for it. If you are worried about a disaster occurring between the purchase date and the day the credit card company wants to be paid back, why not give them the money the same day? There is nothing preventing you from paying your balance in full at any point in your billing cycle. Or making multiple payments throughout the month.

Credit card companies make their money from people who carry a balance and from the fees they charge retailers to process credit transactions. If you don't carry a balance, a credit card will never cost you a penny more than using cash. And in many examples given ad nauseum, will actually give you money in return for not using cash. A credit card (in the right hands) is win win. Further benefits are (for some cards) automatic warranty extension for purchases, conflict resolution for services already paid for, advance purchase opportunities, and fraud and theft protection.

As far as being a gambling man, it seems like walking around with all that cash is a bigger risk.

 

[gillenkl]

We have 1 credit card - disney visa - but we don't carry a balance on it - pay it off every month.

 

[Disney-Kim]

Honestly, I don't believe this. I use credit cards all the time, but I weigh each purchase very carefully and I don't buy anything with credit that I couldn't write a check for. I'm sure here and there I might spend slightly more because of the convenience, but I especially don't buy any big-ticket item (>$100) without weighing the decision very carefully. It's my money I'm parting with, whether I charge it or write a check or pay in cash!!

Well I can understand that you don't agree with this for you but for US it did make a difference. Sometimes it takes change to help you see the way.
I applaud that you and others are able to be financially responsible, it just took us a little longer to figure that out.

 

[secretpantssam]

While using credit to takie advantage of promotions sounds like a good idea in itself, what happens when a crisis presents itself and you are not able to pay the balance off before it is due?

But it can go the other way too. I had a friend who cut up all her credit cards. We live in PA and you have to take your car to a mechanic to get it inspected. Well she had a fear that it would cost too much to make any repairs and she didn't have enough money in her bank account to cover it. So she decided not to bring it in for inspection. Well she also works at a mall where a police officer goes around about once a week and tickets cars with expired inspection. She got several tickets and then while trying to pay those ended up over-drafting her checking account and had to pay extra fees on that. After a couple of months of this she ended up having to just give in and borrow the money from her mother to get the repairs done. A $500 car repair turned into $1000 after all was said and done. If she had used a credit card, she could have just paid off the $500 over one or 2 months and not had to go through all the hassle and end up spending twice as much.

 

[LovableGluttons]

But it can go the other way too. I had a friend who cut up all her credit cards. We live in PA and you have to take your car to a mechanic to get it inspected. Well she had a fear that it would cost too much to make any repairs and she didn't have enough money in her bank account to cover it. So she decided not to bring it in for inspection. Well she also works at a mall where a police officer goes around about once a week and tickets cars with expired inspection. She got several tickets and then while trying to pay those ended up over-drafting her checking account and had to pay extra fees on that. After a couple of months of this she ended up having to just give in and borrow the money from her mother to get the repairs done. A $500 car repair turned into $1000 after all was said and done. If she had used a credit card, she could have just paid off the $500 over one or 2 months and not had to go through all the hassle and end up spending twice as much.

This is an example of irresponsibility, not where credit would have saved someone.

If she could afford $500 a month to pay for car repairs, she wouldn't have been worried about getting her car inspected.

That's simply poor planning.

 

[DisneyMomma81]

I do! Well I do have a Kohl's card with a $100 limit ~ I use my debit card for everything ~ hotels, online purchases, everything.

 

[summerrluvv]

I have never had a hold put on my debit card at Disney resorts, ever.

I've always had a dollar in the 8 trips we have taken