Does anyone live without using credit cards?

[Shreggor]

But people who use credit cards (me for example) have emergency accounts too.

Me too.

 

[DCLbrideSept2009]

But people who use credit cards (me for example) have emergency accounts too.

My post was in response to the person who said that if there were a crisis, then one should just pay the minimum on the CC until the crisis was over. That isn't an issue if you have SAVINGS and/or don't use CC's to begin with.

 

[ohlas]

Well then, in the event of an actual crisis, you'd pay the minimum for a few months until the crisis is averted.

What if you used $1500 in cash to buy a new tv and then the day you got it home, your roof caves in? You'd probably have to rearrange your finances in some way for a crisis, whether you use cash or credit.

If you use cash for a big purchase, you're going to still be out that cash when a crisis comes. If you use credit, at least you can deal with the crisis with more cash in hand until the crisis is over.

The problem is not credit. It's idiots who charge more than is reasonably within their budget.

if the roof caves in I will call my insurance company and i have the 1k in the bank for the deductable, still wouldnt need credit, then i would call my family ask them if i could sleep over their house till its fixed... think my insurance pays up front for hotel too.

and anyone that would take their emergcy money to buy a tv is a FOOL and not out of debt. they just go in cycles of debt. in and out. there is more then one tv in my house so i would have to do without the 1500 tv if i didnt have the extra cash to payfor it now i could wait 3 months to replace it if i wanted a 1500 tv... it all in how you look at it,,, its ok to wait for things you want, its ok to be in debt if you are ok with that too... just not ok with me...

 

[QVCshopper]

I posted a few pages ago. Anyway, I think most people who see credit cards as evil have had significant debt on them and dug themselves out over time.

However, it's not really the credit cards' fault. It's people who bought beyond their means, kinda knowing they had to pay it back one day but not really thinking about it. It's very similar to the housing crisis--people buying huge houses that they couldn't afford because someone told them they could. We were told we could buy a house worth $200K more than the one we bought--we laughed at them.

It really comes down to self-control and honesty with yourself... and putting needs above wants. (Unless, of course, there are serious issues such as unemployment, illness, divorce, etc.)

Didn't anyone else read the Shopaholic series?

 

[Colleen27]

I posted a few pages ago. Anyway, I think most people who see credit cards as evil have had significant debt on them and dug themselves out over time.

However, it's not really the credit cards' fault. It's people who bought beyond their means, kinda knowing they had to pay it back one day but not really thinking about it. It's very similar to the housing crisis--people buying huge houses that they couldn't afford because someone told them they could. We were told we could buy a house worth $200K more than the one we bought--we laughed at them.

I think there are a fair (and growing) number of people like myself, who have never dealt with significant debt but who see CC and the "need" for a CC as part of a broken system that they want no part of. We've never had credit card debt. DH had a Discover card as a college student but that was ancient history by the time I met him, and we've never used credit cards in our married life. I just refuse to buy into the idea that it is good and necessary to have instant access to a large line of credit at all times, any more than I'd buy into the bank's pre-approval of twice what we were comfortable spending on a home.

Yes, personal (ir)responsibilty and the instant gratification mindset are part of the problem, but so is corporate irresponsibilty in extending credit to anyone with a pulse and promoting the notion that CCs are essential to living.

 

[clkelley]

I will charge everything I possibly can. There are two main advantages that cash can never match, reward points and conflict resolution.

I have earned enough frequent flier points from my credit card to travel to Europe and Hawaii multiple times first class. Cash certainly never earned me a trip to London. If you pay with cash, the transaction is done, and if something goes wrong you are more than likely not going to win. I've had two issues before and a simple call to the credit card company was all it took and they fought the issue on my behalf. They always win.

As I've never carried a balance in my life I don't see how credit cards are anything but good.

EXACTLY!! While we were in debt just a year ago, we have paid that off and now live debt free except for the mortgage and "smart" debt. (For example, we bought a new washer and dryer. Have the cash in the bank, but was offered 12 months interest free.)

We still use credit cards for everyday purchases. As a matter of fact we carry two different cards.

One is our primary card with no annual fee and great rewards, and the other is our "fraud alert" backup card. (Still a good card with no annual fee, but the rewards are only so so).

At least once a month, a charge we make somewhere is declined because some random computer is trying to protect us. I have the second card on hand to take care of the purchase and can then call the credit card company to verify my identity and get the fraud alert off at a time convenient to me, not while in line at a store or at a gas station. (Now that we are debt free and empty nesters, we travel quite frequently with our camper over the weekends, plus go down to Disney several times a year, plus with my work travel, the card gets quite a workout.) However, the cards get paid off each and every month. Usually the day BEFORE the billing cycle. If I wait until the billing cycle actually hits, then my FICO score shows a high balance on those cards.

We have emergency money sitting in a good yield safe investment, and are paying extra on the house each month, and every 6 months I'm increasing my 401K deposits by 1%.

All of the other cards we used to have debt on are still open, but are sitting in the safe. We only closed the 1 card that had an annual fee.

As a result our FICO score is now a solid 790 on all three reports. (It was 798, but took a temporary hit due to refinancing the house to a lower interest rate and 15 years and buying the washer/dryer on 12 mo SAC).

I expect once the washer/dryer is paid off, it will go above 800.

 

[mhsjax]

I posted a few pages ago. Anyway, I think most people who see credit cards as evil have had significant debt on them and dug themselves out over time.

However, it's not really the credit cards' fault. It's people who bought beyond their means, kinda knowing they had to pay it back one day but not really thinking about it. It's very similar to the housing crisis--people buying huge houses that they couldn't afford because someone told them they could. We were told we could buy a house worth $200K more than the one we bought--we laughed at them.

It really comes down to self-control and honesty with yourself... and putting needs above wants. (Unless, of course, there are serious issues such as unemployment, illness, divorce, etc.)

Didn't anyone else read the Shopaholic series?

I agree to some extent, but my father NEVER EVER had a credit card, he thought they were evil. Why use them when you could pay cash and he never had any debt and in fact died with more money in his accts than probably most people making twice his money. He even bought his houses with cash.

 

[momofsamandeden]

We do! Not only are we card free but we use a reloadable card that dh's paycheck goes on and once there is no funds in it there is no money. I have a checking account but even that we asked to have cap spending unless there was an emergency. We survive, live on a budget and it is so funny when I talk to my SIL and she can't believe we do it without cards meanwhile she has no children and ten cards.

 

[J3nn78]

We basically live CC free. We keep one CC with a $750 limit for emergency. I also try to use it (paying in full of course) occasionally to keep it active and keep our credit score up.
I also use a Kohl's credit card for the discounts. I always pay it in full when I use it.

 

[bettymae1121]

My parents were as anti debt as you can possibly imagine. In 40 years of marriage, their only debt was a mortgage. No car payments, no CC debt. Zilch.

They had a CC with a H U G E credit limit. Why? Because it was easier and safer than paying with cash or check, and once into the 80's, they could earn frequent flyer miles. They took a half dozen trips to Hawaii over the years with those miles. Never ONCE did they pay interest, never ONCE did they carry a balance.

By the time they reitired they were able to pay cash for the home they wanted in retirement, cash for the luxery car they wanted, cash for the golf cart they used to toodle around their golf course community (even though they didn't play...) and cash for all the trips they wanted to take. Their net worth was pushing nearly 1 million dollars when they retired. Dad was a copy machine repair man, mom worked part time as an office clerk for a long time, then full time as a book keeper once us kids were older...we aren't talking about a doctors or lawyers salary here. CC's didn't harm them one little bit because they used them wisely.

CC's can do huge amounts of damaged if they are not used properly, you'll get no arguement from me. I think some of the CC's policies and practices over the years boarder on legal loan sharking. I wish the new rules for CC's had gone farther to protect consumers. But CC's can be used wisely and can either not harm the user, or actually benifit them with rewards.

If a person feels that they can get along without CC's, that is totally fine. If that is what make you happy, then it is what you should do. I would never advise someone to do something that made them nervous or uncomfortable. But I don't like it when some of the anti-CC people make blanket judgements that anyone that uses a CC is a fool that is begging for trouble. That can be the case for some, but it isn't the case for all, and I would argue not even most CC users.

 

[DebMcDonald]

I have friends that do, but of course they filed for bankruptcy last year and haven't paid their mortgage since August, so they probably don't count.

I used my credits cards around x-mas, but the majority of the time whatever I put on them I pay off that month, so I'm not the type of customer that the credit card companies want.

 

[bonoriffic]

The original post was that credit card companies are bad, and even using a credit card and paying it off in full each month was not worth it. Dave Ramsey apparently also doesn't use them, as though that matters in anything.

I will propose to anyone making a purchase with cash to please let me buy it for you with my credit card and you hand me the cash. I will even give you a nickel discount, more cash for you! You'll walk away paying even less and continue to have the self satisfaction that you only use cash and thus are superior. I'll think fondly of you as I'm sitting on the beach in Hawaii that I got there for free thanks to credit card purchases. We both will be debt free, the difference is I'll be able to travel anywhere in the world for free, and you will have an extra nickel.

 

[growinupdisney]

We are done with credit cards!! They are all paid off and I cut every single one of them up into tiny little pieces. I hate the credit card companies and I am not interested in using them and then paying them off at the end of the month. Dave Ramsey lives without them. We are planning a trip soon and we are not using credit cards. I plan on paying cash for my rooms. We did get a travel money credit card from AAA to use. Has anyone used their debit card for a hotel or car rental?

We are credit card debt free! Last few years we have you used our debit card for hotel etc. Next month we will have our 2006 explorer and 2006 MVP paid off We have a seperate account we use for disney this is the debit card we use!

 

[punkin]

If a person feels that they can get along without CC's, that is totally fine. If that is what make you happy, then it is what you should do. I would never advise someone to do something that made them nervous or uncomfortable. But I don't like it when some of the anti-CC people make blanket judgements that anyone that uses a CC is a fool that is begging for trouble. That can be the case for some, but it isn't the case for all, and I would argue not even most CC users.

The original post was that credit card companies are bad, and even using a credit card and paying it off in full each month was not worth it. Dave Ramsey apparently also doesn't use them, as though that matters in anything.

There is a huge number of Dave Ramsey fans on this site, and while I have nothing against the man and he has helped a lot of people get out of debt, he has been nearly deified by his followers.

I disagree that CCs are always bad (some people probably shouldn't use them, but they are a great tool for the vast majority); I disagree with his snowball method (Paying off higher interest rates first is a better financial move usually); and I don't like cookie cutter financial advice for the masses.

I have debt (house and car). I have CCs (and pay them off each month). I have savings. I take vacations-sometimes really expensive ones (supplemented by my CC reward points). I am happy where I am financially and wish the same to everyone else, whether they use CCs or not.

 

[Colleen27]

The original post was that credit card companies are bad, and even using a credit card and paying it off in full each month was not worth it. Dave Ramsey apparently also doesn't use them, as though that matters in anything.

I will propose to anyone making a purchase with cash to please let me buy it for you with my credit card and you hand me the cash. I will even give you a nickel discount, more cash for you! You'll walk away paying even less and continue to have the self satisfaction that you only use cash and thus are superior. I'll think fondly of you as I'm sitting on the beach in Hawaii that I got there for free thanks to credit card purchases. We both will be debt free, the difference is I'll be able to travel anywhere in the world for free, and you will have an extra nickel.

But lets be honest here - you have to spend a LOT to get those high-value rewards. Most programs come out to around 1% back, and many charge an annual fee to do so. I don't spend enough to enjoy Hawaii or even Disney World on rewards, and I'm perfectly content with the 1% cash back I get with my debit card.

I don't think credit cards are evil, though I do think our credit-driven culture is the cause of our current economic woes. And I wouldn't call someone who uses and pays off their cards each month stupid or imply it is a poor decision. But I do take issue with the fact that so many on this thread think not having credit cards is a bad choice, and basically say the only reason not to have them is if you have zero self-control. Just look at all the threads that pop up here time and again asking questions/venting about rate hikes, new fees, changes in billing cycles, reduced credit limits, etc... Those headaches are reason enough for me to feel like credit cards are more trouble than they're worth for myself and my financial situation.

 

[jodifla]

But lets be honest here - you have to spend a LOT to get those high-value rewards. Most programs come out to around 1% back, and many charge an annual fee to do so. I don't spend enough to enjoy Hawaii or even Disney World on rewards, and I'm perfectly content with the 1% cash back I get with my debit card.

I don't think credit cards are evil, though I do think our credit-driven culture is the cause of our current economic woes. And I wouldn't call someone who uses and pays off their cards each month stupid or imply it is a poor decision. But I do take issue with the fact that so many on this thread think not having credit cards is a bad choice, and basically say the only reason not to have them is if you have zero self-control. Just look at all the threads that pop up here time and again asking questions/venting about rate hikes, new fees, changes in billing cycles, reduced credit limits, etc... Those headaches are reason enough for me to feel like credit cards are more trouble than they're worth for myself and my financial situation.

I've gotten tickets to Hawaii, Europe, California on my Delta Amex.

Have enough miles for a couple of round-trips to somewhere....now we are just figuring out how to spend them!

 

[singnring]

We have been CC debt free for many years now.

We also paid off our mortgage last July, so we are 100% debt-free.

I do still use CC's, but only to get rewards for my purchases.

We pay off the cards every month and never pay any fees or int to the CC companies.

I also like the peace-of-mind I get when I do make purchases, as I know I have the CC co backing me up if anything crooked happens in the transaction.
I have had a few CC disputes over the years. Each time, the CC co sided w/ me and protected me because I had made the purchase w/ their card.

CCs are only evil if you misuse them, which, unfortunately, most people do.

 

[bonoriffic]

But lets be honest here - you have to spend a LOT to get those high-value rewards.

It adds up pretty quickly. Just for signing up for a card you get a free ticket. I have a card, my wife has a card, and we have a second joint card used exclusively for Costco as they only take AMEX. That is 3 free trips right off the bat for doing nothing. There are then multipliers which some people go to insane lengths to maximize, I just blindly let them happen such as 25 miles for every dollar spent for certain products/restaurants/time of the day, etc. If you sign up to go paper free for your monthly bill they give you 5000 miles. Sign up to get your newsletter for the airline sent by email and you get another 1000. For awhile if you check in online you got 500 miles, I don't fly regularly enough to know if that is still true. You can participate in online surveys for miles. With any ambition at all you could probably earn a free trip each year through no purchases. I'm lazy and don't seek out these opportunities, spend maybe $1500 - $2000 a month on my credit card (remember I charge everything) and have enough miles to go to Europe or Hawaii every other year for 2. (Or 1 free trip for 2 in the US every year)

 

[gillenkl]

Just because someone has a credit card - doesn't mean they have credit card debt. I use my disney visa for all my monthly purchases and pay it off every month. I don't charge anything I don't have money for. I also have earned $200 towards my next disney trip - so if it costs my family around $30 to eat a counter service - we just earned roughly 6 meals. The only way credit cards work is to pay them off every month and carry no balance - that's what we do, and credit cards debt isn't a problem for us.