Eye-opening experience this week...

[Sammy]

Just a little background for this one: I am used to using my CC's to pay for everything...groceries, gas, items the kids need for school, etc. I seldom have cash in my pocket and don't usually write checks. I used to pay off the balances each month, but over the past year or so, I'll admit I've lost control of that. It's so easy to just swipe the card and not worry about how many times you've done exactly that for the entire month. So...DH and I decided it was time to get a handle on it and not charge anything anymore if possible.

So, last weekend, I took every CC out of my wallet (2 bank cards and any store cards), and only purchased with cash (or check). Wow! It was really hard!!!! I had no idea just how many times I purchased something and charged it without even thinking about what I was spending. For the past week, I had to constantly keep in mind how much $$ was actually in my checking account in order to pay for something. I know it's sounds like a "duh" moment, but I really never kept track before...hence the outstanding CC balances now!

The only time it was really inconvenient this week was for getting gas. I don't like to have to run into the store to pay...especially with the kids in the car. I'm going to have to plan on getting gas when they are not with me.

Even though it's been uncomfortable for the past week, I know this is the only way to get "out from under", and a part of me felt really good about having the self-control.

We are probably going to cut up all the CCs, just keep one tucked away for emergencies. I would really like to NOT be in this position ever again!!!

Thanks for listening!
Sammy

 

[azgal81]

That's awesome! It's so easy to just get caught up in swiping and swiping and not even think about how much you are racking up.

I have one credit card that I hardly ever use. I'll use it pretty much for booking hotels or airline and that's it. Sometimes I'll use it when I order online because I don't want to use my bank card.

I give myself a food budget and allowance budget every month and pay cash for everything. That way I only spend what I have. It's kinda like when you were given allowance as a kid and your parents didn't give you anymore when it ran out and you had to save it if you wanted to buy something more then what they give you.

I only keep about 75 dollars in my checking account that way I can't just charge things to my bank card becuase there's no money in there. The rest of the money I have in savings accounts.

Sounds like your on the right track!!

 

[njcarita]

Just a little background for this one: I am used to using my CC's to pay for everything...groceries, gas, items the kids need for school, etc. I seldom have cash in my pocket and don't usually write checks. I used to pay off the balances each month, but over the past year or so, I'll admit I've lost control of that. It's so easy to just swipe the card and not worry about how many times you've done exactly that for the entire month. So...DH and I decided it was time to get a handle on it and not charge anything anymore if possible.

So, last weekend, I took every CC out of my wallet (2 bank cards and any store cards), and only purchased with cash (or check). Wow! It was really hard!!!! I had no idea just how many times I purchased something and charged it without even thinking about what I was spending. For the past week, I had to constantly keep in mind how much $$ was actually in my checking account in order to pay for something. I know it's sounds like a "duh" moment, but I really never kept track before...hence the outstanding CC balances now!

The only time it was really inconvenient this week was for getting gas. I don't like to have to run into the store to pay...especially with the kids in the car. I'm going to have to plan on getting gas when they are not with me.

Even though it's been uncomfortable for the past week, I know this is the only way to get "out from under", and a part of me felt really good about having the self-control.

We are probably going to cut up all the CCs, just keep one tucked away for emergencies. I would really like to NOT be in this position ever again!!!

Thanks for listening!
Sammy

we were exactly in the same situation--- so on sept 1 we started using only cash--- wow --- it really makes me think of every purchase---

i've only used my credit cardthree times in the last 6 weeks--
for online stuff--- and i immeditaely deducted it form my budget!!

 

[Jsme]

I have to agree with you it realy adds up. I pay my Disney Visa off every month but when I get the bill or look at it on-line I am always surprised at how much I have spent.

 

[seashoreCM]

So long as you don't waste any food (you shouldn't) you will spend the same amount of money on food whether you use a credit card or whether you pay cash.

If your credit card gives rewards or points or airline miles, you should use the card for all your normal purchases where the card is accepted. Then pay off the entire bill every month as soon as the bill arrives.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[barbeml]

All balances get PAID IN FULL every month.

It doesn't matter how much, that's the rule. We have never strayed from it. I think the highest bill we paid was about $3200. It was mostly vacation expenses--we had booked 3 rooms for us and family on our cc, but the bill came due before we could collect payments, and Christmas gift buying.

All it takes is one tough month to get us more conscious of our spending!

If you can discipline yoursef, credit cards can work for you.

The cards we carry are rewards cards and we have done VERY well with them ($3200 off my last car thanks to GM rewards). Because we pay no interest or late fees, the rewards are truly free.

Also, my monthly statements make it easy for me to track spending, business expenses, tax deductible stuff, etc. I am not good at saving receipts from cash purchases. In fact, if there is cash in my wallet it seems to evaporate! I rarely carry more than $20.

We are all unique and have to figure out what works best for us. Sounds like you are getting it under control...good luck!

 

[Brier Rose]

The only time it was really inconvenient this week was for getting gas. I don't like to have to run into the store to pay...especially with the kids in the car. I'm going to have to plan on getting gas when they are not with me.

What about using a debit card? That's what I do. It gives me the convienience of a CC, but is the same as paying with cash as it comes directly out of our checking account.

 

[crisi]

I'm the opposite. If I have cash, it gets spent. $1 here in the vending machine, $4 at McDonalds. If I have to get out the card, I do think - plus I have a log of everything I've spent so I'm accountable. We do use a debit, not a credit, card for most things. So its like writing checks.

 

[Free4Life11]

As far as food goes, that's not necessarily true. If you are using CC to pay for everything you may buy more expensive brands, etc. or add on lots of the impulse items in the checkout aisle, like the bottles of pop, etc.

I used to do cash but now I just do debit. With cash I just ended up with so much change and I can't stand having change around. I end up losing it in my pockets, around the house, etc.. I'd rather just use the debit because it's basically like cash and it's got the ease of a credit card. Plus I don't get charged to use it which is nice.

 

[Free4Life11]

I'm the opposite. If I have cash, it gets spent. $1 here in the vending machine, $4 at McDonalds. If I have to get out the card, I do think - plus I have a log of everything I've spent so I'm accountable. We do use a debit, not a credit, card for most things. So its like writing checks.

That's how it was for me! I try and just use debit. With cash I was too tempted to do the vending machines, etc.

 

[The Disney Bunch]

You did great! We are trying to being our CC debt down- it has gotten out of hand. I like to use my debit card for the imple fact that it gives a receipt of where I spent money - with cash I never remember to keep the receipt. I find with the debit card, I tend to spend less than if I have cash becaue I feel I have to have a certain amount in order to use it so no more quick candy bars or magazines!

 

[Kay1]

Our grocery bill was getting out of hand so I decided to take enough cash for two week's worth of groceries each payday. I'm keeping the money hidden and am secretly saving as much as possible to pay for all our meals on our next Disney trip.

Anyhow, the first Friday I tried this, without thinking, I paid for my groceries with my debit card! Grrr. . .It's hard to change old habits, I guess. (In my defense, when I reached for my wallet, a lizard was sitting on my purse! Freaked me right out!) I decided to "hide" my debit card from myself by stashing it with my Universal passes.

I'm also trying to save on coffee and filters by tossing the grounds only every other day and adding a single scoop of coffee on the days I save the grounds. Don't you know, zombie-like, I keep throwing away the grounds (and no nearby lizards to blame). I'll just keep trying.

 

[BibbidyBobbidyBoo]

Just a little background for this one: I am used to using my CC's to pay for everything...groceries, gas, items the kids need for school, etc. I seldom have cash in my pocket and don't usually write checks. I used to pay off the balances each month, but over the past year or so, I'll admit I've lost control of that. It's so easy to just swipe the card and not worry about how many times you've done exactly that for the entire month. So...DH and I decided it was time to get a handle on it and not charge anything anymore if possible.

So, last weekend, I took every CC out of my wallet (2 bank cards and any store cards), and only purchased with cash (or check). Wow! It was really hard!!!! I had no idea just how many times I purchased something and charged it without even thinking about what I was spending. For the past week, I had to constantly keep in mind how much $$ was actually in my checking account in order to pay for something. I know it's sounds like a "duh" moment, but I really never kept track before...hence the outstanding CC balances now!

The only time it was really inconvenient this week was for getting gas. I don't like to have to run into the store to pay...especially with the kids in the car. I'm going to have to plan on getting gas when they are not with me.

Even though it's been uncomfortable for the past week, I know this is the only way to get "out from under", and a part of me felt really good about having the self-control.

We are probably going to cut up all the CCs, just keep one tucked away for emergencies. I would really like to NOT be in this position ever again!!!

Thanks for listening!
Sammy

Interesting what works for people- can be so different! For us it's exactly opposite- using the CC for everything is an eye opener to how much you spend on the little things and how they add up (we pay it each month though). NOT having cash on hand keeps me from spending more... when I have cash, I'm more inclined to spend it- especially on things/places where credit cards aren't accepted.

Until recently (and for many years) I would use only checks and then mostly only the debit card. I only recently started using CC in this way because of the points rewards. LOL

 

[dvcgirl]

Just a little background for this one: I am used to using my CC's to pay for everything...groceries, gas, items the kids need for school, etc. I seldom have cash in my pocket and don't usually write checks. I used to pay off the balances each month, but over the past year or so, I'll admit I've lost control of that. It's so easy to just swipe the card and not worry about how many times you've done exactly that for the entire month. So...DH and I decided it was time to get a handle on it and not charge anything anymore if possible.

So, last weekend, I took every CC out of my wallet (2 bank cards and any store cards), and only purchased with cash (or check). Wow! It was really hard!!!! I had no idea just how many times I purchased something and charged it without even thinking about what I was spending. For the past week, I had to constantly keep in mind how much $$ was actually in my checking account in order to pay for something. I know it's sounds like a "duh" moment, but I really never kept track before...hence the outstanding CC balances now!

The only time it was really inconvenient this week was for getting gas. I don't like to have to run into the store to pay...especially with the kids in the car. I'm going to have to plan on getting gas when they are not with me.

Even though it's been uncomfortable for the past week, I know this is the only way to get "out from under", and a part of me felt really good about having the self-control.

We are probably going to cut up all the CCs, just keep one tucked away for emergencies. I would really like to NOT be in this position ever again!!!

Thanks for listening!
Sammy

That's great Sammy. And what you did was a great exercise for anyone who isn't paying off their CC monthly. Or even some who are...if your budget is really tight. You think a whole lot more about where your money is going when you're handing that cashier a 20 dollar bill and not a piece of plastic. Makes it much more real. Good for you!

 

[Alicnwondrln]

congratulations
its hard
we recently got rid of everything
except one and have not used it in over a year

 

[Lisa loves Pooh]

I haven't used a CC since August-ish.

Yesterday we got a ding fare to book hubby a flight..he said to use the credit card...1st time in a long time.

The funny thing is, I still took out my debit card. Had to go back and dig out the CC.

 

[disneysteve]

As far as food goes, that's not necessarily true. If you are using CC to pay for everything you may buy more expensive brands, etc. or add on lots of the impulse items in the checkout aisle, like the bottles of pop, etc.

I don't understand this. When I'm shopping at the supermarket, the mall or where ever, what I choose to buy isn't determined by my form of payment. It's determined by what I want, what I need and how much I'm willing to spend. $10 is $10 whether I pay cash or credit. I'm not going to spend any differently with a credit card than I would with cash.

We prefer to use CC for absolutely everything we can, even little purchases. We use 2 reward cards and get hundreds of dollars a year in rewards. Plus, our statements serve as a nice summary of our spending. At the end of the year, we can order a year-end summary of all of our charges broken down by category (car expenses, restaurants, travel, etc.).

 

[crisi]

I don't understand this. When I'm shopping at the supermarket, the mall or where ever, what I choose to buy isn't determined by my form of payment. It's determined by what I want, what I need and how much I'm willing to spend. $10 is $10 whether I pay cash or credit. I'm not going to spend any differently with a credit card than I would with cash.

We prefer to use CC for absolutely everything we can, even little purchases. We use 2 reward cards and get hundreds of dollars a year in rewards. Plus, our statements serve as a nice summary of our spending. At the end of the year, we can order a year-end summary of all of our charges broken down by category (car expenses, restaurants, travel, etc.).

I suspect the difference is that with $100 in your pocket for groceries, you CAN'T go over $100. You count carefully what you put in the cart, make sure you get the necessities first. You are much more likely to come in at $97 - and its impossible to come in at more than your budget.

With a card, if your budget is $100 and you spent $103, there isn't a hard stop. A lot of people don't have the discipline to stay away from the cookies just because it will put them over budget. Than there is the "but I'm being good!" of buying a bunch of stuff on sale - which can be good, but can also tie up a lot of cash - for someone paying 18% interest on a credit card, having shelves stocked with hundreds of dollars worth of bargains probably isn't much of a bargain.

 

[disneysteve]

I suspect the difference is that with $100 in your pocket for groceries, you CAN'T go over $100. its impossible to come in at more than your budget.

That makes sense. I guess what I didn't get in the original comment was saying you would buy different brands with a CC than you would with cash. I'm going to buy the same stuff no matter how I'm paying.

 

[crisi]

That makes sense. I guess what I didn't get in the original comment was saying you would buy different brands with a CC than you would with cash. I'm going to buy the same stuff no matter how I'm paying.

A lot of people aren't good about thinking a few steps ahead. Cash forces them to.

For instance, I'm at the grocery store with $100. The spaghetti sauce I really like is $.50 more than the spaghetti sauce I find acceptable. With cash, I might notice. Moreover, with cash, I might care. I might think - "gee, if I manage to save $.50 six times, I can get some ice cream that isn't in my budget and have a treat." In economic terms, cash forces you to make a decision regarding the marginal utility and opportunity costs of an extra $.50 on spaghetti sauce that with a card you can ignore.

Of course, some people have the discipline to look at each of these decisions regardless of what payment method they use.