Interesting article about ditching plastic...

[tonilea]

http://money.cnn.com/2008/06/16/pf/without_plastic.moneymag/index.htm

 

[brockscandy]

This doesn't surprise me - but I love reading about it.

 

[tonilea]

I don't think the average person realizes how much plastic costs us.

Another thing they didn't point out in the article was it costs vendors about 3% to take plastic - debit or credit. Who do people think pay that 3%? Everyone does, the vendor passes the cost of doing business on to the customers.

 

[Julia M]

I think I use a nice compromise between credit and debit cards.

I charge "fixed" costs, where I set aside money each money, for things like dd's tumbling lessons, etc, where it's not like I can splurge (such as at a restaurant, or Target)

I also charge airline tickets, hotels (but never charge the extras, like dinner or drinks at the pool) and big ticket items, like my theatre tickets.

Everything else is cash, debit cards, or now, scrip. (We have to spend $4000 in scrip each year)

I get a few rewards, although maybe not as much as others, but also have the "cash" mentality.

Julia

 

[DiznEeyore]

Everything else is cash, debit cards, or now, scrip. (We have to spend $4000 in scrip each month)

$4K a MONTH?!

I'm so curious!! Why do you have to do that? Is it a school thing?

Our son's school has the scrip program, but it's strictly voluntary. For every $1K in scrip that we buy, an hour of our fundraising time requirement gets knocked off.

 

[tonilea]

$4K a MONTH?!

I'm so curious!! Why do you have to do that? Is it a school thing?

Our son's school has the scrip program, but it's strictly voluntary. For every $1K in scrip that we buy, an hour of our fundraising time requirement gets knocked off.

If you don't mind me asking, what is scrip?

 

[DiznEeyore]

If you don't mind me asking, what is scrip?

It's a program that allows organizations to sell a variety of gift cards and earn a small percentage back as a "commission". It's a great fundraiser for schools.

We usually buy gas cards and grocery store cards. We also bought a bunch to use for Christmas shopping (Kohl's, bookstores, etc.) and gifts.

 

[MrsPete]

I don't think the average person realizes how much plastic costs us.

Another thing they didn't point out in the article was it costs vendors about 3% to take plastic - debit or credit. Who do people think pay that 3%? Everyone does, the vendor passes the cost of doing business on to the customers.

You're right, BUT the store's already added that 3% into the cost of the items -- they're assuming you're buying with credit, and they won't reduce the cost if you're paying cash; thus, this isn't really a battle we individual consumers can fight. In this regard, we neither win nor lose by using our credit cards.

I think this article contains good advice for many people, but I know that my husband and I are coming out ahead by using credit cards for our everyday purchases.

I don't carry a balance on my cards.
As soon as the bill comes in, I pop it into my online bill payment program so that it's paid 1-2 days before the due date; thus, I'm not even using a stamp.
I genuinely don't spend more when I use credit -- I never feel as if my purchases are "removed" from payment if I'm using credit.
I don't buy things I wouldn't buy otherwise just to get rewards (though I do choose certain stores or websites because they're offering various promotions, and I do use the credit card that's most beneficial for the circumstances).

In exchange, I've received all sorts of gift cards over the years -- things that make nice gifts or nice little extras for my family.

I agree that you have to be very careful with credit cards, but I don't think the article's information is completely accurate.

 

[MrsPete]

Everything else is cash, debit cards, or now, scrip. (We have to spend $4000 in scrip each month)

$4000 per month??? We don't spend $4000 (on average) to keep our household running for a month! That's outrageous!

 

[tonilea]

You're right, BUT the store's already added that 3% into the cost of the items -- they're assuming you're buying with credit, and they won't reduce the cost if you're paying cash; thus, this isn't really a battle we individual consumers can fight. In this regard, we neither win nor lose by using our credit cards.

I know, but it stinks to know I am paying more because everyone insists on using plastic, because they buy into the lie that "Life takes VISA".

BTW, I definitely spend more with plastic. Debit or credit.

 

[MrsPete]

I know, but it stinks to know I am paying more because everyone insists on using plastic, because they buy into the lie that "Life takes VISA".

BTW, I definitely spend more with plastic. Debit or credit.

And if credit cards sudddenly stopped being acccepted everywhere, the retailers would not remove that 3% -- they'd just pocket it. We as individuals can't change this. Credit cards are neither good nor bad; they're a tool, a way to buy things. It's how we use them that's good or bad.

Personally, I'm stingy even if I'm spending a gift card. I want each dollar to go as far as possible.

 

[sarahlovesmickey]

Personally, I'm stingy even if I'm spending a gift card. I want each dollar to go as far as possible.

ME TOO!!!!!!!!!!!!!!!!! Sometimes my DH thinks I am being too frugal!! LOL Hey with 3 kids and one on the way, you gotta be!!!

 

[Todd&Copper]

Personally, I'm stingy even if I'm spending a gift card. I want each dollar to go as far as possible.

Me too!

For me personally, I spend more frugally with credit than cash. I find that if I carry cash, I tend to stop for Starbuck's coffee or Quizno's subs more often than if I have to charge it. I am obviously atypical, but I kind of view cash as "play money" and the CC purchases the "serious stuff".

 

[roselark]

Me too!

For me personally, I spend more frugally with credit than cash. I find that if I carry cash, I tend to stop for Starbuck's coffee or Quizno's subs more often than if I have to charge it. I am obviously atypical, but I kind of view cash as "play money" and the CC purchases the "serious stuff".

Same with me. I also view everything I spend with my credit card as if it was a debit card. I pay it off every 2 weeks from my checking account so I don't carry a balance.

 

[DiznEeyore]

I also view everything I spend with my credit card as if it was a debit card.

We do the same thing here.

 

[Julia M]

$4K a MONTH?!

I'm so curious!! Why do you have to do that? Is it a school thing?

Our son's school has the scrip program, but it's strictly voluntary. For every $1K in scrip that we buy, an hour of our fundraising time requirement gets knocked off.

Duh, no $4000 per year. Still a chunk of change, as it's over $330 per month.

Julia

 

[Julia M]

$4K a MONTH?!

I'm so curious!! Why do you have to do that? Is it a school thing?

Our son's school has the scrip program, but it's strictly voluntary. For every $1K in scrip that we buy, an hour of our fundraising time requirement gets knocked off.

Our's used to be voluntary. Now it's mandatory. Of course, I don't believe there are consequences if you don't do it, so I'm not sure how they can make it "mandatory".

Julia

 

[CJMickeyMouse]

Just an FYI on that 3% charge - your healthcare providers can't recoup that. For example, we own a retail pharmacy that does not accept plastic. If we did, we would lose that 3% on every insurance covered prescription - as they set the cost, not us.

Many of the reimbursement rates are so low to begin with, we can't afford to lose that 3%.

 

[MrsPooh]

Our's used to be voluntary. Now it's mandatory. Of course, I don't believe there are consequences if you don't do it, so I'm not sure how they can make it "mandatory".

Julia

Ours has a mandatory amount but it is the amount we must "earn" so since each card has a different % the amount you must spend depends upon which certificates you purchase.

At our school each family must "earn" $200/yr. Anything less than that has to be paid in cash (or you can opt out and pay cash in full). They send a bill at the end of the year and report cards are not issued until the fee has been paid. I guess this wouldn't work at a public school though.

 

[nuke]

Ours has a mandatory amount but it is the amount we must "earn" so since each card has a different % the amount you must spend depends upon which certificates you purchase.

At our school each family must "earn" $200/yr. Anything less than that has to be paid in cash (or you can opt out and pay cash in full). They send a bill at the end of the year and report cards are not issued until the fee has been paid. I guess this wouldn't work at a public school though.

Our school is similar. We have a $250 per year commitment fee. We can buy certificates, sell raffle tickets, candy, magazines, etc to work down the commitment fee. If we earn over the $250 they take it off of May's tuition. If you are under you pay it with May's tuition.