life with no credit cards, how do you do it?

[fortheluvofpooh]

not that we need them to live by financially. I am curious if we were to have NO, I mean 0 ZERO, credit cards how would we book a hotel? flight? rental car?

 

[tinkerbell198530]

I do cash only that way I know I am debit free

 

[SunnieRN]

My debit card has a logo, so I use that.

 

[fortheluvofpooh]

I do cash only that way I know I am debit free

quote.My debit card has a logo, so I use that. quote

yes but how do you reserve in advance. When I call to book a flight they ask for the CC number, same as a rental car and most of them do not accept debit cards as a second form of ID.

 

[aceys_h0ney]

I've never had an issue using my debit card for reservations. I actually use it as a credit card not a debit. They work in different ways.

 

[Carl Fredricksen]

quote.My debit card has a logo, so I use that. quote

yes but how do you reserve in advance. When I call to book a flight they ask for the CC number, same as a rental car and most of them do not accept debit cards as a second form of ID.

My debit card has a Visa logo and works just like a credit card. It can be used to reserve, etc. just like a CC. I always ask when the card will be billed in advance to make sure I am not paying the whole thing in advance, which I would not want to do anyway even with a CC. We have 2 bank accounts at 2 different institutions. One is for everyday bill paying with a savings account attached, and the other is a "Christmas" account that we use for travel, reservations, dining out, etc. I feel better about not handing out my daily account number at restaurants, etc.

We had credit cards for 20 years, and as of 2009 we have NO unsecured debt, and more money in my savings account than ever. It took us 5 years to pay them off, and about a year after that to build up savings and work through the adjustments of a credit card free lifestyle. It has forced us to make choices on what we buy, and if we really need it. Also, it has forced us to plan better, and really wrap our arms around a household budget. We have even made a plan to pay both cars 6 year loans off in less than 3 years. Once we eliminated the credit cards, our money became like a snowball rolling downhill and it just keeps accumulating. We both have modest jobs and don't make as much as some people we know, but we have a decent savings built up. We never thought we were bad about keeping small balances, and always thought "oh we'll just pay them off each month", but that always seems to be a fantasy that the card companies play on. Seemed like we always had an excuse to use them for something, and then they built up over time, to where we lost money in interest, etc.

This past January I woke up on New Year's day knowing that I had 0 debt from Christmas for the first time in 25 years. Our family had a great holiday, and I never woke up in a better mood to start a new year.

Don't get me wrong, living without credit cards is a real lifestyle adjustment. Maybe we were just bad at using them, but without the temptation, we feel we are better off. My personal opinion is that everyone should cut them up and toss em just like my parents generation did. Seemed like the only things they used credit for was major purchases like a car or house. If they wanted a new sofa, etc., they would save, as well as saving for the "rainy day". That is the philosophy we live by now, and think we will be better off in the long run.

I am not better or smarter than most people, and don't want to sound that way, but my DW and I really believe we have made the right decision on this one. It takes a lot of discipline to shread those "special offers" that come in the junk mail each day, but you get over it after awhile.

Off topic, we decided in 2005 to do this and get rid of the plastic after we found out that the industry term for someone who pays off their balance each month is "deadbeat". That's what the card companies view you as if you stay current. For those who use credit cards and have no problems, good for you and glad to hear it is working out, but you are no friend of the card companies.

Sorry for the rant, but this is a subject that is near and dear to me. IMO Credit Cards are a trap that play on human emotions, and the odds are designed against the consumer.

 

[dizneemom]

We don't have any credit cards either but use our debit card attached to our bank account like the others have said. Because our debit card has a mastercard logo we can use it on the credit side. It still comes out of our account like the debit side does.

 

[Hannathy]

I would never not have a credit card for a true emergency. I however do have self control and don't charge what I can't afford. That is the whole trick not whether you have a credit card or not.

 

[Carl Fredricksen]

I would never not have a credit card for a true emergency. I however do have self control and don't charge what I can't afford. That is the whole trick not whether you have a credit card or not.

Glad to hear you are able to keep it locked away, but I'll take cash savings for an emergency over a credit card any day.

 

[Hannathy]

Glad to hear you are able to keep it locked away, but I'll take cash savings for an emergency over a credit card any day.

Sorry but if I'm stuck out on the interstate at 3 AM I want to be able to get my car towed and a motel and my car fixed. All the money in the bank won't get you a room at 3 am..... on a Sunday

And I said nothing about not having cash savings .Who said I used the card for savings? those are 2 very different things. You should still have savings even if you have a credit card they certainly aren't interchangeable, my goodness.

 

[Planogirl]

Glad to hear you are able to keep it locked away, but I'll take cash savings for an emergency over a credit card any day.

If you have enough cash saved up, I can definitely appreciate that. There can be times when events are catastrophic enough to burn through savings quickly though and then a credit card can save your neck. Been there done that. It's admittedly not a common event though.

 

[deerhart]

I just bought plane tickets using my debit card with no problems. I've never had a problem booking a hotel with my debit card either.


Any debit card with a logo is accepted LIKE a cc. You just give them the debit card number and it goes through. Same way with ordering anything online.

 

[aceys_h0ney]

Sorry but if I'm stuck out on the interstate at 3 AM I want to be able to get my car towed and a motel and my car fixed. All the money in the bank won't get you a room at 3 am..... on a Sunday

And I said nothing about not having cash savings .Who said I used the card for savings? those are 2 very different things. You should still have savings even if you have a credit card they certainly aren't interchangeable, my goodness.

Sure that money in the bank will get you into a room with a debit card that can be used just like a credit card. You can get them for savings accounts as well. Or you can have multiple checking accounts and use them like savings accounts.

 

[Carl Fredricksen]

Sorry but if I'm stuck out on the interstate at 3 AM I want to be able to get my car towed and a motel and my car fixed. All the money in the bank won't get you a room at 3 am..... on a Sunday

And I said nothing about not having cash savings .Who said I used the card for savings? those are 2 very different things. You should still have savings even if you have a credit card they certainly aren't interchangeable, my goodness.

Wasn't trying to offend. I took your post to mean an emergency such as major car repair, etc. Sorry if I misunderstood. Didn't mean to imply that it was a savings replacement either, and glad to hear you say so as well.

I have a Visa debit card for the 3 am towing or need for a motel, so I think we agree that resources are needed sometimes. Mine is just backed up by my linked savings account, instead of a line of credit. We have the same theory, just 2 different approaches to the same end.

Glad to hear you have a plan as well to cover yourself as well. Nothing is worse than not having what you need when those emergencies come up.

 

[Justsyd2]

We don't have any CC's. We use a Visa debit card for all purchases including airplane tickets, hotels, and rental cars. We would use our insurance plan for towing if our car broke down, and we'd use the debit card to get what we needed. When we travel we have enough cash in the account to pay for such things. We never worry about not having a credit card. We do keep roadside assistance on our autos, and we always buy trip insurance.

 

[Hannathy]

I think the point is at least IMO is you should have something a Debit card or a credit card to handle emergencies that happen or to rent a car etc but not to take the place of savings and not to be used if you can't afford what you are using it for in the first place (except for very rare critical emergencies) and a Disney trip doesn't count!

 

[disfan07]

We only use cash and debit cards for daily things and vacations.

We still have our credit cards for emergencies (ex:medical bills) but we've been lucky enough that we've had the $12,000 we've needed every year for OOP medical expenses that we can pay it out right.

We have no credit card debt. Our "debt" is our mortgage and 2 car payments. We're very lucky that we do not have any medical debt yet but that's what the credit card is there for if we need it.

 

[quasar4legs]

I can't imagine life without a credit card.
We use ours as often as possible so that we can earn FF points. It gets paid off every month and we have never paid any interest but have made good use of the free travel.
I LOVE my credit card

 

[Carl Fredricksen]

I think the point is at least IMO is you should have something a Debit card or a credit card to handle emergencies that happen or to rent a car etc but not to take the place of savings and not to be used if you can't afford what you are using it for in the first place (except for very rare critical emergencies) and a Disney trip doesn't count!

I agree completely. You must have a backup source of funding, that is used only for that rare occurrence. What that backup is would be a matter of personal choice, but must be saved for that occasion only and nothing else.

 

[SiAmCrAzY]

We have been Credit Card free for 3 years now. We use several debit cards with the credit feature. We have travelled all over the world with a debit card and have never had a problem. DH works over seas for half of the year and has no problem useing a debit card. No interest, no due dates, no fees and it is one less bill to worry about. I have a close friend who always pays thier cc off at the end of the month he also has several other cards he never uses. He just recieved notice that he will be charged a fee for not carrying a balance on one of his cards! I agree with the OP. I think cc companies look to take advantage of people. Yes, it is nice to have a source of "emergency" funding but I personally will take my chances with my bank accounts, AAA and cold hard cash. I want to pay exactly what something costs, and not a penny more. That's one more penny to put towards a trip to WDW