I think it's a safe bet that these forums are not representative of the broader population in many countries (in terms of age, income, family status, employment status, etc).
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how much credit card debt do you have?
- Thread starter shecky
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No credit card debt here. I pay for everything with credit card to earn points but pay the bill in full each month.
In my 40's and never had a credit card in my life. Only ever took one loan (mortgage), which I finished in my 30's.
Never had a need for student loans.
For those with CC debt, here's a top tip.
Just wait for the things you WANT to buy and just buy the things you NEED to buy.
There is a big difference between want and need, but not everyone can tell the difference.
If you have multiple CC debt, transfer to a 0% introductory offer if you can and pay off the one with the highest interest rate first.
Do it as fast as you can (even if it means missing out on that night out or the next iPhone). You'll be better off in the long run.
Terrific post, interesting details on CCs outside of the US!
I'm, *ahem* older
as well, and have no worries about debt, but how do you operate [in the US] without a CC? I could do the cash only when I was younger, or single, and my budgets were more constrained but what about rental cars? Reserving hotel rooms? Amazon purchases? Airline tickets? If you're going out for a evening, with friends etc., do you just take a big stack of cash and hope it's enough?FWIW, we mostly use AMEX so it's what I'd call a "cash substitute"
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I do the same. I rarely carry more than $50 in cash on me at an given time. I put nearly everything on credit cards each month and then pay the balance off when the bill shows up.
I just bought a new to me truck and did cashiers check for that.
The only "debt" i have is my 20 year loan on the house I purchased about 5 years ago.
I am 29 for what it is worth.
I have very little. Like most here I use it for the points and most of the time it is paid off in the month.
Haven't had credit card debt in probably 15 years. I used to use my credit card and pay it off every month, now I just use my debit card. Started listening to Dave Ramsey in the spring of 2014 - paid off both of our vehicles last spring and paid off our house this spring. Won't ever do debt or payments again.
I have about $5k in credit card debt. I have one low interest card that I carry that balance on and have been paying down each month (started with about $7500 balance 3-4 months ago). I have another card that I use for daily transactions to collect cash back (1%) and pay the balance off each month. I've managed to earn almost $100 on that "cash back" card in about 2-3 months. I'm actually going to switch over to the Citi card that pays 1% on purchases and 1% as you pay down the balance.
It's wonderful not having the stress of any credit card debt...but it should be noted that credit cards can be a wonderful thing to help boost your credit score (if utilized properly). Carry a few cards, maintain at least 50-75% "available credit" on all of those cards, and ALWAYS pay on time.
It's wonderful not having the stress of any credit card debt...but it should be noted that credit cards can be a wonderful thing to help boost your credit score (if utilized properly). Carry a few cards, maintain at least 50-75% "available credit" on all of those cards, and ALWAYS pay on time.
Debit card. Apple pay. Cash.Terrific post, interesting details on CCs outside of the US!
I'm, *ahem* older
FWIW, we mostly use AMEX so it's what I'd call a "cash substitute"
Online I use a debit card.
I always carry cash.
I would be more interested in re-asking the question as to how much 'debt' they have NOT in student loans or principle on their mortgage. These days - with interest rates on HELOC (Home Equity Lines of Credit) and other refinanced home loans being SO CHEAP.. I wonder how much NON-principle on their homes they have. Now maybe this forum attracts and/or people who've responded here are more under 30... and don't have homes yet. For them to have 0 credit card debt is very impressive. Before I hit 35 or so I had loads of cc debt. But I was trying to start a career in music (recording studio) and had to get 'up and running'. For 15 years before this year I was carrying 0 credit card debt. Recently I wanted a newer MacPro computer and to upgrade some other aspects of my studio.. and since I have 0% interest for the first 18 months on this one credit card.. I'm carrying about $3K in debt there and paying off $300-$500 a month on it. By the time this card moves to charging me interest I will have it paid off.
But I did consolidate some older CC debt into my home about 12 years ago. About $11K worth.
To those of you who have freed yourself from debt. WELL DONE!!! Not an easy 'impulse' to tame. We want our 'stuff'.
But I did consolidate some older CC debt into my home about 12 years ago. About $11K worth.
To those of you who have freed yourself from debt. WELL DONE!!! Not an easy 'impulse' to tame. We want our 'stuff'.
Well, in the sense of using a credit card that you pay off completely every month it's almost the same as debit card except with additional benefits (some of these might be more US-specific):
- Not having something tied directly to your bank account where money would be removed immediately and then fighting to get it back if needed (vs. it being on a card that doesn't remove your money and can be challenged if needed without that money being at risk).
- Getting additional protection benefits related to purchases that many cards offer (extended warranties, loss/theft protection, additional time on refunds/exchanges, additional insurance coverage, etc.)
- Getting something back, be it as cash rewards, travel rewards, etc.
- Building up and maintaining a credit history to help with credit reports and scores if and when they might be needed for something (like mortgage or something else of that sort).
Never had a problem when I got a mortgage despite never having a loan or CC. I think most banks would look more favorably on a healthier savings account.
Well what I was saying is that you could still get all those benefits by using a credit card that you pay off every month without a downside compared to using a debit card. So someone using a credit card like that is no worse off then someone just using a debit card, and in various ways can be better off.
In terms of mortgages and loans, certainly all kinds of things play a role, but in many cases credit history and credit scores will play quite a bit of a role not just when it comes to whether or not a loan/mortgage could be given, but the rates and other details. Again, it's not to say it's the most important thing, but building that up and maintaining it doesn't hurt anything (at worst it doesn't do much, but at best it helps with something).
(As far as running up debts, that mainly has to do with how you spend money and less with the means you use to pay for it all--just because someone has a credit card doesn't mean they run up a debt vs. if they had a debit card, and if it means that, then it's just symptom and not the actual issue, with the actual issue being with the control of spending money.)
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Until you miss the payment due to unforeseen circumstances and suddenly find you are paying 30% interest!
Look I know my view is different from lots of other people's, but I've got through half of my life (including the part where I didn't earn much money) without any loans or credit cards so I'm not about to change now.
If you handle them responsible then sure fine, but lots don't. That's the problem.
Lots of people borrow money for stupid things and end up living with their parents for half their life. At the end of the day, it's a personal choice.
I worked all through out my Undergraduate career and kept paying off my student loans so I'm at $4200. Which is nothing, as a lot of my friends are at around $40,000. I also did my masters which was fully covered by scholarships and on top of that I got paid to teach which helped. I'm currently working so the $4200 should be paid off during the 6-month interest fee period which ends in Feb. 23 years old. Car fully paid off as I only used money I had saved to buy it, and didn't go overboard. Credit card is at $200 due to regular expenses
Well, similar "what if" reasoning can apply to debit cards as well--until you purchase something and for some reason don't have enough funds on your account due to some unforeseen circumstances or some banking error/delay and get hit up with charges and penalties for that.
All I'm saying is that with responsible use any option works fine--there are up sides and potential down sides, but as long as the use is responsible the downsides (short of weird unforeseen ones that are rare and can happen with anything) can be avoided without much trouble and the the benefit of various upsides can be reaped. It's not to convert anyone over, just to point out that it can work well in more than just one particular way.
And like you said, it's basically a personal choice that isn't simply good or bad or right or wrong in general--just what works or doesn't work personally.
the two things are not mutually exclusive.
i usually use credit for everything, and always keep it balanced. i also have a healthy savings account.
CC do have additional benefits compared to debit cards (which i typically use only to get cash or in places like costco that don't take my CC)
Ditto. BoA has a pretty good incentive for using their CC if you also bank with them. Certain balance thresholds have a 25% cash back bonus if you transfer the bonus to a checking/savings account and there are lower mortgage an auto loan rates.
This is what the credit card companies call "free loading".. People who 'use all their benefits and rewards' and then pay off at the end of the month never letting them collect any interest from you... lol... Isn't that funny --- the banks call us 'free loaders' who do that... LOL
I've got 5 credit cards which are used for different things (2xpersonal, joint, business, overseas) but all have direct debits set-up to pay the full balance each month. Other than direct debits and cash withdrawal, my current (checking) account isn't used for day to day spending, which is all done with credit cards.
I'm probably in a relative small demographic as a 43 year old self-employed home owner (mortgage paid off) with a second home (still with a mortgage) rented out. Whilst I put this down to lots of hard work, driving an old car and not starting a family until I was 40, being in the right place at the right time and knowing the right people played a big part too
I'm probably in a relative small demographic as a 43 year old self-employed home owner (mortgage paid off) with a second home (still with a mortgage) rented out. Whilst I put this down to lots of hard work, driving an old car and not starting a family until I was 40, being in the right place at the right time and knowing the right people played a big part too
Which is why I believe some institutions will give a higher credit limit/credit score to people who borrow regularly, carry over a balance and pay instalments regularly - because they are 'trustworthy' at repayments but still enable the lender to profit via the interest charges.
My credit limit (and, I would guess, score) is consistently lower than other people I know, despite a higher income and no adverse credit history, because I pay off my balance in full and do not carry it over.
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