POLL: How many credit cards do you have?

[Subcommander R.]

Each of you are free to make your own financial decisions. But I refuse to buy into the credit game. I find it irresponsible and I believe the companies are predatory. Go to a college campus and you'll see them offering bribes. A free pizza if you get a credit card. Never mind you can't afford it. Its all about exploiting greed and impatience.

Even if you personally manage it, the reason the companies exist is to make money off of the poor, the desperate, and the fools.

So, basically, you were called out as being dead wrong by several people and now you're just going to spout rhetoric. Got it.

I grant that some people have points. That doesn't entitle you to be a jerk. You should know better.

I'm taking a moral stand. I consider debt to be unacceptable. I consider credit to be spending money you do not have. And that is debt.

Sure it can work for some people. But if no one paid any fees or fell behind the service would not exist. You can not deny that.

 

[Robert Maxwell]

Each of you are free to make your own financial decisions. But I refuse to buy into the credit game. I find it irresponsible and I believe the companies are predatory. Go to a college campus and you'll see them offering bribes. A free pizza if you get a credit card. Never mind you can't afford it. Its all about exploiting greed and impatience.

Even if you personally manage it, the reason the companies exist is to make money off of the poor, the desperate, and the fools.

So, basically, you were called out as being dead wrong by several people and now you're just going to spout rhetoric. Got it.

I grant that some people have points. That doesn't entitle you to be a jerk. You should know better.

I'm taking a moral stand. I consider debt to be unacceptable. I consider credit to be spending money you do not have. And that is debt.

Sure it can work for some people. But if no one paid any fees or fell behind the service would not exist. You can not deny that.

It's fine to take a stand and you are entitled to your opinion. You are not entitled to say things that aren't true, though, and you stated that it was not possible to use a credit card without it costing more than cash-in-hand purchases. Several people corrected you on that, and rather than offer your mea culpa you just acted as though you were taking a moral stand all along and not making factual assertions regarding the mechanics of credit cards.

I also didn't call you any names, so you might want to reconsider that "jerk" part.

 

[Mary Ann]

I have a Visa and Mastercard, one for online use and the other is for emergencies as it has a large limit. In fact I just used it to buy two laptops (both mine and my daughter's died) and I'll pay that off over the next few months. I have a Russell and Bromley card so I can buy my kids school shoes whenever they need them if I don't have the cash in my account, and I have a Dorothy Perkins card I haven't used for years. I've paid some interest over the years but that's my decision and I have a very good credit record as I've always paid off my debts.

 

[Captain_Nick]

I'm taking a moral stand. I consider debt to be unacceptable. I consider credit to be spending money you do not have. And that is debt.

You need some financial education I think. Debt is a useful tool when the money you have borrowed is returning a higher level of income than you are spending on the interest payments.

Debt and banking makes the world go round, moving capital from those that have it to those that can use it to generate wealth.

Only when debt is used for 'lifestyle' purchases and meaningless chattels does it become problematic. Thanks to home loans, people have been able to afford housing they previously couldn't and the cost of housing has inflated to levels that render it impossible to purchase without a loan (for most people). Car loans have inflated the cost of cars to such a degree that most people can only afford an old used car if they choose to pay cash. God help us if bankers start offering loans for legal or medical services.

 

[Capn Flukie]

Credit card free for fifty years.

 

[RoJoHen]

I'm taking a moral stand. I consider debt to be unacceptable. I consider credit to be spending money you do not have. And that is debt.

So I assume you never plan to be a homeowner? Or are you just going to pay cash? What about student loans? Should kids just not go to college because they can't afford to pay it out of pocket?

 

[Subcommander R.]

So, basically, you were called out as being dead wrong by several people and now you're just going to spout rhetoric. Got it.

I grant that some people have points. That doesn't entitle you to be a jerk. You should know better.

I'm taking a moral stand. I consider debt to be unacceptable. I consider credit to be spending money you do not have. And that is debt.

Sure it can work for some people. But if no one paid any fees or fell behind the service would not exist. You can not deny that.

It's fine to take a stand and you are entitled to your opinion. You are not entitled to say things that aren't true, though, and you stated that it was not possible to use a credit card without it costing more than cash-in-hand purchases. Several people corrected you on that, and rather than offer your mea culpa you just acted as though you were taking a moral stand all along and not making factual assertions regarding the mechanics of credit cards.

I also didn't call you any names, so you might want to reconsider that "jerk" part.

You don't have to directly call someone an insult, the use of implication is clear.

You can see perfectly well I dropped the complaint. You can also see I've acknowledged it can work for some people. SO why is there any reason to get personal?

My own personal policy is to avoid as much debt as possible. Sometimes things are needed. But I do not believe credit is a need. I believe its a convenience device that can cause some serious harm in the wrong hands. And if you want to know why I hold these beliefs, its because such excess and misuse has left my grandparents poor and completely without health insurance. I've seen firsthand what the concept of get now and pay later can entail, and it makes me uncomfortable.

If you can use one 'properly' then more power to you. I guess those of you with credit cards probably know quite a bit. All I know comes from the offers I continually receive and shred, and the experiences of my friends and family.

Only when debt is used for 'lifestyle' purchases and meaningless chattels does it become problematic. Thanks to home loans, people have been able to afford housing they previously couldn't and the cost of housing has inflated to levels that render it impossible to purchase without a loan (for most people). Car loans have inflated the cost of cars to such a degree that most people can only afford an old used car if they choose to pay cash. God help us if bankers start offering loans for legal or medical services.

Thats actually an extremely eloquent summation of the way I feel.

 

[bigdaddy]

I'm shocked by all the zeroes.

 

[Captain_Nick]

Heh, never been called eloquent before.

It strikes me that the true champion of this credit game is the man who figures out how to borrow, not repay, and get away with it. That way he can combat the inflationary forces without forcing himself into a lifetime of bondage.

Believe me I am working on this one. If I crack it, I will be the next Jesus.

 

[Nerys Ghemor]

Again, there is NOTHING wrong with using a credit card as a proxy for cash you ALREADY have. There is zero difference between that and writing a check out of your account other than that several purchases debit out of your account all at once, on a set day during the month.

As far as other sorts of debt are concerned...car loans, home loans...my thought on that is this: if you cannot enter into it without a SOLID, SOLID financial plan, then DON'T. Such a plan should include: what are the payments, really, WITH interest (and can you pay above the minimum, for instance, to pay a mortgage off sooner than 30 years? This way you lose a lot less to interest), CAN you afford that with all of your other expenses AND still have some buffer to save? And what happens if you lose your job? What happens if your investments get wiped out or seriously devalued? Incurring debt without several months of your regular salary in savings...and in this economy, I personally you may even want to consider having as much as 1 year's salary in savings given the length of time it's likely to take to get a new job even for a perfectly qualified, marketable individual.

But once you determine this plan, you MUST have discipline to stick with it. An undisciplined individual has no business carrying that sort of debt.

I think that a person shouldn't take on debt that there is any reasonable chance they will default on. And if you don't have a strong financial plan or you do not ADHERE to your plan...then it is irresponsible. BUT--I think that if you are responsible about it, it's OK.

Disclaimer: I am NOT a financial advisor or analyst. Please see your financial advisor for qualified advice on your personal situation; don't go based on an opinion on an online forum.

 

[Captain_Nick]

Aw, so I can't sue you if I blindly follow your advice without putting any thought into it? Damn

 

[RoJoHen]

Again, there is NOTHING wrong with using a credit card as a proxy for cash you ALREADY have. There is zero difference between that and writing a check out of your account other than that several purchases debit out of your account all at once, on a set day during the month.

As far as other sorts of debt are concerned...car loans, home loans...my thought on that is this: if you cannot enter into it without a SOLID, SOLID financial plan, then DON'T. Such a plan should include: what are the payments, really, WITH interest (and can you pay above the minimum, for instance, to pay a mortgage off sooner than 30 years? This way you lose a lot less to interest), CAN you afford that with all of your other expenses AND still have some buffer to save? And what happens if you lose your job? What happens if your investments get wiped out or seriously devalued? Incurring debt without several months of your regular salary in savings...and in this economy, I personally you may even want to consider having as much as 1 year's salary in savings given the length of time it's likely to take to get a new job even for a perfectly qualified, marketable individual.

But once you determine this plan, you MUST have discipline to stick with it. An undisciplined individual has no business carrying that sort of debt.

I think that a person shouldn't take on debt that there is any reasonable chance they will default on. And if you don't have a strong financial plan or you do not ADHERE to your plan...then it is irresponsible. BUT--I think that if you are responsible about it, it's OK.

Disclaimer: I am NOT a financial advisor or analyst. Please see your financial advisor for qualified advice on your personal situation; don't go based on an opinion on an online forum.

I'm not trying to be cocky or anything, but I just don't think being financially responsible is that hard if you're not a total moron.

 

[Agent Richard07]

I've got seven cards and plan to get more. I just like collecting cards and making use of the various points programs they offer. I won't get a card if it doesn't have a points program. I also pay my balance off in full every month. I've never made a minimum or partial payment.

 

[Mr. Laser Beam]

Repeat of my earlier question: How many of you only get cards from banks you already do business with? For those who don't, how do you decide which banks?

 

[Agent Richard07]

Repeat of my earlier question: How many of you only get cards from banks you already do business with? For those who don't, how do you decide which banks?

I have accounts at two banks and one of my cards is from that bank. I actually got the card first and figured that I might as well open an account with them so that I could get their debit card since it also helps build points on the same program. I don't have a card from my other bank, but plan to get one when I'm eligible to get the annual fee waived.

I pick cards that offer points programs I can make use of. I don't consider the interest rate since I never pay it.

 

[BigFoot]

Repeat of my earlier question: How many of you only get cards from banks you already do business with? For those who don't, how do you decide which banks?

I got my VISA (my only credit card) from my main (and only) bank.

 

[WillsBabe]

I think I had 3 credit cards at one point, but I never used them so the companies in question wrote to me telling me to use 'em or lose 'em. I have one card now, with the princely sum of £66 owed on it. I'll repay it when the bill comes. I think credit is like a great many things, if used wisely it can be a good thing, if not, a bad one. A couple of years ago, a couple of days before pay day, M&S had a 25% discount sale on its clothes. I didn't have the money in my bank account to shell out on a load of clothes so I put them on my credit card. Two days later I was paid and I paid off the credit card before the bill even arrived. I think that is a good example of when credit cards are useful. Had I waited to buy the clothes I would have paid 25% more. (Of course the argument stands that had I not bought the clothes at all I would have saved myself more money still, but that's a different argument! ) On the whole I use my card so infrequently that the last time I used it, it was declined because it was 11 months out of date!

 

[BlobVanDam]

I don't have a credit card. I use a debit card instead. You need some form of credit card in this day and age, but I don't like the idea of credit. I'm young with erratic income and lower expenses, so I prefer to only spend what I have.

 

[Mr. Laser Beam]

^ Do you do a lot of online shopping? Remember what I said about that. If you shop online with a debit card and hackers get ahold of your account information, they can go right to your bank account and drain it dry *instantly*. With a credit card, you can dispute the charge and not be out any money while it's investigated.

True, most banks with any shred of human decency will let you dispute a charge with a debit card as well, but that can take time. You don't get your money back as quickly as you lost it. If an outstanding check or other charge comes in while you're getting that investigated, it'll bounce. With a disputed charge on a credit card, no money changes hands in the first place.

 

[BigFoot]

I just wanted to add that I only spend what I can actually afford. So earlier this year, I ordered a new bed (with a new mattress) and a new couch. Well, I put both purchases on my credit card. I had enough money in my account to pay for everything, however using a CC is just more convenient.

I also shop online quite a bit (mostly Blu-rays and video games) so I'd be screwed without a CC.