Vermonster wrote:I would disagree. While most of us see Credit cards, as you said earlier, as a way to make a small percentage back on purchases that you are going to make anyway, there are other reasons to use them.
I sent my car to the shop and it quickly turned into a $5000 bill. New engine plus a few other little things quickly adds up. I was in the middle of school, and my boss had just moved across the country, so I was now in charge. The last thing I need to think about was whether I had enough money in my checking account to pay for this all. Putting everything on the credit card meant I could pay one bill at the end of the month and figure out where the money was coming from after I got my car back on the road.
In our current situation, not having one of our two cars leaves us with either a $300/week rental, or a $0 per week paycheck. Maybe I'm alone here, but I think credit cards are by far the best option for emergency use. A few extra dollars in interest is sometimes better than the alternative.
I like how you take my words out of context with the simple cut when quoting so I am quoting you entirely.
You mentioned that you didn't want to think about how you were going to pay for the entire bill at once but rather worry at the end of the month and that's exactly how credit cards work. You purchase something and within a grace period you can not worry about paying it off whether you have the funds in the bank or coming in a paycheck
Otherwise it would simply be a debit card
And I would strongly advocate against the latter because it's a tough hole to dig out of once in.
There's no judging on my part of people who carry balances on Credit cards for whatever reason--I would never say that there is no reason people should carry balances on credit card
Life happens, we know that.
However, more and more folks are not able to put aside money to save, that's scary in of itself.
But I think if people even had the means they don't think they do, because certain things are essential to them and I guess that's where it gets sticky
Because not everyone has the discipline to do so
I'm a huge fan of things well made and that comes at a high price unfortunately.
So instead of spending money on cable, fast internet or expensive electronics I limit myself to a tv with public channels, $10 internet and a two year old iPad and iPhone.
I put x amount of money aside every paycheck that if at the end of the year I don't touch because I was able to budget well and not get into too much emergency trouble--I take that money and I treat myself something nice, or I roll it over to next year.
I do that because after trying to put aside money myself it is HARD. If money is in my checking account; I will spend it through my cc.
Which is why I have my direct deposit split three ways so that helps me discipline myself better.
I can't stress enough for folks to save, and not resort to taking equity out of houses, or doing reverse mortgages, unless it's absolutely absolutely necessary. Like you cut so far down you're eating rice and beans for breakfast, lunch, and dinner alternatively between the two.
Just my two cents but whatever folks wanna do, they'll do