Stop Using Credit Cards! You're Throwing Money Down the Drain!

[nikked]

Unless you are one of the minority who actually PAYS OFF the credit card every month, you are wasting money on interest. After going through Financial Peace University, boy did we ever learn a lot. We haven't accumulated new debt in about six months, including having our FIRST debt-free Christmas ever. It was liberating! Hard... but LIBERATING!

So, cut up those cards and stop paying interest. You'll be glad you did!

 

[esavvymom]

Agreed! The so called money you earn or points, are outweighed by the fees and interest. We use ours for online purchased, large purchases, and items i buy for scouts and then expense. We earn points and use for airline miles to see the grandparents or bring them to us. Well, I have to spend $25,000 to get one ticket. Cheaper to buy the ticket! I suspect if you do the math, you would find similar on the cashback and other points. Even double miles cards, that
is more than $10,000 to get a $300-500 airline ticket or other item?

It is WAY too easy to spend more than you should with a credit card. With cash, you are going to be a bit stingier!

 

[Admin Greg]

So, cut up those cards and stop paying interest. You'll be glad you did!

Certainly you must pay off each month for it to be rewarding. But you can easily set your credit limit to something you can afford. Even as low as $500/m. Just because they give you $5000/m limit doesn't mean you have to take it.

Even double miles cards, that
is more than $10,000 to get a $300-500 airline ticket or other item?

Even if it takes you 3-4 years to get that, it's worth it. With cash you get nothing. There are lots of reward cards with no annual fee.

 

[Jennie4PC]

I have one credit card almost paid off but we have used it for medical bills. We do have an awsome intrest rate (less then 6%). Medical intrest rates are much higher then that.

 

[gailz2]

Making good use of credit cards that offer rewards back (cash or gifts or miles) is just a matter of discipline--only charge what you can actually pay off totally every month--then make sure you put that money aside to pay it off on time. We earn cash dividends back on ours and pay no annual fee and no interest.

 

[kam]

Making good use of credit cards that offer rewards back (cash or gifts or miles) is just a matter of discipline--only charge what you can actually pay off totally every month--then make sure you put that money aside to pay it off on time. We earn cash dividends back on ours and pay no annual fee and no interest.

Agreed!

I have never paid interest to any major credit card (VISA, etc) and only once ever paid interest on a dept store one (and that was because I did not complete the transaction thru billpay online all the way...and I called and they reduced the amount).

I use my credit cards instead of writing a check or paying cash - not becaues I can't pay with a check or cash.

So, no, I am not rich or lucky. I just can't stand paying interest. The irritation of paying interest outweighs any desire for a product.

I have one credit card almost paid off but we have used it for medical bills. We do have an awsome intrest rate (less then 6%). Medical intrest rates are much higher then that.

But, if you have to pay interest ANYWAY- then it doesn't matter where your best rate is -- as long as you find a good rate.

 

[Jennie4PC]

that's why we use the card. Less intrest and reward points

 

[monicag]

Unless you are one of the minority who actually PAYS OFF the credit card every month, you are wasting money on interest. After going through Financial Peace University, boy did we ever learn a lot. We haven't accumulated new debt in about six months, including having our FIRST debt-free Christmas ever. It was liberating! Hard... but LIBERATING!

So, cut up those cards and stop paying interest. You'll be glad you did!

Best thing we ever did....Financial Peace University......we have used only cash for the last 4 years and have not incurred any new debt. Debt free except for our house and car.

 

[BethCooks4U]

I pay for everything with a credit card and then pay it off each month. I have gotten over $700 in cash back in the last two years that I wouldn't have had. I am careful to keep track so I don't overspend. I pretty much buy the same amount each month on groceries and gas and then I watch other purchases to make sure I am able to pay it all when due. The only debt we have is the house and our interest rate on the new house is just 2.75%!

It's hard right now because we *need* so many things for the new house but I am putting off until tomorrow what can wait. I have paper taped onto the windows until I know I have the money for the custom blinds - should be next week. Other things can wait too. I am busy enough with unpacking that I don't need to get things ahead of myself.