Had a long talk with myself about my credit card use

Marie5656

Marie5656

SF VIP
Location
Batavia, NY
I have just one card...Discover. Because of the cash rewards and all. I was looking over my statements and realized I was using it WAY to much. Becoming too dependent on it. I had a my recurring and auto pays on it. My internet/ Hulu/Netflix etc. So I just finished going through all of them and switching my payment methods to my checking account only. No Discover.
I figure the reward points and cash are not worth it. I considered canceling it out right but do feel I want it for emergencies.

Now that I have all the payments off, it should be easier for me to get it paid down, and keep it low. I am only going to use it for Amazon now...and I have cut way back on Amazon purchasing (especially now that Christmas shopping is done.

Wish me luck. New Year New Me
 

Credit cards are good, ONLY, if you pay off the full balance every month. Carrying a balance, and only paying a portion of the bill quickly winds up costing more than paying by cash or check. Any "rewards" the credit card offers are far less than the interest they charge.
 

I agree that you need to pay the balance each month. I also have one credit card, Chase Freedom, and I use it for absolutely everything I can because I get cash back. I can also get gift cards at a discount. Occasionally, I will get offers for restaurants, gas stations, etc. that pay 2% or 3% back. I see these credits on my statements.

I get nothing back by using my checking account, and only use it for companies that won't accept the card. But again, I pay off my balance each month. That is the key. Otherwise, use checking so you can more closely monitor the expenditures.
 
I have been paying my Discover off in full each month. But I keep a special column in my check book for things charged to it, and if it for things like a grocery delivery or basic budget items I move that amount from my “general” column into the Disc column.so the $ is already allotted. Big stuff like the semi annual car insurance will come out of a different account.
And since I thought with inflation & all I might want to spread some things out, I recently got them to lower my annual interest rate based on my good history.

To me the best thing about Discover is that their customer service is 100% American based, unlike some Masters & Visa that has it off shore with incomprehensible accents. And Marie, do think about that advantage before you give it up.
 
Marie5656 said:
I have just one card...Discover. Because of the cash rewards and all. I was looking over my statements and realized I was using it WAY to much. Becoming too dependent on it. I had a my recurring and auto pays on it. My internet/ Hulu/Netflix etc. So I just finished going through all of them and switching my payment methods to my checking account only. No Discover.
I figure the reward points and cash are not worth it. I considered canceling it out right but do feel I want it for emergencies.

Now that I have all the payments off, it should be easier for me to get it paid down, and keep it low. I am only going to use it for Amazon now...and I have cut way back on Amazon purchasing (especially now that Christmas shopping is done.

Wish me luck. New Year New Me
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i only have one for emergencies or for large purchases that are a necessity that i don't have enough cash for. if i don't use it for a while then i make a small purchase on it just to keep from losing it. five or 6 yrs ago when i moved to this town i got an ashley furniture credit card and bought a bed and sofa. haven't used it since and i don't see myself using it in the foreseeable future. they sent me a notice in email today that if i don't use it in the next 60 days i will lose it. *shrugs* whatever. i think you made a very smart decision Marie. hope everything is going well for you.
 
Definitely keep the card open and active. Treating the outstanding balance like a monthly bill and nipping away at it is a good strategy.

It may improve your credit score as you pay down the balance. My credit card issuer dings my credit score if my credit card balance is over 5% of the available credit line. It seems crazy to be given a huge credit line and then be penalized for using it. Go figure.

I have one credit card that is automatically paid in full each month.

I started using it more since the beginning of the pandemic. I find it easier for me than going to an ATM to replenish my cash.

I'm sad to say, using cash is becoming more and more like rarely using a postage stamp.

Good luck!
 
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Tish said:
I have one that I only use for emergencies, the rest of the time everything else is paid for by a Visa debit card or cash.
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You and me both Tish, cash has always been my preferred mode of spend. The marketing people will label me a Luddite, so what? Every week I withdraw the cash that I am going to need, seeing it slowly go down and my wallet getting thinner gives me the motivation to think about any purchase.

A couple of local businesses have helped me recently. A popular take-a-way and a rather good pub/restaurant stopped accepting cash claiming that money was helping spread the corona virus. That's two establishments that no longer damage my wallet.
 
Marie5656 said:
I have just one card...Discover. Because of the cash rewards and all. I was looking over my statements and realized I was using it WAY to much. Becoming too dependent on it. I had a my recurring and auto pays on it. My internet/ Hulu/Netflix etc. So I just finished going through all of them and switching my payment methods to my checking account only. No Discover.
I figure the reward points and cash are not worth it. I considered canceling it out right but do feel I want it for emergencies.

Now that I have all the payments off, it should be easier for me to get it paid down, and keep it low. I am only going to use it for Amazon now...and I have cut way back on Amazon purchasing (especially now that Christmas shopping is done.

Wish me luck. New Year New Me
Click to expand...
Marie, the reward points aren't worth it only if you pay interest on balances each month. Paying those bills monthly from your checking account obviously means you are not allowing yourself to overspend. Perhaps you can manage to do that when using your card as well. It takes discipline, of course but unless you allow yourself to go into overdraft, you're already using discipline when paying by check.

This year I got back $393 in cash back rewards from my credit cards. That's enough to pay my utility bills for 5 months. I never pay interest because I pay them in full each month. Over the past decade I've gotten back over $6,000 in cash back rewards. That's enough to pay my carrying charges (housing) for 10 months. Talk about motivation! Back when I was "poor girl" I learned the value of never paying interest. so haven't paid any interest in 50 years. Then when credit cards started offering points and cash back, I learned how valuable those are. I realize everyone doesn't mange their budgets the same so best of blessings in whatever you choose to do.
 
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I have several Credit Cards... I would never pay bills using them.. unless, and god forbid I was ever broke...( I know some people have little choice financially)...

I pay mine off in full every month.. I'm fortunate to be able to do that...

..I use my debit card and cash most of the time... but sooner or later probably sooner than we'd like, Cash will not be accepted anywhere, and then you will technically only have money on paper.

Once the govt have control of your money they have control of everything you do....
 
It has taken me a lot of time to be a better money manager. I used to suck at it back in the day. It is really hard, and a continued battle. But I am trying. I am working on planning and sticking to a monthly budget, Having SNAP benefits (food stamps) and HEAP (heat allowance that pays electric company directly)
 
Marie5656 said:
It has taken me a lot of time to be a better money manager. I used to suck at it back in the day. It is really hard, and a continued battle. But I am trying. I am working on planning and sticking to a monthly budget, Having SNAP benefits (food stamps) and HEAP (heat allowance that pays electric company directly)
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We don't have food stamps in this country..never have had, ... I've always wondered how they work
 
hollydolly said:
We don't have food stamps in this country..never have had, ... I've always wondered how they work
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Here in the US, you get approved for a certain monthly dollar amount. Based on family make up and income. The benefits on your card do not expire. We have been getting extra since last year due to COVID
Basically they are good for any food items in the supermarket. I do not think you can buy beer...but I do not buy it anyway, The whole program is to promote healthy eating habits, so I am surprised that snack foods, candy and such are allowed. You cannot use the benefits on any hot food bar items that some stores have...I bought a hot rotisserie chicken once and it was not covered.
Right now I have almost $300 on my card because I do not spend alot just for me. But I am being more aware of buying healthy foods..lots more fruit and produce. I still shop sale items and stuff..to make my benefits go further
 
Marie5656 said:
Here in the US, you get approved for a certain monthly dollar amount. Based on family make up and income. The benefits on your card do not expire. We have been getting extra since last year due to COVID
Basically they are good for any food items in the supermarket. I do not think you can buy beer...but I do not buy it anyway, The whole program is to promote healthy eating habits, so I am surprised that snack foods, candy and such are allowed. You cannot use the benefits on any hot food bar items that some stores have...I bought a hot rotisserie chicken once and it was not covered.
Right now I have almost $300 on my card because I do not spend alot just for me. But I am being more aware of buying healthy foods..lots more fruit and produce. I still shop sale items and stuff..to make my benefits go further
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So they're not physical stamps ?.. and you can keep accruing the money if you haven't spent it, just like any kind of social security benefit payment ?.. is that correct ?
 
hollydolly said:
So they're not physical stamps ?.. and you can keep accruing the money if you haven't spent it, just like any kind of social security benefit payment ?.. is that correct ?
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Yes. They used to be paper,,but now they are loaded onto a card..size of a credit card. You swip it and enter in a PIN code. Then the amount of food items are taken off the total, and any non food remains. If I have not bought any non food items then I do not have to shell out any money, of course. Yes, you keep accruing money.
But in pre covid times, someone like me would only have a $20 r $30 benefit amount. We are getting more because of Covid. At least in New York State. Each state may be different.
 
dseag2 said:
I agree that you need to pay the balance each month. I also have one credit card, Chase Freedom, and I use it for absolutely everything I can because I get cash back. I can also get gift cards at a discount. Occasionally, I will get offers for restaurants, gas stations, etc. that pay 2% or 3% back. I see these credits on my statements.

I get nothing back by using my checking account, and only use it for companies that won't accept the card. But again, I pay off my balance each month. That is the key. Otherwise, use checking so you can more closely monitor the expenditures.
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Ditto....
 
Another way to work the credit card thing is to pay off your credit card as you go along throughout the month. For instance, if you charge $125 one week, go ahead and pay it off on Friday. Then the next week if you charge $90, go ahead and pay it off that Friday. And so on and so on. That way you can benefit from the rewards yet still keep your spending in check. And you’re never surprised by a big bill at the end of the month because you’ve been paying as you go.
(Granted, this is easier to do if you use online bill pay so can make that weekly payment with a few strokes of your fingertip.)👆
 
hollydolly said:
I use my debit card and cash most of the time... but sooner or later probably sooner than we'd like, Cash will not be accepted anywhere, and then you will technically only have money on paper.

Once the govt have control of your money they have control of everything you do....
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That's the scenario that I really baulk at, not so much the use of cards but the information given out with each purchase. Someone, somewhere, knows what I spent, what I bought, when I bought it, how often I buy and on and on. That's the same reason why I avoid loyalty cards too, it's all about harvesting our personal information.

Please don't give me that diatribe: "If you've got nothing to hide, you've got nothing to worry about." That remark is straight out of the manual of one, Paul Joseph Goebbels.
 
horseless carriage said:
That's the scenario that I really baulk at, not so much the use of cards but the information given out with each purchase. Someone, somewhere, knows what I spent, what I bought, when I bought it, how often I buy and on and on. That's the same reason why I avoid loyalty cards too, it's all about harvesting our personal information.

Please don't give me that diatribe: "If you've got nothing to hide, you've got nothing to worry about." That remark is straight out of the manual of one, Paul Joseph Goebbels.
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I never have loyalty cards either , ... but I do believe that sooner than you think we'll be a cashless society... it's very concerning
 

Had a long talk with myself about my credit card use​

The image I get from the statement above is you standing in front of a mirror carrying on a conversation with your reflection in the mirror?

Is this correct?
 
Jules said:
Good luck. It doesn’t take long for little purchases to add up.
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Devi said:
<sigh> So sayeth my husband. LOL
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I should clarify my comment. I/We don't actually use credit cards because we can't afford what we're buying. We use them because it would be difficult, for instance, to send monthly checks for things like Adobe Photoshop (I don't even know if Adobe takes checks). Or to buy online from online retailers.

That said, we buy a lot of DVDs and other miscellaneous items from places like Amazon.com or other companies that offer their items online. Those are not hugely costly, but they do add up.
 

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