Unquestionably, yes. What often happens is that the, "Buy now, pay later," factor kicks in. This leads to people frequently buying that which they essentially cannot afford but believe they will be able to do so by the time the bill comes in.
I worked for almost twenty years in both retail and business banking (fortunately now long gone from it!) and have seen horrific examples of people getting in to horrendous difficulties in this respect.
I agree with Packerpack, it's all down to the maturity and willpower of the card holder. I have no bother paying my card off monthly. The trick is simple-don't spend more than you can comfortably pay off.
I think that there is truth to both of these opinions. Maturity and willpower do seem to be of limited supply in todays 20-somethings (and beyond). I think that you need to have a credit card in today's society for emergencies, and to build credit, but that there are many people who should try leaving theirs frozen in a block of ice in the freezer. Then they have it if they need it, but the urge to spend compulsively is reduced by the amount of effort it would take to get the credit card.
Nope! I dont have one but I really think with all that crap with Wall Street and Credit Card companies that I really want to live in a tree and negociate if one walnut is better with a squirrel or fight over vegtables with a rodent in my backyard.
Screw that crap, sorry but if there's going to be more work ethics as bad as it has been with that stuff who wants anything to do with a credit card?
I think the reason so many people get in trouble with Credit Cards is because they buy into (no pun intended) the false sense of security that the little piece of plastic offers them. They rationalize their overspending by thinking "I don't have the cash for this purchase but I have X amount on my card and can pay it off later." Meanwhile, they are spending more than they are bringing in, barely making minimum payments and paying ridiculous interest rates all so they can have the latest "thing."
No. Buy what I can afford and pay at end of the month. Or just buy what I absolutely need, and if it's more than I can afford at that moment, I only buy it if I know I have the money to pay it off in savings if needed.
Credit cards definitely make me spend more;actually they don't "make" me,they make it too easy to pile up the debt. One simple solution is to carry your credit card statement with you at all times . When tempted to buy on credit ,just whip out the statement and that should stop any temptation you will have.LOL
saying credit cards MAKES you spend more money is like saying McDonald's MAKES you fat.If a person is an impulsive shoppser, they will be, with or wihtout a credit card. But it is easier to go crazy with a card........dont ask me how I know......
Definitely not. I only have one credit card and I only use it for the points. Also, I only ever use it if I already have the cash for it in the bank. The only debt I carry month to month is my mortgage payment - if I want a new car or the newest gadget I wait until I have the cash (also, by waiting a month or two the price usually goes down on most new things!). If more people lived within their means or actually below their means, America wouldn't be in such the huge mess it is now. I knew someone who actually froze their credit cards in water in the freezer so that if they wanted to use it they had to go home and wait for it to thaw out - usually by that time they realized they didn't really need whatever it was they wanted.
YES for most because it's a bank/rich-person stating, "here is some money for you to borrow and pay me back later, though, I will charge you about 20% of the cost for using it." Okay!
No is for those who only see it as a security blanket or a bad temptation.
Either way, it's advantageous to have because whether one uses it or not, it gives you the advantage of adding more $-bills to one's name/portfolio. And, here in the U.S., a lot of us want to be defined by how many $-bills we have behind our name, or, we want that extra power in case of emergency so that we don't plunder.
If we spend it on frivolous things, we might regret it later and become angry with our own self for having such debt behind our name. If we get caught in an emergency, it is a lifesaver, but, with consequences--we have to pay it back, obviously. But, no big deal if one has other forms of security--savings, insurance, etc. Overall, I think credit cards just give a false sense of power, but, are useful in case of emergency.
I find I can usually ignore the siren call of the credit card. Leaving them home does help but most stores can just look you up under your phone number, so that doesn't always work. Love the ice block idea, though. Might suggest it to a couple of friends . Seriously, though, I find it hard not to overspend at Christmas, and the cards certainly make it easy to go over budget.
They can be a tantalizing trap for the unwary...hell even the credit savvy people can get caught over spending - and if you pay minimum payments, the interest will kill you...speaking from experience here LOL...
It always depends on person to person how they take the credit card. If you will see it as a plastic money, you are supposed to spend more but if you know, you have to repay the amount on time, you will not swipe it unnecessarily. I have just written a hub on the smart use of credit cards, to know the credit cards better and do not make it as a burden for you.
That's really nice frankiectlus. But in India, if you want to book some flight tickets, you must have a credit card. They do not accept cash, I faced this problem two years back. Also there are things that you wanna buy online and can pay only by credit card. So if you are using your card where there is a need, it does not harm in any way. For me, I have always found it helpful.
If I need to pay for something with a card, I will use my debit card. Same as cash. If there is no money in there, than I can't afford it. But I do understand the need for plastic. Not having a credit card does cause some entertainment.
Absolutely yes, I spend more with a credit card - and I never go over my limit. I would spend less if I didn't have a card with me since I rarely carry any cash. I also spend more when I do carry cash. In short spontaneous spending goes up.
If you pay off credit cards by getting a loan out, aren't you in the same position still?Maybe a loan won't have interest increase like credit cards, but what is the best way to get out of this situation for good?
My husband and I are looking to buy a house in the upcoming year. We have run into some trouble looking for a lender because our credit is, for lack of a better term, crap! I am looking for ideas on how to raise our scores. We pay our bills on time, so that isn't the...
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