Talk amongst yourselves… I'll give you a topic:

Isn’t buying something with a credit card and then not paying the complete amount off when it is due like buying something with a big sign above it saying: "Buy today and pay 20% more!!!"?  Discuss.

Posted in Finances | 10 Comments

10 Responses to Talk amongst yourselves… I'll give you a topic:

  1. raven says:

    I almost never use my credit card. If you don’t have the money you don’t need it…UNLESS it’s something like an item for a renovation or house repair, which you can afford to pay in installments but not outright. That’s the only time I find a credit card of any use. Credit card companies thrive off the poor to middle class – many of whom seem to think a credit card is a get it free card and end up way over their heads.

  2. Nicole says:

    Ooooh I love love love this topic Dixie! Like Linda Richman would say “I get all verklempt” when I think about using my credit card if I can’t pay off the whole amount by the due date so if I can’t, it doesn’t get used.

    That being said, there is nothing I love more than pulling a fast one on the credit card companies. I give you the following example. Buy a ridiculously expensive item (ie: dining room table) which you’ve saved for in cash, but rather than paying cash, you buy it with Visa so you get Dividend Dollars which they give you at the end of the year so you can get a nice Christmas Gift for yourself (!) and then pay off the Visa immediately with previously mentioned cash. No interest due! Bwahahahaha (that’s my evil laugh) … I love that old trick!

  3. Andrea says:

    What is also awesome about the credit card is they don’t charge you per transaction. This way you pay everything with the credit card get the reward miles don’t have to worry about extra bank fees and pay it off every month. The only thing is that sometimes it is shocking to see just how much you have spent in a month. But I do agree if you can’t pay the balance off than you are definately better off not using it. It is just unreal the high interest charges that they can get away with.

  4. Simon says:

    To answer the original question, I’ll say no. Buying something with a credit card is more like buying something with a little sign above it saying: “You don’t have the money right now? Aww, shucks! Here… use some of mine; all I ask in return is that you pay it back with a weeeeee bit of interest if you take more than a month. Mmmmm’kay?”

    Credit card purchases are rather more insidious than overt, which is what makes the companies as successful as they are. Bastards.

  5. B-1 says:

    I’m reminded of a recent Steve Martin SNL sketch where he did a small infomercial for this great new free book “Don’t Buy What You Cannot Afford”. In the sketch, the people that were having money/credit card problems were posing such timeless questions as, “Let’s say I want something, but I don’t have the money. Should I still buy it?”

    Of course, you can pay for the free book using your credit card, but only if you already have the money.

    Bottom line, unless it’s a necessity, like, say, a HOUSE, or a car, pay off your credit card every month. I have friends who buy a LOT of things on credit/layaway/monthly payments, and then they wonder why they can’t make ends meet. Hmm…

  6. Marc says:

    As a bit of shameless self-promotion, here is a link to a blog post in which I link to the sketch B-1 mentions (not sure if it’s there anymore) and I also transcribe a good chunk of the sketch: “Don’t Buy Stuff You Cannot Afford

  7. Matt says:

    It would only be 20% more after a good bit of time. It’s not like if you don’t pay it all off by the due date they just charge you 20%, but I understand what you’re trying to say.

    I would agree that credit cards are generally bad news, but they can be helpful. I buy most of the groceries for our household but do not have the money to pay for them all without my roommates cash, which they pay me at the end of the month, then I pay off my credit card. There might be a “safer” way of doing that, but I have enough trouble getting money from the guys at the end of the month;)

  8. Angie says:

    I completely agree with you Dixie. I cringe at the thought of not paying off our credit card each month. The only reason we use it to earn PC points, and we haven’t even used any in the 2 years that we have had it. I imagine we could get quite a few free groceries or movie passes by this point in time. I think there are definitely times that are okay to go into debt for (ie house, car, education) but there are a lot of poor saps out there that charge everything with no means to pay for them. And don’t even get me started on all the payday loan businesses out there…

  9. Rebekah says:

    When I was single I would just pay my min. payments and then come tax time pay off the whole card. Now that I am married to Trev things are different. He believes in paying off the card each month. It’s was something I had to get used to but I appreciate him wanting to be more financially minded than I.

    How are you doing these days???

  10. Toni says:

    I pay for most stuff with a CC, but always clear it.

    Why?

    Because over here you get a much higher level of consumer protection (that we’ve used once or twice) with a credit card.

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