Do you still use credit cards or pay now in cash?

Philippines
January 31, 2009 7:06pm CST
I know most of us, in one way or another, had been hit by this economic crisis. So when this happened, I decided to NOT use my credit cards anymore. It is a hard decision but I have to make a decision that would help me have less debt and therefore, pay less interest on those debts. So now, if I am buying something, it's either I am using my credit card or I am paying for it with cash.
6 people like this
32 responses
@oldboy46 (2133)
• Australia
1 Feb 09
We do have credit cards but seldom use them at all. When we do it is usually something that we need from a new supplier for the things for the farm or perhaps getting the vehicles serviced etc. When I was married to my now ex-wife, I had a credit card and she had one on my account as well. Problem was I forgot to cancel the card in her name when we separated and she continued to use it plus as most of my cash money was going on other things I used the credit card too. The other thing I forgot to do was change the address on it so the statements were going to our old address where she was living. I had a pretty good idea what I was spending so every week when I was paid, I would transfer that amount onto the credit card. Several months later, after being nagged by my brother and sister-in-law, I started to tidy up those loose ends and the address for the credit card statement was one. Imagine my shock when I saw this HUGE balance outstanding. My ex refused to pay it as she said she had only used it for essential things that were my responsibility. The bank said as the account was in my name, I was legally liable for the entire debt. I cancelled her card immediately and then spent the next 3 years not using the card but paying back that debt. When I met my partner, she was also was still paying back a credit card debt from her marriage. At the time she had been paying the minimum for 4 years and not getting too far so eventally afer 7 years, she cleared that debt. So since that time we have been very careful when it comes to credit cards. Each fortnight when I am paid, we draw so much money out of the bank and that has to last us for the fortnight. If we run out of money that is too bad as we do not get anything else till the next pay day. Now that there are just the 2 of us at home, we do not have any serious worries really. Every couple of months we do a huge big shop for grocery items. We take so much money from our account and that is all we spend, so if we go over the limit, we put stuff back. So for us, if it is a business expense for our small organic farm, we either put it on the account or use the credit card. Before we buy anything we make sure that the money is there or our customers will be paying us for the produce we have supplied, before the bill is actually due. For personal things, we only use cash and if we have no cash then we do not need the item. We enjoy not having big debts and not having to worry about whether we can afford to pay the or not.
• Philippines
3 Feb 09
Your experience is an eye-opener. Thanks for sharing.
@oldboy46 (2133)
• Australia
3 Feb 09
Yes it was a real eye-opener for me when it happened too and as I said a lot of it was my own fault for not doing something sooner. However now when I hear that anyone has separated, I tell them to cancel the credit card immediately or else they could end up like me. Not every former spouse would do what my ex did of course but why take the chance when yo don't need to.
• Philippines
3 Feb 09
Yeah, why take the chance. This is one of the complications of separating. We just have to deal with it.
@reinydawn (11651)
• United States
1 Feb 09
I use my credit card for ALL purchases. My credit card has no annual fee, and it gives me a 1% cash rebate on my statement every month. Since I pay my full balance every month - I don't spend my paycheck because I use the card - then it's like they're paying me now instead of me paying them. It actually costs me money to use cash or my debit card. I never charge things I can't afford, unless I can get a 0% financing arrangement and know I can save the money by the end of that term.
1 person likes this
• Philippines
1 Feb 09
hmm... Though we do pay the full balance on or before due time, and there's no annual fees, my credit card do not really give a 1% rebate... your credit card is really convenient!
2 people like this
@reinydawn (11651)
• United States
2 Feb 09
Yes, even if we didn't have the rebate, I am getting a few pennies on interest for the money that I leave in the bank while I am waiting to pay my credit card bill...
• United Kingdom
1 Feb 09
I'm absolutely sick of credit cards! I used to have a couple in the past but I decided to destroy them! I am in debt, I have no shame in admitting this. Anyway, I think that I am better of without them, there's always the tendency to spend on things that you cannot afford just because you have the credit card. There is one advantage to having a credit card and that relates to you being stuck somewhere on the other side of the world in any country. I now use a debit card and I only spend money that I can afford, this is the safest thing I think. I budget on a regular basis as well now. Happy my lotting. Andrew
1 person likes this
• Philippines
3 Feb 09
You are right. You are better off without them. I am on my way of getting rid of my debts- having rid myself of the card physically. They are not on my wallet anymore. That makes sure that I don't get tempted to use it whenever I see something that I really WANT that I cannot afford at the moment. So now, I am into debit cards or cash and STAYING within my BUDGET. I am crossing my fingers that I would get through this without much problems.
@NettyB (336)
• United States
1 Feb 09
We have paid off and canceled credit cards,using only cash now.
1 person likes this
• Philippines
3 Feb 09
That's my goal as well.
@mermaidivy (15417)
• United States
1 Feb 09
I never apply jfor a credit card, I think it would be stressful to have a credit card once you started using credit card as payment and you will keep credit it, it might get over limit that you don't even know... so I always like cash, it's most convinient payment.
1 person likes this
• Philippines
3 Feb 09
Good for you. Don't be tempted by it!
@zwitdh (47)
• Malaysia
1 Feb 09
I never using credit card, and definitely never rest of life. Paying cash helps me to manage money wisely. I also have no good permanent job right now, so its much better for me not to use credit card.
1 person likes this
• Philippines
3 Feb 09
Your decision is right.
@lazeebee (5467)
• Malaysia
1 Feb 09
We are still using our credit cards, as we usually pay in full when the statements arrive. Quite a number of the banks and hypermarkets have worked out programs when they offer discounts of 2-5% on purchases, so this helps us to save. Moreover, we are also collecting points which we could redeem for shopping vouchers or cash.
• Philippines
3 Feb 09
It is good if you are able to pay them in full each time. That way, you would not accumulate debts.
@snowy22315 (26972)
• United States
1 Feb 09
I use my credit card as little as possbile. I prefer to use my debit card. I dont use alot of cash, but the debit card works well as kind of a cross between cash and credit. it is a really nice way to be able to pay for things and I like to have it as an option when paing for things. I like it.
1 person likes this
• Philippines
2 Feb 09
I use my debit card most of the time as well. It is using the cash that I have and not a cash that I don't have like credit cards do. If I use my debit card I don't have to worry about bills coming along the way.
• Singapore
1 Feb 09
I have started using cash more often, in order to keep track of my expenses. I find that when I use the credit card, I can't keep track of my spending as much as if I were to use cash. I still have a credit card though for emergency purposes.
1 person likes this
• Philippines
2 Feb 09
That's a good way of keeping track of your expenses. Good job. I am doing the same as well.
@greenline (14865)
• Canada
1 Feb 09
Yes, I do understand what you are saying. For me, I travel a lot to foreign countries. So, when I am back home, most of the times I make payments with cash. But, when on a trip, I often use my credit cards, because I do not wish to carry too much cash.
1 person likes this
• Philippines
2 Feb 09
I do that. Although before I leave for other countries, I call the credit card company first because I don't want them to block my card. A friend of mine got hers blocked because the company thought someone was able to get into her account without permission. She did not inform the company that she's going out of the country so when they see that there is a charge from a different location, they blocked her card. What a hassle. But still, she got to know that her card is being protected.
@mscott (1925)
• United States
1 Feb 09
I guess it depends on what I am buying. We don't or are not buying any large objects that we do not have the cash for. However, I don't carry large amounts of cash around either so if I take my car in for the tune up or something like that I still use the card. I never run the bill up for more than I can pay off right away.
1 person likes this
• Philippines
2 Feb 09
You're right. It depends on what we are buying. But right now, since I am not buying anything "big", I don't have to worry about carrying big amount of cash. Right now, I'm focusing on saving.
@BinaryKat (738)
• United States
1 Feb 09
I had to stop using my credit cards because I owe on them. I decided to keep my credit cards out of my wallet so I won't have the temptation to use the credit that is on them. Now if I have to purchase something I either use my debit card for purchases especially online or cash if it something small like chips or pop. Once I have paid them off, they will be for now on used for something major like a couch or something.
1 person likes this
• Philippines
3 Feb 09
Like you, I took out my credit cards off my wallet. This helps me not use them with non-emergency expenses.
@rosapai (254)
• Philippines
1 Feb 09
I use cash.... I like that better. Save on charges and the annual fee. And I tell myself not to buy anything that I do not have the money to pay fully at that time. Of course sometimes, I regret i can't have that one thing I really want but I just console myself it may not be the time for me to have that one thing I want.
• Philippines
3 Feb 09
You're right. Only buy things that you can afford.
@nangel78 (1459)
• United States
1 Feb 09
I have to use credit cards on occasion because sometimes I have to wait in between pay days and I need gas and food. My car will be paid off soon which is great and will make my finances a bit easier. Plus I am paying off medical bills from cancer treatment that insurance did not cover.
1 person likes this
@wolfie34 (26893)
• United Kingdom
1 Feb 09
I stopped using my credit card last October, I made a conscientious effort not to use it and I took it out of my wallet in case I was tempted I have put it away and thankfully I haven't needed it, I have economized and now I pay everything by cash from petrol to clothes, and it's made a great difference, knowing that I have to pay NOW instead of the end of the month, plus I have had no near heart attacks when the statement comes through at the end of the month, so it's also healthy to me as well as my wallet LOL!
@jd107nette (1458)
• Philippines
1 Feb 09
Everything's getting really tough... Sure hope nothing worse comes in the next few months... ^_^ On the question, Yes, we still use Credit Cards...We own a small store and whenever we buy some goods in big groceries for our store, we use credit cards, not just for the reason that you can pay it after a month, but because of the safety measure it offers. It's kind of dangerous to carry large amounts of cash here... ^_^
1 person likes this
• India
1 Feb 09
well at this moment its hard to use credit card because if we cannot pay the amount back before due date then we will have to pay extra fine which is hard time at present. but well i use my credit card to pay my policies other then that i am not using my credit card for any thing , when i pay my policy i will have 45 days for my card so in this 45 days i will adjust my balance and pay back in card in this way i am in safe side, else at present i am in huge loses where i am not able to pay my policies in time well in this moment my credit card is help full to me
1 person likes this
@Marie2473 (8523)
• Sweden
1 Feb 09
I´ve never beena big fan of creditcards so I mostly use cash anyways =)
1 person likes this
@kykidd (6824)
• United States
1 Feb 09
I usually pay with my credit card, and then I pay my credit card off in full near the due date. I actually make money by doing this because my credit card pays me cash for a certain percentage on every purchase. Plus, I also keep that money in saving until I pay the bill. Therefore I am earning interest on the money. Right now ING Direct is paying about two and a half percent interest. So if you figure that plus one percent cash back, it all adds up. Every penny counts in today's world. Have a great day Bubblyapple. By the way, cute screen name!
1 person likes this
@anne25penn (3310)
• Philippines
1 Feb 09
I pay cash. I don't like using credit cards anymore because I don't have the discipline using credit cards. I only ended up in debt.
1 person likes this