Credit...

[JWG223]

I have had conversations with people who love credit, and conversations with people who think it's the devil.


Personally, I enjoy credit. I have 2 rewards credit-cards (Just applied for the 2nd one, which will offer 2% cash-back on food/groceries/gas and 1% on all other purchases, after having and managing the first (2% only on food/groceries/gas) for a little over a year, I have made several hundred dollars from it, paid only the $39 membership fee annually, and have paid $0.00 interest on it. It has made me money over the course of the year equivalent to half a case of M855 after paying my membership fee.)

Why do you like or dislike credit?

 

[RyanW]

Eh, I don't mind credit cards so much, but I also pay my bills. Now the credit GAME is a whole other story. I hate the credit system. I pay all my bills on time, usually pretty early, but since I don't finance ANYTHING, when I go to look at cars they say I have a low score. I pay my bills, I have savings, a consistent employment history, and no debt other than my house, but because I don't play THE CREDIT GAME, my scores continue to either stagnate or drop. I was up to 780 at one point, purely because I took out some signiature loans from my bank and got 4 credit cards. I didn't buy anything with the credit, I just put the money right back into the payments, I BOUGHT my credit score, which seems to be the only way to do it. I'm gonna stop, it's too early in the morning to be aggravated

/rant off

 

[JWG223]

Eh, I don't mind credit cards so much, but I also pay my bills. Now the credit GAME is a whole other story. I hate the credit system. I pay all my bills on time, usually pretty early, but since I don't finance ANYTHING, when I go to look at cars they say I have a low score. I pay my bills, I have savings, a consistent employment history, and no debt other than my house, but because I don't play THE CREDIT GAME, my scores continue to either stagnate or drop. I was up to 780 at one point, purely because I took out some signiature loans from my bank and got 4 credit cards. I didn't buy anything with the credit, I just put the money right back into the payments, I BOUGHT my credit score, which seems to be the only way to do it. I'm gonna stop, it's too early in the morning to be aggravated

/rant off

I bought my credit-score, too. It's how I plan to put myself on some land and in a house while the buying is good.

 

[olivs260]

A good part of your credit score is how much you currently have borrowed vs available credit. The people who know, say you shouldn't close things like retail store credit cards because of this. We run almost everything we buy through our rewards credit card, and pay it off each month. We end up coming out way ahead b/c of that- usually around $500 a year, cash money.

We keep up with our credit because it really can save you money when you find yourself in need to finance something. I paid cash for a couple used cars once upon a time because I didn't believe in paying interest, but since then we've gotten our credit scores high enough that I'm only paying a couple hundred bucks in interest over 4 years for a truck I wouldn't have been able to pay cash for.

Yes, you have to play their game, but I've found if you play by the rules, it can have some nice benefits along the way.

 

[topgunz1]

I like the security but it can be way too easy to get in over your head... I'm hoping to be clear of credit debt in the next 6 or 7 months. I should be clearing my first card out this month and am considering a debt consolidation loan from the credit union I do security at to clear the second. I figure money owed to a bank is much better than owed to a credit company at retarded interest.

 

[olivs260]

I like the security but it can be way too easy to get in over your head... I'm hoping to be clear of credit debt in the next 6 or 7 months. I should be clearing my first card out this month and am considering a debt consolidation loan from the credit union I do security at to clear the second. I figure money owed to a bank is much better than owed to a credit company at retarded interest.

Debt consolidation loans are a win-win. You can usually save a ton of money by getting a MUCH lower rate than what you're paying on your card, and if you deal with a bank or credit union you trust, the customer service is infinitely better.

 

[Nomad.2nd]

I have had conversations with people who love credit, and conversations with people who think it's the devil.


Personally, I enjoy credit. I have 2 rewards credit-cards (Just applied for the 2nd one, which will offer 2% cash-back on food/groceries/gas and 1% on all other purchases, after having and managing the first (2% only on food/groceries/gas) for a little over a year, I have made several hundred dollars from it, paid only the $39 membership fee annually, and have paid $0.00 interest on it. It has made me money over the course of the year equivalent to half a case of M855 after paying my membership fee.)

Why do you like or dislike credit?

Quite simply, I don't like bills.

I have six bills at the moment:
Rent
Utilities
Insurance
Insurance
Cell
Netflix

And I'll be eliminating several of them in January.


Convince:
Debit cards do everything a credit card will, and DESPITE what CC pushers tell you... if they have the Logo... they offer the SAME protections.
(I say this is someone having his stolen 2x)

Money savings:
the 1%-2% 'cashback' is DWARFED by the 9-12% MORE you will spend with plastic vs cash.
(Many debit cards also offer this feature, and I've gotten close to 4%... I put up a thread on this, in this section a little over a year ago)

Control issues:
Non-issue for me, bordering on a control freak, but people can get into 'issues' with debt.

You need it:

I've (Quite literally) NEVER borrowed money in my life.

It may surprise some that I'm actually thinking of doing it.
My plan was to find 10-20 acres and build a house, all for cash.

But I found 80 acres that I like. I could still pay cash, but it would remove my 'buffer' and to build I'd have to liquidate some stuff.

SO I'm contemplating debt for the first time in my life.

Found a land bank, 30 year mortgage is a non-issue, merely off the fact that I paid 4 bills for a couple of years and have no BAD credit!

(I wouldn't be considering it except the note is only a fraction of my Retirement.)

-If I were out of school I'd not do it, but I have the free time to build in the next year, whereas after that I'll have the higher income, but no time.
IF I decide to do it I'll most likely pay it off in 3 years.

I've bought 12 (I think) Cars and motorcycles for cash...

You get a better deal for cash... (People see that stack of hundreds, and give in. Guy wasn't going to come down 15% on my 4 runner till I started stacking hundreds...)

I really can't see the point...

 

[JWG223]

Quite simply, I don't like bills.

I have six bills at the moment:
Rent
Utilities
Insurance
Insurance
Cell
Netflix

And I'll be eliminating several of them in January.
I hate bills too, but at 25 and not being born into money, I have a choice. Stuff and bills, or no stuff and no bills. I'm trying to balance it. I have: Rent, car-note, electric, internet, phone, auto insurance.

Convince:
Debit cards do everything a credit card will, and DESPITE what CC pushers tell you... if they have the Logo... they offer the SAME protections.
(I say this is someone having his stolen 2x)

Money savings:
the 1%-2% 'cashback' is DWARFED by the 9-12% MORE you will spend with plastic vs cash. I buy what I want, eventually ending up with the same stuff. I do tend to buy it sooner with a CC though, but it's the same as cash because I pay it off every couple of weeks anyway.
(Many debit cards also offer this feature, and I've gotten close to 4%... I put up a thread on this, in this section a little over a year ago)
My bank does not offer that debit card, and it would not build my credit-rating if they did.
Control issues:
Non-issue for me, bordering on a control freak, but people can get into 'issues' with debt.
Yes they can.
You need it:

I've (Quite literally) NEVER borrowed money in my life.
I have, and plan on borrowing more before it is said and done. I put other people's money to work for me instead of my own if at all possible. Making money with the bank's money is a good deal if you do it right. Besides, after the bail-outs and taxes, I consider their money, my money.
It may surprise some that I'm actually thinking of doing it.
My plan was to find 10-20 acres and build a house, all for cash.
I think you can do it, it will just take time and hard work. Based on your PM's, you know that already.
But I found 80 acres that I like. I could still pay cash, but it would remove my 'buffer' and to build I'd have to liquidate some stuff.
I have been looking for good land for a bit and am frustrated as hell.
SO I'm contemplating debt for the first time in my life.

Found a land bank, 30 year mortgage is a non-issue, merely off the fact that I paid 4 bills for a couple of years and have no BAD credit!
Considering that you say you never borrowed money before, you have NO credit, which will mean your interest rates will be very ugly. The bank paid me to lower my interest rates (cash-back credit-card) and it has saved me a ton. I suggest developing some credit. My grandparents lived like you claim to have their whole lives, but when they tried to finance something, noone would take them on. Nevermind that they own everything from their house to multiple cars to plenty of land and have not cleared less than 6 figures a year for the last 20 years my grandpa worked. No credit history=fail.
(I wouldn't be considering it except the note is only a fraction of my Retirement.)

-If I were out of school I'd not do it, but I have the free time to build in the next year, whereas after that I'll have the higher income, but no time.
IF I decide to do it I'll most likely pay it off in 3 years.
Good call. Buy it now at the right price, and inflation and economy is the bank's problem. Not yours.
I've bought 12 (I think) Cars and motorcycles for cash...

You get a better deal for cash... (People see that stack of hundreds, and give in. Guy wasn't going to come down 15% on my 4 runner till I started stacking hundreds...)
I have found that it doesn't matter. Cash is cash. Whether a bank handed it to you, or you saved it up over a period of time. People don't care where it came from. It all looks the same to them.

I really can't see the point...

I cannot see why you fear properly managed debt, aside from a potential loss of income that we all face being able to de-rail things. I consider it calculated risk, and disability insurance, etc. for the job covers a lot of it.

 

[JWG223]

Primary mortgage = OK

Everything else, including car - save the money, save the interest.

It comes to the question though--is the interest worth the utility of a new car with a warranty and not having to save up $20-40K to attain it, while inflation and other factors de-value the money as you are saving it rather than as you are paying it. I know which side I would rather have my de-valuing on.

 

[JWG223]

That isn't the question.

The question is whether you want "stuff" or you want wealth.
To me, money is worthless. I want stuff. Paper and its electronic substitute mean nothing to me. Assets>Cash
One of the most wealthy individuals I know (self made) wants nothing and drives a 99 Honda Accord. His wife drives a 2003 Accord. His daughter drives a 2006 Accord, which he says is worth it because she occasionally has to make a 3 hour drive home to visit. I don't understand that. You can't take it with you. Different mindsets.

The bottom line is that you don't NEED anything more than a $5,000 to $7,000 Japanese car or truck for reliable transportation. That is reality.
I would agree, except my $7000 japanese car was a POS. I'd have saved money buying a new American car like a Cobalt or something, based on money spent to-date vs. car-note on a Cobalt.
Listen for the word "want" in daily life. You'll hear it hundreds of times. The reason people aren't rich or wealthy is because they want stuff.

The idea of not having much money and borrowing a lot of money is insane, in my opinion. That opinion was formed watching people build wealth.
You are right. Us young people see older people with homes, etc. and we want them. Now. We lose sight of the fact that that is the result of their life up until we stumble across it.
Since you brought up a 20-40K vehicle, lets split that difference at $30K.

If you borrow 30, you believe you can pay back 30 plus interest, call it $33.

So save $5K, buy a Civic, and bank the other $27K.

Now keep saving. If you can save $27K you can save more.
Agree fully. That is my plan in the future, although the $5K civic isn't for me.
Buy a rental property. It is wonderful to get those checks in the mail. I **love** the first of the month.
My dad owns several. It's more headache than it's worth to me. Takes him years to find GOOD renters, and I used to work for him and have been in hundreds of homes. Renters trash stuff. Saw it all the time. That rental property is likely to cost more than it makes if you aren't VERY careful about who you rent to.
My wife and I own rentals and have investments, and she drives a 9 year old car. It is well maintained. It might get replaced next year, or the year after that, or the year after that - but you can bet your ass I will weigh how much money we pay for that depreciating asset against how much money our money could be making.
You had a stable environment to build your "wealth" in. I do not.

I feel a certain urgency to procure a house and property while the getting is good. That is my sole issue. If I knew the economy would be stable, building supplies affordable, etc. I would be all for saving up and living in an apartment for the next 15 years until I could do it. However, I feel that the interest will be pennies on the dollar compared to what building costs are going to go to if I were to save vs. finance.

 

[Nomad.2nd]

I hate bills too, but at 25 and not being born into money, I have a choice. Stuff and bills, or no stuff and no bills. I'm trying to balance it. I have: Rent, car-note, electric, internet, phone, auto insurance.

I'm 29, I remember being 25. Your actually choice is some stuff, no bills and MONEY, vs MORE stuff, bills and NO money.
I like money.

Besides, a couple years of 'not as much stuff' will set you up to the point you can keep thousands on hand, so that when you see something you want... You get it.

A couple years vs the rest of your life. Make your decision, I've made mine.

I buy what I want, eventually ending up with the same stuff. I do tend to buy it sooner with a CC though, but it's the same as cash because I pay it off every couple of weeks anyway.

No you don't... you have a car loan. (And who knows what else)

I buy what I want, WITH MONEY.

I spent $490 in the french Quarter one night... just cause I wanted to. (Along the way my $500 budget turned into a goal... I just didn't make to to Cafe du Monde)

DO WTF you want... so long as you pay your way.

I have, and plan on borrowing more before it is said and done. I put other people's money to work for me instead of my own if at all possible. Making money with the bank's money is a good deal if you do it right. Besides, after the bail-outs and taxes, I consider their money, my money.

Too bad THEY don't consider their money YOUR money... and nether do the Police!

I don't like paying people interest for something that is unnecessary.
Now, using their money to make money IF YOU TRULY ACCOUNT FOR THE COST (So many people forget paying taxes on it etc)
I won't argue with.

But that's NOT 98.7% of what we are talking about!

Your talking about STUFF, and "I want it NOW!"

Considering that you say you never borrowed money before, you have NO credit, which will mean your interest rates will be very ugly. The bank paid me to lower my interest rates (cash-back credit-card) and it has saved me a ton. I suggest developing some credit. My grandparents lived like you claim to have their whole lives, but when they tried to finance something, noone would take them on. Nevermind that they own everything from their house to multiple cars to plenty of land and have not cleared less than 6 figures a year for the last 20 years my grandpa worked. No credit history=fail.

Less than 2% higher. The interest over less than 3 years (The property is priced below market)... Not that big an issue.

But here is what you do not understand:
I CAN buy a smaller property (Which is all I really need) For cash.

But lets say I decided to pay the interest this once.

By the time I buy any other house I can pay cash (As I could now)

I've bought cars, and motorcycles for cash, piles of guns, taken trips etc...

WHY would I need to finance anything else?

If your grandparents cleared 6 figures a year (And lived frugally) they didn't NEED to finance.

WHY should I BOTHER with credit cards, car loans etc... month after month, year after year...

FOR WHAT?


Oh, and I call BS on your grandparents BTW, if they had a house and land, and income they could have got a loan.

I have found that it doesn't matter. Cash is cash. Whether a bank handed it to you, or you saved it up over a period of time. People don't care where it came from. It all looks the same to them.

Do you know HOW MANY deals I've got a 9PM just cause they guy needed the money at the opening of business the next day?

I got over $1,000 worth of .50 reloading components, press, die, etc just cause the guy needed to sell his .50 over labor day weekend WHEN THE BANKS WERE CLOSED...
(I bought the package and sold the gun and scope for what I had in it+ Gas)

I bought my Truck by taking a motorcycle ride (I knew if I bought it I could trailer the bike home) And paying for it was as simple as reaching into my pocket.

NOT 'drive hours away, look at it, come back, ask the bank, fill out papers, prove to them it's OK, drive back, buy it, take it home, and pay on it.'

I saved THOUSANDS by being able to 'reach into my pocket.

Besides, I don't like asking permission.

(THIS guy also responded to 'Today' (And it was about 6 PM several hours from home)

I cannot see why you fear properly managed debt, aside from a potential loss of income that we all face being able to de-rail things. I consider it calculated risk, and disability insurance, etc. for the job covers a lot of it.

Quite simply, without a guaronteed income... there is no such thing.

And I don't even like the thought of that.

Right now, if i want to go somewhere, do something, take someone out, or buy something...

I do it.

Cauz I don't owe anyone anything.

I know me. IF I borrow to buy this 80 acres (And I'm not sure) I'll not WANT to go spend money becuase it will be money that I could be paying down the debt with...

Freedom is the ability to tell everyone to KMA...
And as the bible says, the 'Borrower is the slave to the lender.'


OTHER THAN THAT: I've never met anyone who borrowed their way to wealth.

If yoru paying interest that's money you don't get to keep.

I don't exactly want to be wealthy, but within 4 years I only want to be working 4-6 months out the year.

ALSO: Look at lifestyles, I make less than $30,000 a year (GI bill and pension) but NOT SERVICING DEBT allows me to still save 18%+ and live a lifestyle of someone with more $.

 

[JWG223]

I'm 29, I remember being 25. Your actually choice is some stuff, no bills and MONEY, vs MORE stuff, bills and NO money.
I like money. Yep, difference of desire.

Besides, a couple years of 'not as much stuff' will set you up to the point you can keep thousands on hand, so that when you see something you want... You get it. The only thing I plan on buying is downgrading cars. Everything else I have pretty much bought in this last year.

A couple years vs the rest of your life. Make your decision, I've made mine.
That is why I want to buy a house/land soon. I can still live comfortably while paying that note. It's not a hindrance, and it is a great investment.

No you don't... you have a car loan. (And who knows what else) I listed my auto loan, I have a small loan from the bank, but I don't even really consider it. A few thousand if I recall. They just draft it out of my pay-check. It was worth it to pay my dad back for college early. Besides that, I have a CC that I pay off bi-weekly, and an LOC of $2500 that I owe something like $1900 on that I really should pay off, but the interest rate isn't bad, so I have been lazy.

I buy what I want, WITH MONEY.

I spent $490 in the french Quarter one night... just cause I wanted to. (Along the way my $500 budget turned into a goal... I just didn't make to to Cafe du Monde)
That's cool, I don't do stuff like that. I prefer hard assets to things of that nature. I spent $400 on a case of MK318SOST the other month at random, for example.
DO WTF you want... so long as you pay your way.
Exactly. I am paying all my bills and not asking for hand-outs.

Too bad THEY don't consider their money YOUR money... and nether do the Police!
That's fine, what I mean to say is, they are paying me 2 cents on the dollar to use their money and then pay them back. Win!
I don't like paying people interest for something that is unnecessary.
It comes down to utility cost. I don't view it as interest, I view it as a slight mark-up on a product for the right to have it THEN. As to my credit-cards, it's like the bank is paying ME to use them. Like I said, made a few hundred bucks so far on a card I have had for roughly a year, and just upgraded to a card with more cash-back.
Now, using their money to make money IF YOU TRULY ACCOUNT FOR THE COST (So many people forget paying taxes on it etc)
I won't argue with.
I'm not sure what you mean by taxes? We pay taxes on cash and credit-card purchases. There are no additional fees on my card, and I accounted for my $39/y membership.
But that's NOT 98.7% of what we are talking about!

Your talking about STUFF, and "I want it NOW!"
Yes...yes I am. The house and land are mainly what I am "defending" here.

Less than 2% higher. The interest over less than 3 years (The property is priced below market)... Not that big an issue.
I understand, but it's still 2% you didn't have to pay, on top of the 2% you could have been making back on all your food/gas purchases. yet you refused to do the credit-card thing, even though you cannot argue against it, much like I insist on wanting to finance my land/house and have it before I am 30 instead of saving until I am 50 and being iffy on whether or not it's even attainable anymore and having to live in an apartment or travel-trailer for 20 years while I save.
But here is what you do not understand:
I CAN buy a smaller property (Which is all I really need) For cash.
...but will you? It sounds like that's not what you really want.
But lets say I decided to pay the interest this once.

By the time I buy any other house I can pay cash (As I could now)

I've bought cars, and motorcycles for cash, piles of guns, taken trips etc...

WHY would I need to finance anything else?

If your grandparents cleared 6 figures a year (And lived frugally) they didn't NEED to finance.
No, they did not. Times were also different back then. Things cost proportionately less. They virtually built their house as they paid for it.
WHY should I BOTHER with credit cards, car loans etc... month after month, year after year...

FOR WHAT?
To make money. If you do it smart and on YOUR terms, you always win. 0% interest car loans are a sick deal!

Oh, and I call BS on your grandparents BTW, if they had a house and land, and income they could have got a loan.
Not with 0 credit history and not wanting to put money or collateral down.

Do you know HOW MANY deals I've got a 9PM just cause they guy needed the money at the opening of business the next day?Probably a ton.

I got over $1,000 worth of .50 reloading components, press, die, etc just cause the guy needed to sell his .50 over labor day weekend WHEN THE BANKS WERE CLOSED...
(I bought the package and sold the gun and scope for what I had in it+ Gas)

I bought my Truck by taking a motorcycle ride (I knew if I bought it I could trailer the bike home) And paying for it was as simple as reaching into my pocket.

NOT 'drive hours away, look at it, come back, ask the bank, fill out papers, prove to them it's OK, drive back, buy it, take it home, and pay on it.'

I saved THOUSANDS by being able to 'reach into my pocket.

Besides, I don't like asking permission.

(THIS guy also responded to 'Today' (And it was about 6 PM several hours from home)

I understand all of what you are saying, but what you are missing in my case is that I finance things because I CHOOSE to, not because I need to. If you are "living on credit" there is a problem. If you are USING credit, what's the deal? It's when credit uses you that there is a problem.


Quite simply, without a guaronteed income... there is no such thing.

And I don't even like the thought of that.

Right now, if i want to go somewhere, do something, take someone out, or buy something...

I do it.

Cauz I don't owe anyone anything.

I know me. IF I borrow to buy this 80 acres (And I'm not sure) I'll not WANT to go spend money becuase it will be money that I could be paying down the debt with...

Freedom is the ability to tell everyone to KMA...
And as the bible says, the 'Borrower is the slave to the lender.'
I agree, but it's owe the man, or live in a travel-trailer. I'll owe the man for a while.

OTHER THAN THAT: I've never met anyone who borrowed their way to wealth.
I bet you have met someone who paid off their house and loved living in it for the past 20-30 years, though, and now has a very nice piece of property worth a lot more than it cost them.

If yoru paying interest that's money you don't get to keep.
It's paying for the privilege of owning something, which is all about utility cost.
I don't exactly want to be wealthy, but within 4 years I only want to be working 4-6 months out the year.

ALSO: Look at lifestyles, I make less than $30,000 a year (GI bill and pension) but NOT SERVICING DEBT allows me to still save 18%+ and live a lifestyle of someone with more $.

My Dad is a master of money-management, making about what you do and owning 10 acres of very nice property with multiple houses (the whole neighborhood), and having owned 'vettes, planes, boats, and other such toys. However, my other grandparents (not mentioned until now) financed things, and they too own a nice property with a nice house on it and had the joy of living in that house for decades longer than my father has had the joy of living in his. Both ended up with houses paid off, one got to enjoy it for several hundred percent longer.

 

[c10seven]

I have recently(January of this year) changed my mindset on debt and having it. I am working very hard, and have so far been very successful in getting myself out of debt and not using it anymore. I would rather take the money I am paying to debtors and invest in some way to build wealh so that I can retire at some point and not have to struggle to live, my dad is currently doing this and he is one of my sources of motivation. Yes I want stuff and will get stuff but only when I can pay cash, regarless of how long it takes to save it. As soon as we made our first written budget in January it was quite sobering to see how much money we were throwing away on nothing, that was enough for me to realize I/we as a family had to change our ways.

 

[Nomad.2nd]

It comes to the question though--is the interest worth the utility of a new car with a warranty and not having to save up $20-40K to attain it, while inflation and other factors de-value the money as you are saving it rather than as you are paying it. I know which side I would rather have my de-valuing on.

Quite simply, it's not.

There is NO 'utility' over a new car vs say... something a couple years old and THOUSANDS less. (I could go on, but I have PT shortly)

I've bought one bike and one car over $2,000...

And I've been stranded 2x.

BOTH times I knew it was likely.
Once I was trying to nurse it to a particular mechanic, the other time I knew it might happen, but I made (Literally) over $5,000 on the trip, I sold the car for $1, (Time was worth more than a couple hundred bux) Paid a guy $20 to take me to a rental company, rented the car, and Called my mechanic and told him to hurry
on the truck he was fixing up for me!


SPEAKING OF devaluing... that new car drops MUCH faster than your cash! (And you can protect your cash!)


More later... off to Physical Therapy.

 

[JWG223]

Quite simply, it's not.

There is NO 'utility' over a new car vs say... something a couple years old and THOUSANDS less. (I could go on, but I have PT shortly)

I've bought one bike and one car over $2,000...

And I've been stranded 2x.

BOTH times I knew it was likely.
Once I was trying to nurse it to a particular mechanic, the other time I knew it might happen, but I made (Literally) over $5,000 on the trip, I sold the car for $1, (Time was worth more than a couple hundred bux) Paid a guy $20 to take me to a rental company, rented the car, and Called my mechanic and told him to hurry
on the truck he was fixing up for me!


SPEAKING OF devaluing... that new car drops MUCH faster than your cash! (And you can protect your cash!)


More later... off to Physical Therapy.

Be safe/get better!

I agree that a car is a crap form of monetary investment. However, my $7000 japanese car has left me high and dry quite a bit. I would have been better off not having UNEXPECTED expenses from it, and would enjoy much more to be rolling around in a lightly used American car that was only a year or two old without worrying about "what's going to die next".

Further, I enjoy cars. It's a hobby. That would be like me picking at you for owning some of the stuff you do when cheaper items would have sufficed. You own it because you like it. Same here.

 

[davidd]

My standard advice about credit to those who ask and are not financially savvy is to keep it simple:

1. If you use credit cards, pay them off every month.
2. If you buy a house, don't buy anything you cannot afford using a 15 year loan.

You'd be surprised how well the rest of your financial life can fall into place if you follow those two simple guidelines. It sort of enforces the need/want situation. Of course, I'd like to be able to pay cash for my house(s). Nomad, I do envy you on that.

 

[topgunz1]

Once I get out from under this card I plan on not using the dang thing again unless I can pay it off. Next year will be looking into houses... already have the lot, just need a house built on it.

 

[c10seven]

The way I look at the whole pay off credit card every month thing is, if I can afford to pay it off every month I can afford to buy whatever was bought with the card without it. Just have to get over instant gratification and wait till I can afford it, if by the time I can afford it I no longer want it then I must not have wanted it too bad to begin with, also I now have that much more money in savings.

 

[olivs260]

The way I look at the whole pay off credit card every month thing is, if I can afford to pay it off every month I can afford to buy whatever was bought with the card without it. Just have to get over instant gratification and wait till I can afford it, if by the time I can afford it I no longer want it then I must not have wanted it too bad to begin with, also I now have that much more money in savings.

I think of it completely differently than that. I much prefer to use plastic over actual cash or checks, so it's either a credit card or a debit card. My debit card is just instant access to what's in my bank account. No more, no less. My credit card gives me 2% cash back on most things. So basically, everything I buy is 2% cheaper than I'm paying for it. It's not much, but it ends up being around $500 a year. That's a decent chunk of change for doing nothing differently than I would have done with a debit card.

Well, I guess the one difference is that my bank account gets hit 1x/month instead of dozens of times. No big deal there though.

 

[charliepapa]

Once I get out from under this card I plan on not using the dang thing again unless I can pay it off. Next year will be looking into houses... already have the lot, just need a house built on it.

cut it up now and leave the account open. you can continue to make payments and just ask for a duplicate card if you ever pay it off.