How can you you set up an automatic monthly payment when the amount to pay off the CC in full will vary from month to month?

Also, isn’t it better to VIEW your credit statement every month to check for errors and overspending, rather than just blithely think that your auto-paying has the situation covered?

I myself use a CC, but I do pay it off every month. I’m also fortunate that I do not like to shop and see it more as a chore than entertainment, so I do not have issues with impulse spending. I know others have different attitudes about shopping and I can fully understand the stance of eliminating credit cards to eliminate the temptation to overspend.

I am happy that you provide an avenue to discuss personal finance, however I must disagree with you in regards to credit cards.

A person who understands all the rules associated with credit cards can only logically conclude that credit cards are a boon to their personal finance.

Using a credit card does not promote spending more money than you would with cash. People who say otherwise are simply trying to give credits a negative image because of their prior bad experiences with credit card debt.

If you have good enough credit (I cannot give an exact score) to qualify for a card that gives 1% cashback on all purchases, and potentially more on supermarket and gas station purchases, you should always use your credit card as opposed to cash. Why? The answer is simple and follows from a logical analysis. If you pay with a credit card you will save 1% of your purchases, while if you pay with cash you will receive 0% of your purchases.

Never get a card that has an annual fee.

Set up automatic recurring monthly payments to your credit card from your banking account for the full balance.

Check your credit card account and ensure you are not near your credit limit.

While everyone’s situation is different, anyone can benefit from 1% savings on purchases. For example, if you spend $5,000 annually on purchases that could instead be made with a credit card, you would save $50 a year without doing any work besides applying for the card and setting up the automated payment system. Not to mention, tracking your spending habits is actually easier to do with a credit card as purchases are recorded automatically. With cash, you will inevitably spend money on something and forget to record it.

The only real problem I have with credit cards is the potential for big brother to inspect your life. However, I tend to believe that if anyone really wanted to spy on me and had the ability to access my accounts, they would also be able to find out whatever they wanted through other means.

I got the BB and HD in 2002 when we bought our first condo. We bought a washer/dryer 0%, and stuff paint the house on HD 0% and got the 10% off. We paid it off in 1 year and threw the cards in the dresser after the day we opened then. Then they sat and never saw daylight.

About 3 years later we moved and we again bought a washer/dryer, and more house stuff and again did 0% financing and we asked for the 10% off discount. So we pulled out the cards and used them. Again they went into the drawer. And they were paid in full after the 18 months.

Will I ever use them again? I do not know. But because of the CC I do get BB coupons in the mail, but I only use the card for planned purchases.

How is a CC different from a check register? It’s not. If you don’t have the money to buy something cash don’t buy it. I don’t go into HD and BB unless absolutely necessary.

I know my tracking of our spending for 7 years we do not shop period. It’s a conscious decision to spend anything.

Also think of it this way if you “pre-loaded” your card and only spent it on planned expenses, there is no difference between it and a debit, except you get float, more protection, and better rewards.

Also I track my spending so at any given time I know what I’ve spent like your cash envelopes. If I get to $200 eating out I say no more for the month. It doesn’t matter if it’s on the card or not, i just can’t spend anymore period.

So it’s really not a problem to use a store card. I’ve never been in a kohl’s, and in a penney’s or sears for years. It took 2+ years to step into a walmart (and then only with friends who needed to go after dinner). So spending just isn’t in our cards.

Although I did spend a horrific weekend shopping for a sofa.