champu 1 #26 September 28, 2006 QuoteDo you pay off your credit card debt, and have a small balance in the bank, and enjoy the thought you have no C.C. debt - Or leave the balance on your C.C. and enjoy the thought that you have $$ in the bank? The solution here is to make more money and become rich. That way you can be debt free, have lots of money in the bank, and still buy whatever you want. Quote Share this post Link to post Share on other sites
Dumpster 0 #27 September 28, 2006 The bill just came in - Payday is tomorrow - I'll be writing out the check and sending it in - !!! Only thing I've got going on a CC on a regular basis is my dish bill - That will be transferred to my Discover card, so I'll get my measly 1% back - (Discover gets paid every month no matter what, otherwise the "cash back" means nothing -) Now to get my savings built back up where it should be! (I need a new Cypres in the spring---) Thanks y'all! Easy Does It Quote Share this post Link to post Share on other sites
Ron 7 #28 September 29, 2006 1. Save a small portion as an emergency fund. Say your car blows a tire and you need to buy one....So put about a grand aside 2. Use the rest to pay off your debt. Now here is where I diverge from many economic advisers. 3. Start a retirement plan. Most will tell you to pay off things like a car payment. Not a bad idea, but use compounding interest to help you and start putting some away for the future. The problem with waiting to start your savings until you are bad debt free is that life always happens and just when you think you are goingt o be debt free, you get into trouble or do something "money stupid" such as take a skydiving vacation, buy a new rig, or a new car or boat. So don't wait, start saving as soon as you are Credit Card debt free. Pay debts down in this order: 1. High interest CC to lower interest. Try to consolidate the debt if possible since it is much easier to pay ONE big payment than several smaller ones. 2. Car. 3. Student loans 4. House."No free man shall ever be debarred the use of arms." -- Thomas Jefferson, Thomas Jefferson Papers, 334 Quote Share this post Link to post Share on other sites
SpeedRacer 1 #29 September 29, 2006 correct, except for the bit about the house. by all means, make regular payments, but do not make overt attempts to pay down your mortgage beyond that. make it a Long Mortgage, and pay off as little as possible each month & each year. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
Broke 0 #30 September 29, 2006 no Min on the HSBC online account. I only have 20 bucks in mine. I will put some more in when I get a chanceDivot your source for all things Hillbilly. Anvil Brother 84 SCR 14192 Quote Share this post Link to post Share on other sites
Butters 0 #31 September 29, 2006 A note about a post above ... Do not save $1,000 in case of emergency. Pay off credit card then use credit card in case of emergency. The idea is to have credit readily available (which you will if you pay them off) and not be paying interest (which you will if you save the money)."That looks dangerous." Leopold Stotch Quote Share this post Link to post Share on other sites
mailin 0 #32 September 29, 2006 Um... why the heck would you want to pay off a credit card only to run it up again?? WOuldn't it make more sense to just have that money already saved up so you don't end up owing money to someone else in the long run? Or even worse, paying interest on it? The problem with that logic is that you never truly get out of debt that way!! I'd love to know where people got this fasination that credit cards are good and necessary. They didn't have them 50 years ago and I have a feeling people actually had savings and were prepared for emergencies... unlike the present time.Arianna Frances Quote Share this post Link to post Share on other sites
jheadley 0 #33 September 29, 2006 I know Dave Ramsey's philosophy is the most important thing is having a 1000 dollar emergency fund, then step two, pay off your debt. I believe step three is make a bigger emergency fund, one that you'd be able to live off of for a few months. Step 4, steal underpants. Step 5, ???? Step 6, Profit. Quote Share this post Link to post Share on other sites
Dumpster 0 #34 September 29, 2006 I'd prefer to have a cushion in the bank for emergencies rather than use a card for that purpose. For online purchases, you can use a debit card pretty much anywhere you can use credit cards. I use my Discover card for gas - I pay that in full and get to keep the bonus. Every month I get 5% off different places - If I need something there, I take advantage of it. But the trick is to pay the full bill! CC is paid off now, next step is paying off the bike - Then all I have is the house and my truck payment. Truck is leased - Last time I'll ever lease!!! Cards can be useful, but I don't think they're as neccessary as many people have been led to beleive. Easy Does It Quote Share this post Link to post Share on other sites
mailin 0 #35 September 29, 2006 QuoteCards can be useful, but I don't think they're as neccessary as many people have been led to beleive. Thats the right attitude!Arianna Frances Quote Share this post Link to post Share on other sites
Shotgun 1 #36 September 29, 2006 QuoteI'd love to know where people got this fasination that credit cards are good and necessary. I don't think they're necessary, but mine are good... I pay for everything with either my Discover card or my Amazon Visa... I don't pay any fees for either of them, and no finance charges since I pay them off every month... Discover sends me around $300-400 a year in cash back, and Amazon sends me a $25 Amazon certificate occasionally (I mostly use the Discover card). Ok, I'm probably not one of their favorite customers, but I like my cards. Quote Share this post Link to post Share on other sites
Butters 0 #37 September 29, 2006 QuoteUm... why the heck would you want to pay off a credit card only to run it up again?? WOuldn't it make more sense to just have that money already saved up so you don't end up owing money to someone else in the long run? Or even worse, paying interest on it? The problem with that logic is that you never truly get out of debt that way!! I'd love to know where people got this fasination that credit cards are good and necessary. They didn't have them 50 years ago and I have a feeling people actually had savings and were prepared for emergencies... unlike the present time. It is good to have some savings. The idea behind what I stated is this. Situation 1: You have $1,000 of CC debt and $1,000 in savings. The interest owed on CC is greater than interest earned on savings. You lose money every month w/out an emergency. Situation 2: You have $0 of CC debt and $0 in savings. There is no difference in interest owed on CC than interest earned on savings. You lose no money every month w/out an emergency. Now begin to place money in your savings. Does this make sense?"That looks dangerous." Leopold Stotch Quote Share this post Link to post Share on other sites
SpeedRacer 1 #38 September 29, 2006 actually, if you have NO credit card debt then you would GAIN a little money every month from the interest in savings. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
freeflir29 0 #39 September 29, 2006 QuoteCards can be useful, but I don't think they're as neccessary as many people have been led to beleive. I have one credit card. I think it has a $500 limit on it but to be honest..........I haven't used it in years. I don't even know if it still works. If I need a card I use my debit card. I have never had a problem with it being accepted. Even in Iraq. ( I think that comapny "bills" out of Greece) I don't need no stinking credit cards!!!! They USED to be necessary but the consumer needs have changed and they have pretty much outlived their usefulness. Quote Share this post Link to post Share on other sites
mailin 0 #40 September 29, 2006 Although it works for you, the majority of americans do not pay off their credit cards each month... which is how credit card companies have become some of the wealthiest. I find it hard to believe you get anything for free from these companies, someone has to be paying for your 'cash back' - they aren't in business to lose money.Arianna Frances Quote Share this post Link to post Share on other sites
Shotgun 1 #41 September 29, 2006 QuoteI find it hard to believe you get anything for free from these companies, someone has to be paying for your 'cash back' - they aren't in business to lose money. Which is why I say that I'm probably not one of their favorite customers. Quote Share this post Link to post Share on other sites
Butters 0 #42 September 29, 2006 QuoteAlthough it works for you, the majority of americans do not pay off their credit cards each month... which is how credit card companies have become some of the wealthiest. I find it hard to believe you get anything for free from these companies, someone has to be paying for your 'cash back' - they aren't in business to lose money. I get things for free because I always pay everything I owe each month. If you do not always pay everything you owe each month then you are the one giving me free things. Thank you, I like my free things. The CC companies earns money on each purchase and earns money on interest. If everyone always pays everything they owe each month the CC companies will still earn money from the purchases. However, the interest allows them to increase profits and offer benefits."That looks dangerous." Leopold Stotch Quote Share this post Link to post Share on other sites
Mostly_Harmless 0 #43 September 29, 2006 They rely on the majority of the cardholders not to pay off there cards but use things like cash back as a reward to get you in. Getting back $300 a year is nothing if you are paying $2000-$3000 in interest on items your brought years ago. My Amex One card offers me 1% back on all purchases. 1% is a very small amount but since I pay off my credit card every month (no balances) it works out in my favor because I am still getting free money. Plus they deposit that amount in a high yields savings account which makes it even more worth it to me. *Edit to add* I use my Amex to buy pretty much everything (jumps, gas etc..>). I do this because I know I will pay it off each month and it is building my credit so that when it comes time to buy a house or w/e my line of credit will be good._________________________________________ www.myspace.com/termvelocity Quote Share this post Link to post Share on other sites
jheadley 0 #44 September 29, 2006 Also having a reward card just gives you a reason to buy more stuff, even if you do pay it off every month. So more $$$ for the cc company. I have a reward card, but only use it for gas purchases, since you can never buy too much gas. Quote Share this post Link to post Share on other sites
Dumpster 0 #45 September 29, 2006 When I get my Discover statement, they tell me where I can shop and get 5% back that month - Now of course, that store will probably enjoy some increased sales that month from Discover cardholders, many of which don't pay the full balance every month. Make sense? Easy Does It Quote Share this post Link to post Share on other sites
Diezel 0 #46 September 29, 2006 Quote I find it hard to believe you get anything for free from these companies, someone has to be paying for your 'cash back' - they aren't in business to lose money. I got a free airline ticket last year worth $1500. Never paid any interest on it because I pay it in full every month. Yearly fee is $75 though. I think I'll have enough points to get another free airline ticket next summer. Works really nice for me....not for CC company Quote Share this post Link to post Share on other sites
mailin 0 #47 September 29, 2006 Oh trust me, I know perfectly well how it works... Personally, I hate owing anyone money so I don't have a credit card anymore. If a credit card is required by any business, I don't do business there (one reason I won't open an account at B of A). I also find that getting something free from a credit card company is a bit sleazy too - the only reason you get something free is because the company is charging some poor schmuck with a balance on their card 22% interest - and I don't support that. Its like being happy at the expense of someone elses misery.Arianna Frances Quote Share this post Link to post Share on other sites
Butters 0 #48 September 29, 2006 Ok!"That looks dangerous." Leopold Stotch Quote Share this post Link to post Share on other sites
Diezel 0 #49 September 29, 2006 QuoteOh trust me, I know perfectly well how it works... Personally, I hate owing anyone money so I don't have a credit card anymore. If a credit card is required by any business, I don't do business there (one reason I won't open an account at B of A). I also find that getting something free from a credit card company is a bit sleazy too - the only reason you get something free is because the company is charging some poor schmuck with a balance on their card 22% interest - and I don't support that. Its like being happy at the expense of someone elses misery. I dont' like CC companies either. That's why I screw them by not paying any interest and riping all possible benefits Quote Share this post Link to post Share on other sites
mailin 0 #50 September 29, 2006 You have your reasoning, I have mine. I refuse to do business with companies that are slimy, and IMO credit card companies are slimy. It is much better to have money in savings to buy things or for emergies than having to rely on someone else. Owing money to others is stupid.Arianna Frances Quote Share this post Link to post Share on other sites
