...

[Lord Jade Cross]

...

[Anomaly Q3Xr]

I never even got credit cards until 2 years ago (in my mid 30's), and only took out two small payday loans prior, I have always avoided getting into debt.  However, it has also meant that I have not been able to get/do certain things, such as get a better computer that would be more sufficient for my needs (which is the most important thing in my life), or even drive (simply too expensive, but I have now decided never to anyway due to anxiety).

 

My father is now 72, and has never had a credit card or loan in his life, but my mother after she left my Dad has gotten into swamps of debt.  The problem is society, particularly in the United Kingdom and the United States, has very little way for most people to be able to afford certain things without getting into debt, which is just another way for others to make money off of that.  Until I went on to disability I was working 90 hours a week (18 hours a day, 5 days a week) for quite a few years, I rarely took holidays, never took time off sick, and my Dad was the same throughout his life (still working now he is "retired"), and yet neither of us have anything to show for it, we can't afford a decent vehicle, a home, (or in my case a better PC), because our society is made to benefit those already well off.  

[Gray Watcher]

Credit cards are a useful tool but they can be trap.  You might consider putting your card in a drawer and using debit cards instead for day to day living.

 

For bigger purchases, create a savings account if you don't have one already and every month "pay yourself first". That is, put a given amount ($100 for example - whatever you can afford) directly into savings and never touch that money unless a) it's an actual emergency, or b) you have saved up more than enough to get the most important item you have been saving for.

 

Money is hard.  A lot of people make mistakes and the system practically encourages that.

[Anomaly Q3Xr]

I use my credit cards once a month for small purchases (usually my food delivery) and then pay it off.  I only got them to build up my credit score which was lucky as I needed a decent score recently when I moved into private renting.
 

3 minutes ago, Gray Watcher said:

Credit cards are a useful tool but they can be trap.  You might consider putting your card in a drawer and using debit cards instead for day to day living.

 

For bigger purchases, create a savings account if you don't have one already and every month "pay yourself first". That is, put a given amount directly into savings and never touch that money unless a) it's an actual emergency, or b) you have saved up more than enough to get the most important item you have been saving for.

 

Money is hard.  A lot of people make mistakes and the system practically encourages that.

I agree entirely, this is great advice.

[Sally]

No, I don't think we're still living with a 60s mindset.  I experienced the 60s, and there was much less emphasis on "charging" everything because using credit cards was still very new -- they didn't come out until the earlfy 50s.   Before and for some time after that, people generally paid on time:  they bought things at stores and paid for them bit by bit, and didn't take them home until the debt was fully paid.

 

More generally, the ideology of doing things now and paying later -- whether involving actual material goods, educational courses, or anything that a person feels makes their life worthwhile, including emotional investments in relationships -- seems to have solidified over the last 4-5 decades, until it's seen as the majority belief system in America.  Perhaps it's related to the sense that life has become even more uncertain, or the feeling that it's not good to limit yourself in what you think is your due, or a combination of those attitudes and others. But I see it as very strongly coloring how Americans view life now. 

[Lord Jade Cross]

On 8/20/2021 at 3:35 PM, Sally said:

More generally, the ideology of doing things now and paying later -- whether involving actual material goods, educational courses, or anything that a person feels makes their life worthwhile, including emotional investments in relationships -- seems to have solidified over the last 4-5 decades, until it's seen as the majority belief system in America.  Perhaps it's related to the sense that life has become even more uncertain, or the feeling that it's not good to limit yourself in what you think is your due, or a combination of those attitudes and others. But I see it as very strongly coloring how Americans view life now. 

...

[Lord Jade Cross]

On 8/20/2021 at 12:33 PM, Gray Watcher said:

Credit cards are a useful tool but they can be trap.  You might consider putting your card in a drawer and using debit cards instead for day to day living.

 

For bigger purchases, create a savings account if you don't have one already and every month "pay yourself first". That is, put a given amount ($100 for example - whatever you can afford) directly into savings and never touch that money unless a) it's an actual emergency, or b) you have saved up more than enough to get the most important item you have been saving for.

 

Money is hard.  A lot of people make mistakes and the system practically encourages that.

 

[Gray Watcher]

10 minutes ago, Comrade Jade Cross said:

Im trying to make all my purchases cash, all the time cuz once cash is out, you know you can't move, which kind of forces you to be more frugal every time

An excellent plan

[Sally]

3 hours ago, Comrade Jade Cross said:

Im trying to make all my purchases cash, all the time cuz once cash is out, you know you can't move, which kind of forces you to be more frugal every time

And you also know that you don't owe anything, which has always made me feel more secure.  

[Epitaph]

Always been a trap. The cards exploit psychological weak points in people, in that it's just so easy to use and rely on. You move slower with cash. But like I figure, I'd rather be plain broke because I can survive on nothing over being broke and owing. Watch the trends in the coming years. There's a push to remove cash as a physical thing. Under the table work isn't traceable in physical cash. Imagine all that extra money they'd gain if currency became a hundred percent traceable?

[daveb]

I use cash, debit card, credit card, etc. They are all just tools. It all depends on how you use them. It can take discipline and care.  

[GingerRose]

60's mindset: Women don't need charge cards.

[bare_trees]

On 8/20/2021 at 11:37 AM, Sam M said:

 I only got them to build up my credit score which was lucky as I needed a decent score recently when I moved into private renting.

That's 100% why I even got a credit card, which is such a twisted thing about our society.  You have to go into debt to prove that you're trustworthy?  No credit is just as bad, if not worse, than bad credit.  This isn't a 60s mindset (credit scores are a newer concept than that), but it's definitely a way that we're set up to be screwed financially.

[uhtred]

Credit is useful in a few situations where a purchase now lets you live more efficiently. 

 

Buying a house on credit lets you stop paying rent.  Buying a car on credit may let you commute to a better job, save money by shopping at more efficient stores (less of an issues today), etc.

 

Buying regular necessities (like food) on credit should be viewed as an emergency measure.  Sure, you need to eat, but if you need credit for food, you must cut your expensese somewhere if at all possible

 

Using credit for entertainment is almost always a bad idea. 

 

BTW - I'm talking about long term credit. Using a credit card by paying the entire balance each month is always fine -thats a convienence. and no actually interest is charged. 

[Sally]

I have only one credit card; thus I'm not considered to have as good credit as someone with 3 credit cards.  

[daveb]

I only have one credit card and my credit is good.

 

[Anomaly Q3Xr]

I have two credit cards, I have very good credit, it took me three years to build it up from poor (which was from not having credit prior).

[Guest]

I don't have a credit card at all and my credit is good.

[Nick2]

I use a credit card but have paid it off every month and have never barrowed money and am debt free as a result.  Pay cash for most things.  Still write paper checks as well.

[Gentle Giant]

21 hours ago, Nick2 said:

I use a credit card but have paid it off every month and have never barrowed money and am debt free as a result.  Pay cash for most things.  Still write paper checks as well.

Same with me.

[Sally]

On 8/21/2021 at 10:38 PM, daveb said:

I only have one credit card and my credit is good.

 

Me too.   I owe nothing except for month-to-month bills such as internet/phone, etc.  I pay my credit card off each month.  

[Nick2]

I still wear my bell bottoms.😄

[Lord Jade Cross]

On 8/22/2021 at 12:52 AM, uhtred said:

 

BTW - I'm talking about long term credit. Using a credit card by paying the entire balance each month is always fine -thats a convienence. and no actually interest is charged. 

...

[Sally]

2 hours ago, Comrade Jade Cross said:

Actually, no. I did a little experiment if you will, and found out that banks (or at least the one with I have a credit card with) actually holds off the payment transaction so that interests are generated and once they are, then they attribute the payment. You will still have made the payment on time and don't get any late fees, but the bank doesn't play by the rules, which doesn't surprise me in the least, but it has strengthen my resolve to not use credit

My credit card company allows me to determine when the payment will be credited.  I usually pay it off on the day I receive the on-line notice of what I owe.  If I didn't choose a day, they would apply my payment on the last day of the period, and if there were an electronic mixup, it might be applied later and I'd be charged interest.  

[uhtred]

6 hours ago, Comrade Jade Cross said:

Actually, no. I did a little experiment if you will, and found out that banks (or at least the one with I have a credit card with) actually holds off the payment transaction so that interests are generated and once they are, then they attribute the payment. You will still have made the payment on time and don't get any late fees, but the bank doesn't play by the rules, which doesn't surprise me in the least, but it has strengthen my resolve to not use credit

My cards are on auto-pay and I never have any credit fees.  (the credit card make money from the vendors)

[MarRister]

🤷‍♀️ I put all my charges on my credit card and basically never use cash or debit. I get cash back on my credit card and pay no annual fee for it, so that is free money as long as I pay my bill on time which I do, so I see no downside to it (for me personally). As far as I know my credit is good, but it has been a while since I've needed to get it checked. I also have my student loans which I pay without fail so that would also contribute to my credit score.

 

Credit scores are bonkers though. Like it is good for your credit score to have a diverse array of debt, it is wild really lol. 

 

I think we do still have some 60s mentality about some things, but I'd see that less to do with credit and more that post secondary education will get you a good job, and if you just pull up your bootstraps and work hard you will have money for what you need and a home and a car and your family. Wages have stagnated while inflation keeps on rising, so increased credit usage is a symptom of the problem.

[Sally]

1 hour ago, MarRister said:

Credit scores are bonkers though. Like it is good for your credit score to have a diverse array of debt, it is wild really lol. 

 

If you have a number of credit cards/other sources of debt and you pay them regularly, that IS good for your credit score.  It shows you are financially reliable.   

[Lord Jade Cross]

...