And have been since college. I don't think I've carried a balance since 1999, so I know that the credit card companies are making very little off me. I do enjoy the cash back from my cards, but I do it mainly for the convenience.
What's that? My car repairs are $760 and I only have $350 in my checking? No biggie, I'll transfer money in when the statement arrives.
I've stopped charging amounts under $10. Mostly because of the looks my boyfriend gives me for charging "such a small amount" rather than paying cash. But all in all, my cards are just more convenient than trips to the ATM, and I am totally with Nora.
I've never tried these bands, but before long car trips I take two ginger capsules. Ginger helps to calm the stomach, which I suppose helps with nausea. They're also handy for stomachaches.
Hi. This is a really interesting, thought-provoking post! I have a question, though. Does this system mean that you end up with one huge bill to pay each month (i.e., the credit-card bill)? In other words, since all other bills are paid using the credit card, is the credit-card bill the only one you write a check for? Wouldn't this amount be enormous?
I think it's easier for me to pay several different bills at various times of the month, instead of one huge one. But maybe I'm not understanding...
(Forgive me. I'm NOT financially savvy!)
@Jonathan:
We do the exact same thing! I've never met anyone before who does that.
My goal is to have my expenses totally mapped out for a month and a half ahead at all times, which is why I alternate between two credit cards (one gives cash back, the other gives airline miles), with evenly spaced payment dates. I have a checking account, which holds only enough to cover the next bill, and a ING savings account, where I put the rest of my money. I always pay my credit card bills in full, and so I get a free month-long loan with bonus cash or miles. Using a credit card for all my expenses means that I can look ahead, make a note to retain the amount from the paycheck immediately before the bill is due, then save everything else. With a debit card I wouldn't have that luxury.
Maybe it's mainly a psychological benefit, but I'm very satisfied with this approach.
I have to hope that everyone with a CC DOES NOT adopt the 7 rules for CC"s.
I have been using CC's for 45 years and have NEVER paid any interest....if everyone did that the CC companies would go out of business.
So keep on spending and racking up those humongus monthly fees.....I appreciate it!
Mac
There is a difference between saying "I wanted to have kids earlier, because even if I still have debt, I will be able to provide for and love them" than crossing the line and saying "You are wrong because you have a different plan." I would say the first case, but not the second.
Same with other financial advise. I made simple suggestions to my parents and sister that they should consider a High Yield Savings account. They didn't listen, but my boyfriend did.
My parents are clearly not saving enough for retirement, but I don't bring it up. My dad said "my house is my retirement" and I commented that I didn't think that was a great idea, but left it there. I wish they would bring it up, but if they don't, I don't.
As far as friends, mine all seem financially savvy enough that it isn't an issue. We don't talk money, but no one is struggling with it.
You make it sound really good, but not everyone is as disciplined about paying off their credit card. The scenario is when people live paycheck to paycheck, and then they have an unexpected expense throughout the month, what do you think they'll pay for first? They'll probably rationalize it by saying, "well, I can just pay my credit card bill later". Paying cash or using the debit card is a much safer route unless you already have a big emergency fund saved up and you're extremely disciplined with your money management.
Check out the recipes that you can use from Bisquick to make fake quiches. No crust but pretty easy to do & although I can't do a price breakdown right now these are certainly something that we have used on more then once. They even freeze great - we made breakfast ones for our wedding brunch, some bacon & some ham. Also very easy to do assembly line production.
1) Although they aren't as good as they used to be, lots of cards still provide some insurance coverage for items you buy. Mine, for example, provide collision coverage for cars I rent. Some also provide some degree of coverage for consumer items--extended warrantees and the like.
2) If you buy something that's defective or not as advertised, and the seller refuses to make you whole, your credit card company will often reverse the charge. Federal law requires them to do so under certain circumstances, but most credit card companies have much more consumer-frendly policies than the minimum required by law.
This is about the dumbest post I've read on Wisebread. Unlike a debt card, which can do everything you mentioned, if you miss a payment your screwed. I just dropped my RSS subscription from here.
It's a recipe I just sort of fell across, but it bakes up quite flaky and makes 24 individual crusts. I put them each in a fold over thin plastic sandwich bag, and put all the bags in a couple of larger sized gallon freezer bags. I've used them from the freezer for up to 12-14 months, so they last a long time.
Point of info: you need a REALLY large mixing bowl for this, and it's a bit of work to get the bulk set of ingredients mixed to the right consistency. However, you don't have to make it often at all, and it is so great to just be able to grab one for chicken pot pie, desert, quiche, and now my new item of choice to try . . . cowboy pie. I'm really quite psyched about that recipe.
Cash allows for anonymity. With credit cards you lose all privacy. Not only is every purchase you make tracked, but every place you travel is also logged.
In a lot of states, electricity prices are still regulated, so the power companies charge whatever the state lets them charge. (In any case, consumers generally pay whatever the power company charges, because the alternative is getting your power turned off.) I haven't really looked at what effect electricity price deregulation has had so far.
Gasoline prices are posted on big signs, so there's no opportunity for the gas station to try to charge higher prices to consumers who would be willing to pay more. (Well, some gas stations charge more, hoping to capture the drivers who are willing to pay top dollar in order to get a name brand, shop at a station that's easier to get into/out of, and not to have to wait for a pump, but that's really around the edges of what I'm talking about.)
Five years ago I converted the full amount of my mortgage into a home equity line for the full value of my home. Everytime I get a 0% balance transfer offer from the credit card companies I use them to pay down my home equity line. One month before the 0% term on the card expires I pay the card off in full from the equity line and cancel the card. Currently I have about $70,000 of my home debt at 0% interest and my credit score/limit has gone through the roof! In theory someday I will be juggling all that debt at 0%!
Total BS. If you pay cash for everything (ie. debit card), there is no point to have a great credit score! And that includes buying a home! Instead of shopping for a mortgage based on your FICO score, get a manually underwritten loan that actually checks your income, assets, etc. and not your FICO. You, the author, obviously have been brain-washed by the FICO monster and you are now in the back pockets of all credit card companies and they love you for it. Pathetic article which may cause one person to actually get a credit card and overspend into debt. Why tempt yourself in the first place! Pathetic....
And have been since college. I don't think I've carried a balance since 1999, so I know that the credit card companies are making very little off me. I do enjoy the cash back from my cards, but I do it mainly for the convenience.
What's that? My car repairs are $760 and I only have $350 in my checking? No biggie, I'll transfer money in when the statement arrives.
I've stopped charging amounts under $10. Mostly because of the looks my boyfriend gives me for charging "such a small amount" rather than paying cash. But all in all, my cards are just more convenient than trips to the ATM, and I am totally with Nora.
I've never tried these bands, but before long car trips I take two ginger capsules. Ginger helps to calm the stomach, which I suppose helps with nausea. They're also handy for stomachaches.
Hi. This is a really interesting, thought-provoking post! I have a question, though. Does this system mean that you end up with one huge bill to pay each month (i.e., the credit-card bill)? In other words, since all other bills are paid using the credit card, is the credit-card bill the only one you write a check for? Wouldn't this amount be enormous?
I think it's easier for me to pay several different bills at various times of the month, instead of one huge one. But maybe I'm not understanding...
(Forgive me. I'm NOT financially savvy!)
I've used these for insanely long car rides and they've saved me many a time. Also, mine are far uglier (grey little sweatbands). I need a new set!
@Jonathan:
We do the exact same thing! I've never met anyone before who does that.
My goal is to have my expenses totally mapped out for a month and a half ahead at all times, which is why I alternate between two credit cards (one gives cash back, the other gives airline miles), with evenly spaced payment dates. I have a checking account, which holds only enough to cover the next bill, and a ING savings account, where I put the rest of my money. I always pay my credit card bills in full, and so I get a free month-long loan with bonus cash or miles. Using a credit card for all my expenses means that I can look ahead, make a note to retain the amount from the paycheck immediately before the bill is due, then save everything else. With a debit card I wouldn't have that luxury.
Maybe it's mainly a psychological benefit, but I'm very satisfied with this approach.
Yeah, the ideal customer for a credit card company is the one who holds a ton of balance and always pays on time but just the minimum payment. ;-)
I wish I had one hour to kill
I have to hope that everyone with a CC DOES NOT adopt the 7 rules for CC"s.
I have been using CC's for 45 years and have NEVER paid any interest....if everyone did that the CC companies would go out of business.
So keep on spending and racking up those humongus monthly fees.....I appreciate it!
Mac
There is a difference between saying "I wanted to have kids earlier, because even if I still have debt, I will be able to provide for and love them" than crossing the line and saying "You are wrong because you have a different plan." I would say the first case, but not the second.
Same with other financial advise. I made simple suggestions to my parents and sister that they should consider a High Yield Savings account. They didn't listen, but my boyfriend did.
My parents are clearly not saving enough for retirement, but I don't bring it up. My dad said "my house is my retirement" and I commented that I didn't think that was a great idea, but left it there. I wish they would bring it up, but if they don't, I don't.
As far as friends, mine all seem financially savvy enough that it isn't an issue. We don't talk money, but no one is struggling with it.
You make it sound really good, but not everyone is as disciplined about paying off their credit card. The scenario is when people live paycheck to paycheck, and then they have an unexpected expense throughout the month, what do you think they'll pay for first? They'll probably rationalize it by saying, "well, I can just pay my credit card bill later". Paying cash or using the debit card is a much safer route unless you already have a big emergency fund saved up and you're extremely disciplined with your money management.
Check out the recipes that you can use from Bisquick to make fake quiches. No crust but pretty easy to do & although I can't do a price breakdown right now these are certainly something that we have used on more then once. They even freeze great - we made breakfast ones for our wedding brunch, some bacon & some ham. Also very easy to do assembly line production.
Two more reasons to use credit cards:
1) Although they aren't as good as they used to be, lots of cards still provide some insurance coverage for items you buy. Mine, for example, provide collision coverage for cars I rent. Some also provide some degree of coverage for consumer items--extended warrantees and the like.
2) If you buy something that's defective or not as advertised, and the seller refuses to make you whole, your credit card company will often reverse the charge. Federal law requires them to do so under certain circumstances, but most credit card companies have much more consumer-frendly policies than the minimum required by law.
This is about the dumbest post I've read on Wisebread. Unlike a debt card, which can do everything you mentioned, if you miss a payment your screwed. I just dropped my RSS subscription from here.
It's a recipe I just sort of fell across, but it bakes up quite flaky and makes 24 individual crusts. I put them each in a fold over thin plastic sandwich bag, and put all the bags in a couple of larger sized gallon freezer bags. I've used them from the freezer for up to 12-14 months, so they last a long time.
Point of info: you need a REALLY large mixing bowl for this, and it's a bit of work to get the bulk set of ingredients mixed to the right consistency. However, you don't have to make it often at all, and it is so great to just be able to grab one for chicken pot pie, desert, quiche, and now my new item of choice to try . . . cowboy pie. I'm really quite psyched about that recipe.
Cash allows for anonymity. With credit cards you lose all privacy. Not only is every purchase you make tracked, but every place you travel is also logged.
Never invite big brother to watch you.
I've heard of the solar cooking boxes, but never this one. Cool.
I've heard of the solar cooking boxes, but never this one. Cool.
In a lot of states, electricity prices are still regulated, so the power companies charge whatever the state lets them charge. (In any case, consumers generally pay whatever the power company charges, because the alternative is getting your power turned off.) I haven't really looked at what effect electricity price deregulation has had so far.
Gasoline prices are posted on big signs, so there's no opportunity for the gas station to try to charge higher prices to consumers who would be willing to pay more. (Well, some gas stations charge more, hoping to capture the drivers who are willing to pay top dollar in order to get a name brand, shop at a station that's easier to get into/out of, and not to have to wait for a pump, but that's really around the edges of what I'm talking about.)
How come this doesn't seem to work for gasolene or electricity?
Check this out it is a cooking method used in alot of third world countries in combination with the hotbox method. http://www.solarcooking.org
Five years ago I converted the full amount of my mortgage into a home equity line for the full value of my home. Everytime I get a 0% balance transfer offer from the credit card companies I use them to pay down my home equity line. One month before the 0% term on the card expires I pay the card off in full from the equity line and cancel the card. Currently I have about $70,000 of my home debt at 0% interest and my credit score/limit has gone through the roof! In theory someday I will be juggling all that debt at 0%!
Total BS. If you pay cash for everything (ie. debit card), there is no point to have a great credit score! And that includes buying a home! Instead of shopping for a mortgage based on your FICO score, get a manually underwritten loan that actually checks your income, assets, etc. and not your FICO. You, the author, obviously have been brain-washed by the FICO monster and you are now in the back pockets of all credit card companies and they love you for it. Pathetic article which may cause one person to actually get a credit card and overspend into debt. Why tempt yourself in the first place! Pathetic....
Sure, tuna has some mercury in it but the levels are very low. Read and heed the following from the EPA/FDA:
http://www.cfsan.fda.gov/~dms/admehg3.html
... voice to counteract the more frequently heard advice to avoid credit cards!
I was curious about your choice of FF miles vs. cashback. Maybe you can work up a follow-up column about the pros and cons of various reward programs?
Backpacker's save the weight of extra fuel by using a pot "cozy". It is made to fit the pot and proved a bit of insulation.
I've found that pressure cookers are a great way to save time and fuel. REI has one that they claim is good for camping, but I use it at home.