Going checkless and no credit cards

[Texashiker]

How man people here do not have a checking account, and/or do not use credit cards?

My wife and I do not have a credit cards or checks.

Credit cards - Its a personal financial decision we have made, no credit cards. If we had them, we would most probably run up the bill and put our family in debt; and that is something we do not want to do. To avoid the temptation of using a credit card, and paying the interest and fees, we just do not have any.

My ex-wife, while we were married, she ran up a credit card bill between $30,000 - $35,0000. Every card we had was maxed. It took us years to pay that down, we had to go through credit counseling, collection companies were calling all the time,,,,,,,,, it was a bad time in my life. To avoid all of that again, an to avoid the temptation, my new wife and I do not have any credit cards.

Checks - life is so much easier without a checking account. We have nothing to balance, no routing number to be stolen, nothing to keep track of, no checks we have to worry about where they are,,,,,,,.

For several years my wife and I did the typical check thing, and sometimes we would go over on our account balance. The bank would cover the balance and then charge us like $20. If the amount went over $5, there was still a $20 charge.

In the long run, my wife and I decided that we could not afford the amount of money the banks and credit cards were charging.

We have been credit card and check free for over 5 years now, and it feels good.

For those that wonder how we pay for stuff, we put the money on a debit card, and pay online, or we get a money order and mail it in.

Our house is financed locally. So when it comes time to pay the house note, we just bring them the cash, get a receipt, and everyone is happy.

 

[AyashiKaibutsu]

Money on a debit card is basicly a checking account isn't it? I don't use checks generally, but I have an account (use debit card to access). I use a credit card to keep a buffer on my debit card so I don't overdraw (that and 1% off everything I buy is nice).

 

[Elganja]

it seems rather silly to live the way you do because you can't be responsible. The way you are restricting yourself is what you do with teenagers to help them learn the value of money.

credit cards can be valuable (think cash back and rewards credit cards) IF used responsibly.

bank account? i mean really? wtf... never heard of someone not having a bank account before because they couldn't keep track of how much money they had... Also, I wouldn't want large sums of money sitting outside of a bank. You're just asking to be robbed.

This has to be a trolling post...

 

[Texashiker]

it seems rather silly to live the way you do because you can't be responsible. The way you are restricting yourself is what you do with teenagers to help them learn the value of money.

When I post similar questions about credit cards in other forums, this is usually the type of answer I receive.

Let me turn that around on you - you dont think society has conditioned you to "believe" that you "have" to have a credit card?

credit cards can be valuable

I disagree with the statement "credit cards can be valuable" - credit cards are a trap. It financially enslaves you and your family to the lender.

By thinking that credit cards are good, your also saying that debt is good.

 

[rcpratt]

How do you have a debit card without a checking account?

Anyways, I'm glad you've found a way to manage your money responsibly I suppose, but I'm sad for you that you can't just use your brain and not spend money you don't have. Checking accounts and credit cards are valuable things when used responsibly.

 

[rcpratt]

I disagree with the statement "credit cards can be valuable" - credit cards are a trap. It financially enslaves you and your family to the lender.

By thinking that credit cards are good, your also saying that debt is good.

Some of us actually use credit cards without going in to debt. When you don't carry a balance, you pay no extra fees, you get rewards bonuses, and you get an extra month of float on your cash. Sounds good to me!

 

[Nik]

debit card > all other options

 

[JMapleton]

No offense, but in my personal opinion, you should learn restraint instead of just ignoring the problem.

You are missing out on a lot by not having credit cards.

The ideal way is to have credit cards and have the personal restraint not to overcharge.

Your method is like having an alcoholic being banned from purchasing alcohol. He'll still get some booze from time to time, albeit not as much, but that doesn't fix his alcoholism.

 

[PottedMeat]

By thinking that credit cards are good, your also saying that debt is good.

how? pay it off every month and you have a convenient listing of all the things you purchased. if you go over, you really have no idea how much money you have/make.

all you really need is a checking account and a credit card.

 

[OILFIELDTRASH]

debit card > all other options

Yeah using your debit card online is much safer than using a credit card.

 

[JMapleton]

debit card > all other options

Debit card = foolish move.

I work for an online retailer and debit cards cause loads of problems, which lead to overdraft fees on your checking account. Often times your double charged, or double authorized. Credits often take longer.

Debit cards have caused a LOT of problems for my customers.

They also do not have the protections credit card do and you get no rewards or points of any sort.

 

[novasatori]

how? pay it off every month and you have a convenient listing of all the things you purchased. if you go over, you really have no idea how much money you have/make.

all you really need is a checking account and a credit card.

+ better consumer protection
+ rewards / cash back
+ deferred payment

 

[TwiceOver]

So how do you get paid? Take your check to the local check scamming place where they take $3 off for every $100 or whatever? Seems like too much hastle when you could just choose to be more responsible.

I do not use the credit cards I have. Checks are a thing of the past, haven't ordered them in a long time. 99% of my transactions are done in cash. Each week I take a specific amount of money in cash to assign to my budget.

 

[novasatori]

debit card > all other options

 

[KB]

If you live that way and it works for you then thats great, but I doubt you are the norm.

I use a credit card that gives me cash-back rewards. y using credit I don't use my money, I use someone else's, and this allows my money to stay in my bank account and acrue interest for longer. Then I pay the thing in full without paying interest to the CC company, so by using a credit card I come out ahead.

 

[TwiceOver]

Debit card = foolish move.

I work for an online retailer and debit cards cause loads of problems, which lead to overdraft fees on your checking account. Often times your double charged, or double authorized. Credits often take longer.

Debit cards have caused a LOT of problems for my customers.

They also do not have the protections credit card do and you get no rewards or points of any sort.

There's so many things wrong with your post you might as well just delete it...

 

[frostedflakes]

Convenience, fraud protection, reward points, etc. Credit cards have some nice perks if you use them responsibly. But if the temptation is there to spend money you can't pay off at the end of the month, I can respect that you're trying to avoid it and keep from falling back into debt again. That puts you ahead of many people in this country. But just because you have problems managing a line of credit doesn't mean everyone else does and should avoid credit cards.

 

[Texashiker]

How do you have a debit card without a checking account?

Debt card through a local credit union. But I think that one is linked to a checking account. We do not get checks though, we use just the debit card.

Wal-mart debit card

Paypal debit card - when you sell something on a site like ebay, the money can go on your debit card.

 

[Codewiz]

So basically, you have no self control?

I have a Capital One Rewards Card that gives me two points for every dollar spent. I rarely hit a balance higher than $500.

I payoff my credit card about every other day. It is just my routine to make sure that everything on my credit card is paid for. We have automatic savings that comes out of my paycheck. If I end up having to dip to payoff the credit card, I do and I repay that money with my next paycheck. It means I lose disposable income for my next paycheck.

It is no different than paying with a debit card all the time. The difference is that I get rewards for it. I am taking a 7 day cruise(with my wife and kid) in 20 days that was totally paid for by my rewards card. It certainly didn't take very long to save up those rewards because the only thing that doesn't go on my rewards card is my mortgage(if I could do that, I would).

 

[Numenorean]

I disagree with the statement "credit cards can be valuable" - credit cards are a trap. It financially enslaves you and your family to the lender.

By thinking that credit cards are good, your also saying that debt is good.

I disagree. My fiance and I use our credit card for everything we can possibly use it for. Auto pays our satellite and phone bills and we use it for absolutely everything. We pay off the balance each cycle so that we do not get charged interest. The airline points we have earned will pay for our honeymoon to Hawaaii. Flight and hotel. We have to pay for food and other things but that is a huge chunk of money we will be saving. And we haven't paid the credit card company a cent in interest.

So how does it enslave us as responsible users? And where is the debt?

 

[JMapleton]

There's so many things wrong with your post you might as well just delete it...

Why don't you tell me, instead of in typical ATOT fashion, just saying I'm wrong and not explaining how.

Debit cards suck. They're a rip off and end up costing you money.

 

[JMapleton]

I disagree. My fiance and I use our credit car for everything we can possibly use it for. Auto pays our satellite and phone bills and we use it for absolutely everything. We pay off the balance each cycle so that we do not get charged interest. The airline points we have earned will pay for our honeymoon to Hawaaii. Flight and hotel. We have to pay for food and other things but that is a huge chunk of money we will be saving. And we haven't paid the credit card company a cent in interest.

So how does it enslave us as responsible users? And where is the debt?

+1 A credit card is only a tool. Like a gun. It can be used for you or against you. It can make your life safer or more dangerous. It's the user who determines that, not the tool.

 

[timosyy]

Credit cards just seem way safer than debit cards...

+ You get rewards.

And I don't see credit cards are a "trap". Just sign up for Mint.com or use some sort of similar software and track your spending/set budgets... I can tell you right now it wouldn't matter if my credit card had 5000% APR, because I ALWAYS pay off the balance in full every month.

 

[Texashiker]

I disagree. My fiance and I use our credit car for everything we can possibly use it for. Auto pays our satellite and phone bills and we use it for absolutely everything. We pay off the balance each cycle so that we do not get charged interest.

Perfect example - thank you for posting that.

Everything might be fine and dandy right now, but what happens when one of you loses your job? Your stuck with a large bill at the end of the month that you may not be able to pay.

One of the big problems with credit cards that people overlook, you can pay your monthly balance right now, but people lose their jobs,,, its a fact of life. Then you keep charging things, and your left with a large amount of interest and late fees.

Not everyone has enough self control to limit their credit card usage. Like I said in the opening post, my ex-wife (wife and the time) ran our family into $30,000 - $35,000 in credit card debt. For years we had no extra money to even got to the movies.

I know a lot of people pay off their credit cards from month-to-month, but I see that as standing on thin ice. At anytime either partner in the relationship could lose their job,,,, and then what? Your left with a credit card bill with reoccurring fees and interest rates.

When people lose their jobs, a lot of them use credit cards to maintain their lifestyles with the mindset - I'll just pay the bill after I get a job. Most do not realize that its going to take years to pay the high interest rates down.

 

[bignateyk]

Well you know yourself and your wife better than any of us, so if that's what it takes to be fiscally responsible, then keep it up.

Where do you keep your savings? Under your mattress? What about retirement?

edit: Personally, I have a rewards checking account that gives me 4% interest where I keep our emergency money stashed. Everything beyond that 25K goes in to retirement or toward the mortgage. I use a credit card, but I never put more $ on it than what I have in the bank, and it gets paid off every month. We have a pretty strict budget where we live off only 1 of our salaries. My wifes entire salary goes into savings/retirement/etc. every month.