Going checkless and no credit cards

[OILFIELDTRASH]

Stupid for staying out of debt?

My truck is paid for
My wifes SUV is paid for
Our house should be paid off in about 3 months

At that point, we will only have our utilities, food and house/automobile insurance,,, your usual small bills.

I seriously doubt that. If so good for you but going from a guy with bill collectors calling everyday to two paid off cars and a house in a short amount of time seems like BS. How old are you?

 

[Codewiz]

If your argument is that you don't save so you must live on cash then there is your problem.

We have easily 6 months of salary saved up. If you can't save that money, then you are living above your means. Living above your means is the problem. Not credit cards.

I could lose my job tomorrow and my credit card will be paid off without issue. Additionally most people don't have their income stop the moment they are fired. MOST places you have at least a week of pay that you haven't been compensated for.

Like I said, your problem is living above your means. Anyone who is living paycheck to paycheck is doing that. Internet isn't a necessity. TV isn't a necessity. Cell phone isn't a necessity. If you have any of those things and are living paycheck to paycheck then you have a problem.

 

[Texashiker]

I disagree. Stupid, maybe thats going too far but anyone who can't use Credit cards properly .

Credit card companies do not stay in business by people using the card "properly." If very few people carried a balance, then the companies would go out of business.

Credit card companies make billions of dollars in profits through the outrageous interest rates and fees they charge.

My family and I have decided not to play the credit card game - no more interest rates, and no more the late fees. That means more money in our family.

 

[rcpratt]

I'm on the trolling boat now.

 

[TwiceOver]

Clearly not. It all comes down to preference. And I prefer not to have purchases taken directly from my account.

Major point is that money does not come out of your account immediately with a credit card. I know several people who have gotten charged multiple times for one transaction. It happens. It's happened to me. And if you don't have enough buffer in the account to cover that possibility as well as whatever other charges/checks are outstanding that can be a real hassle to clear up, as well as possible bounced check fees, overdrafts, etc. Don't have to worry about that with a CC.

If you have had such problems in the past, I hope you moved your money to a new bank, because that sounds like a "shitty bank" that I was talking about earlier. And you should worry about it with a CC. A CC can overdraft also AND in addition to fees they'll jack your interest rate up. But, just like ANY bank account, you CAN turn off the ability for them to overdraft your account using cards.

 

[CRXican]

that is so ghetto

I love these threads

 

[JMapleton]

OK, I'll ask. What things in particular do you consider misinformation?
I listen to him quite regularly and while I'll agree his stance on credit cards is a bit extreme, but for many people (and it seems like the OP), the temptation of "free money" is too much for some people.

I'm not going to go into it too much, but it's mainly the credit card stance and some other things. You have to learn self restraint not just hide from the problem.

There was an interview recently with him where he claimed credit cards were going to be extinct because he thinks stores will begin charging two fees, one for using debt and one for using credit (which is against the credit card companies merchant agreement) and how this would cause the extinction of credit cards. He then went on to say credit cards cause overspending.....true. Well if they cause overspending, why would stores discourage their use? Contraction? I think so.

 

[IndyColtsFan]

Why would you live that way? I have a checking account and a couple of credit cards, and my wife does as well. Want to know how much debt we have, outside of a mortgage? Zero. None at all. The rule in our house is that we pay off any credit charges in full every month and we stick to the rule. For 90% of my purchases, I use my debit card. The only time I really use my credit cards is when I buy stuff online so I can have greater protection. And even then, I only do that when it is a new vendor I'm dealing with or one that has had potential security issues in the past (I'm looking at you, Monoprice). For Newegg or Amazon, I use my debit card too.

Plus, my debit card gives rewards, so I bank hundreds in Amazon cards every year. :awe:

 

[Nik]

I know people who when they had their debit card stolen, it took 6 months or longer to get their money back. With a credit card, you just deny the charges and you're done.

As for rewards, right now I have enough Amex and Discover rewards saved up for a free trip to Vegas. Didn't cost me anything. You were saying?

I had mine stolen. Within 90 minutes I had all my money back, a new card number, and a new card stamped and activated at my bank.

Didn't cost me a dime.

If I want a trip to vegas, I'll save up for it myself thanks.

You were saying?

 

[Texashiker]

If your argument is that you don't save so you must live on cash then there is your problem.

Not being to save money is not the problem. I want the money I saved to stay mine, and not be drained off by interest rates or late fees.

I seriously doubt that. If so good for you but going from a guy with bill collectors calling everyday to two paid off cars and a house in a short amount of time seems like BS. How old are you?

I'am 42 years old

My truck is a 1996 Toyota T-100. It was bought in 2001, paid off in 2005 and it has around 296,000 miles on it.

My wifes SUV is a Chevy Tahoe 1997 model

My wife and I bought our house from someone who needed to offload the note, so we took the payments over. It should be paid off in a few more months.

 

[OILFIELDTRASH]

If your argument is that you don't save so you must live on cash then there is your problem.

We have easily 6 months of salary saved up. If you can't save that money, then you are living above your means. Living above your means is the problem. Not credit cards.

I could lose my job tomorrow and my credit card will be paid off without issue. Additionally most people don't have their income stop the moment they are fired. MOST places you have at least a week of pay that you haven't been compensated for.

Like I said, your problem is living above your means. Anyone who is living paycheck to paycheck is doing that. Internet isn't a necessity. TV isn't a necessity. Cell phone isn't a necessity. If you have any of those things and are living paycheck to paycheck then you have a problem.

Exactly. Up until a few years ago I didn't have any of those. I knew a guy that had a cellphone and cable tv so he could watch NASCAR but couldn't pay his water bill.

 

[JMapleton]

If I want a trip to vegas, I'll save up for it myself thanks.

You were saying?

Yeah, if some guy walked up to you and said here are some free plane tickets to Vegas! You'd shrug them off and say, "I'll pay for it myself, no thanks!"

Do you turn down free money to? Find a hundred dollar bill on the street and say "Naaa, I'd rather save up and get one!"

I was saying? Your argument doesn't add up.

 

[alkemyst]

most illegals get by this way, also why guatemalians are mugged so often.

 

[PingSpike]

OP's trolling. Nobody can be that stupid.

I've met people with the same philosophy on credit cards, although the checking account one is new to me. A woman asked me about upgrading her PC way back, and I looked up some parts for her. I said I could install some ram if she bought it. She said she didn't use credit cards and explained a similar reason to the OP and that she got in trouble with them when she was younger. She said I could buy them and she'd pay me back but I declined on the premise that if she couldn't handle a credit card I wasn't interested in loaning her money. It was rambus ram too so it wasn't a cost I was willing to eat, plus I had no other use for it.

 

[alkemyst]

Credit card companies do not stay in business by people using the card "properly." If very few people carried a balance, then the companies would go out of business.

Credit card companies make billions of dollars in profits through the outrageous interest rates and fees they charge.

My family and I have decided not to play the credit card game - no more interest rates, and no more the late fees. That means more money in our family.

You have no idea WTF you are talking about.

A merchants pay a service fee to the CC companies. They have made their profit before your statement even hits.

There is no reason to carry a balance on most purchases.

Most of those bragging about being debt free also have no savings.

Good luck with a major automotive or home repair without credit.

 

[Golgatha]

What's wrong with debit cards? I told them just to decline the card if there ever isn't enough money for a transaction, which won't ever be the case since there is like 20 grand in there. I have a rewards checking account that gives me 4% interest on up to $25K if I use my debit card 15 times a month for POS transactions. That gives me >$1K a year in interest I wouldn't have earned at any other bank. (Most other non-rewards savings/checking are like 0.000005% interest).

I use a credit card for any online purchases or any purchases where the card leaves my sight. It's pretty easy to rack up 15 POS transactions in a month. 4 or 5 trips to the grocery store, 2 trips for dog food, 4 trips for gas, and 4 or 5 other misc. transactions.

I would like to know where you bank that you get 4% interest on a checking account.

 

[blinblue]

You have no idea WTF you are talking about.

A merchants pay a service fee to the CC companies. They have made their profit before your statement even hits.

There is no reason to carry a balance on most purchases.

Most of those bragging about being debt free also have no savings.

Good luck with a major automotive or home repair without credit.

What reason is there to carry a balance besides the minuscule amount of money you could make on interest in the bank by delaying paying a 0% portion on a card?

I'd imagine that most people who are bragging that they just became debt free probably had little/no savings because they use it to get out of debt. But come back in 6 months and ask how much they have in savings now that they don't have student loans, car loans, credit card debt, etc.

I could pay in cash any car repair I needed. And any home repair that would be beyond my savings would have been caused by something covered on my home owners insurance.


I've never been in debt, and I plan to never go into debt except for a mortgage (perhaps) that I'd pay off within 5 years.

I would like to know where you bank that you get 4% interest on a checking account.

https://www.myconsumers.org/en/personal-banking/checking.aspx
They are currently offering "4.09% APY for deposits up to $10,000.00 for Members meeting the qualification requirements"
Granted its a local place, but there a number of them out there. But yes, 4% is unusual.

 

[Texashiker]

You have no idea WTF you are talking about.

Your telling me that credit card companies do not charge interest and late fees?

There is no reason to carry a balance on most purchases.

Good luck with a major automotive or home repair without credit.

Man oh man,,,,

People that dont know how to use a credit card
Over spend
Pay for major automotive or home repair

If you can not pay cash for automotive repairs or home repairs,,, how can you pay the credit card bill off at the end of the month?

And that brings up a good point, people that put stuff on their card they could not normally afford. If you have a $1,500 car repair bill, just put it on the card and "claim" that you can pay it off at the end of the month? If you can pay it off to start with, why put it on the card? Because a lot of people can't pay for it, so they rely on credit cards.

myconsumers.org/en/personal-banking/checking.aspx
They are currently offering "4.09% APY for deposits up to $10,000.00 for

4% is 1% above the usual rate of inflation. So your money is not really growing, its just earning 1% real interest.

 

[Golgatha]

I was a "victim" of the economy when I lost my job. Why am I not wallowing in debt and having my house foreclosed on?

Lost my job in 2008 too. Amazingly I'm doing just fine even though I was out of work for 3.5 months.

 

[Golgatha]

You are a responsible adult. Reading this guys OP, its very clear that this guy and his wife are simply incapable of being fiscally responsible.

Its fine if you don't want to have credit cards because you are an idiot and can't use them. Its fine if you don't want to have a checking account because you are entirely too stupid to use it properly, but then you start blaming the banks and everything else. LOL, this thread delivers.

Actually I think the OP is very smart for realizing his limitations and compensating for them. He's also not adding to the national problem of people living beyond their means.

 

[CRXican]

Lost my job in 2008 too. Amazingly I'm doing just fine even though I was out of work for 3.5 months.

3.5 months isn't shit

I worked 3 months in 2010

 

[Texashiker]

Actually I think the OP is very smart for realizing his limitations and compensating for them. He's also not adding to the national problem of people living beyond their means.

Probably one of the best post in this whole thread so far.

Thank you.

 

[Golgatha]

Actually I'm thinking the OP has been listening to too much Dave Ramsey. He's fun to listen to, but don't take his word for gospel, and definitely don't trust his numbers.

He's pretty extreme when it comes to credit cards. The OP mentioning being Slave to the lender earlier was a clear sign he listens to a lot of Ramsey.

The fiscal numbers don't make sense in the Dave Ramsey program, but the social engineering and mental aspects of the program make sense for his target audience.

 

[rcpratt]

This guy is either dumb as a rock or just trolling. He's repeating the same arguments and not actually reading what anyone is saying. I give up.

 

[Malfeas]

Keep the credit cards, there are more consumer protection laws with them vice debit cards. Just be responsible and pay in full every month, DON'T BUY SHIT YOU DON'T NEED.