After credit card debt then what?

[Keen]

Re: After credit card debt then what?

I see your point as well Ima, and I don't disagree that it sounds like it is working very well for you and your DH.

Just putting out another point of view on the site,

I will never worry about what card has the best 0% deal, the best cashback, or having a CC that I use just to prop up my credit score. I just don't concern myself with CC's...

Kinda like a vegitarian, its not for me but I don't try to convince them to have a hamburger with me...Live and let live.

It's working for us,

[Keen]

Re: After credit card debt then what?

On a side note Ima, I am not sure what you mean by "I do not have a debit card because that might cause a problem for me."

Can you explain?

[Ima saver]

Re: After credit card debt then what?

Well, I started budgeting using the old fashioned envelope system many years ago. When I pay my bills, I put the amount of the money I owe in my checking account to cover the checks. I never put in anything extra except the money I accumulate to pay the once a year house insurance and house property tax.
So if I used a debit card or ATM, there would not be any money in there. I always keep a little extra cash in my misc. envelope and of course, in an emergency, I have several money market and savings accounts locally.
I tried putting my husband check in the checking acct. and just tracking everything on paper, but that didn't work for me. I had to go back to the old fashioned "money in each envelope" system.
Do you know what I am talking about?

[JoyJoy]

Re: After credit card debt then what?

Keen your point of view is well taken. Like you said, "We are all doing well better than most and should be very proud". My brother-in-law agrees with you 100% as he despises credit cards. He believes in using cash only and no credit. My sister,on the other hand believes in using credit cards and you can imagine the chaos when finances are brought up in their home!!

Come November, 2006 my plan is to only use AMEX and continue receiving the double reward points. Capital One will have its home in our home safe for a long time to come and its longevity can continue to build. I will not close the Cap1 account as my credit history would revert to zero in that Amex carries no revolving monthly balance.

Congratulations to you also in being able to use only a debit card and no credit cards at all.

[Snoopy2645]

Re: After credit card debt then what?

Another idea is if you do use one for day to day purchase you may want to have access to pay that online so you can pay it as often as you like instead of at the end of the month getting the bill & being overwhelmed

[JoyJoy]

Re: After credit card debt then what?

LOL Snoopy! I didn't think anyone else thought like this. I pay our Amex bill every two weeks just for that reason.

[CRFSaver]

Re: After credit card debt then what?

When I paid off my credit cards and student loans I got an American Express card for the main reason it forced me to pay it off. Now I have the financial discipline (as well as income) that I should condiser a Visa since its accepted in more places.

[JoyJoy]

Re: After credit card debt then what?

I agree with you CRFSaver that the Amex card does require discipline and one should have a Visa or Mastercard (or a debit card with the Visa or MC logo) for the places Amex is not accepted. Two cards, to me, is more than enough. WTG!!

[BCHGRL]

Re: After credit card debt then what?

I have paid off my credit cards in the past. But I found no way around it when it came to financing our wedding. After our wedding in April, I expect our credit card balance to be around $10K. The interest rate is 9%. We will pay $1,500 a month until it is paid off. We both get extra paychecks a few times a year and that will go towards it too.

Once we get it paid off (October 06 is my goal), then we will put a portion towards the principle on our home and another portion will go towards our savings each month.

I'm really not stressed about paying it. We're maintaining our $8K in savings, and my car is paid off and his will be next month. If had run up $10K on stuff like e-bay or Home Shopping Network, then I'd feel bad. I don't feel bad about using a credit card for my wedding because otherwise we'd have to wait another 2 years to get married, and we've been dating for 4 and engaged for 1.5 years.

[Keen]

Re: After credit card debt then what?

Bchgrl,

I don't understand, you are putting 10k approx of your wedding on a CC and planning on paying $1500 a month to clear it off all of it off by 10/06 (8 months from now)

...but it you saved cash for the wedding it would take you another 2 years?!?! I don't oject to anyone using CC's but those numbers dont make sense to me....

Am I missing something?

[Ima saver]

Re: After credit card debt then what?

The american express that we have does allow you to make monthly payments, we do not have to pay it all off everymonth. But we do. It is only used for purchases for building a house. I deduct from that house's account, every time we use it, and pay it off when the bill comes in.
I would not spend 10K on a wedding if I had to charge everything, but knowing me, I wouldn't spend that much if it was given to me. I would keep the money and have a cheap wedding. I spent $100 on my last wedding.

[Lostsoul33]

Re: After credit card debt then what?

Ima, I'm with you. I wouldn't spend 10k on a wedding either. We got married in the Justice of the Peace backyard with only 2 friends accompanying us. A very cheap wedding and we're going on 9 years of happiness. I realize that everyone has different priorities though.

[TBH]

Re: After credit card debt then what?

Hey, BCHGRL, go for it. Sounds like you have a plan you're comfortable with, and it sounds like you're committed to not paying CC interest on that 10K for years to come.

Congratulations.

[sweeps]

Re: After credit card debt then what?

10k isn't very much for a wedding, especially if you live in a big city. You (hopefully) only do it once -- it should be a big deal.

[baselle]

Re: After credit card debt then what?

You know, Keen, you raise a good point - with debit cards, bank cards, ATM cards, and internet banking, if you have substantial savings and credit history, do you really need a credit card specifically? Back in the day if you wanted to make a big purchase or travel overseas, unless you wanted to visit a brick and mortar bank between the hours of ten and three, you had to use a credit card. Hence the "emergency" aspect.

After I paid off my credit card, I took the payment and put it into the emergency fund, then savings, then fixed investment. Its fun watching the interest rate turn into interest yield.