Things I Don't "Get"

[rocket surgeon]

Why I spend time on MUScoop.

still trying to figure if ya want to go in the back or the front, ey?   all depends on how much room ya have, your visibility and the safest way out.  always look both ways before pulling out

[MU82]

Agree with Cheeks on this one. Wife and I take out cash at the beginning of every month and only use cards in emergency. Helps us stay on budget.

This is an intelligent way to pay for those who are most comfortable with this kind of budgeting system. Also, if one is prone to forget to pay credit-card bills, as apparently is the case with chicos, one shouldn't use credit cards. The fees and interest are astronomical on most of them.

However, for those without these problems, it's hard to beat the convenience of paying with credit cards. I carry less than $10 in cash and use CCs almost exclusively. In four decades as a card-carrying adult, I have never once failed to pay the bill at the end of the month. Credit cards help me budget, because at the end of the month I have a record of exactly where and how I spent our money. At the end of the year, each CC provides an annual statement on how we spent money.

If any kind of fraud situation pops up, the bank associated with the credit card can advocate for the card-holder; if one pays cash, tough luck. Many CC double the length of product warranties. Many other benefits, too. Meanwhile, I get points for travel and/or cash back, depending on the card.

It's one of those things in which there is no "right" or "wrong" answer, and I totally get why some use cash.

And as chicos said, there are people out there who for whatever reason do not have access to credit cards.

[MUEng92]

My wife and I pay with credit card for pretty much everything (gas, groceries, eating out, etc) and have for basically our whole adult lives (25-30 years).  I rarely have $40 or more of cash in my wallet. We've also never not paid off a monthly credit card bill in that time.  In fact, I have no idea what the interest rate has been on any credit card I've ever had because I've never paid any.

I think of it as a badge of honor now.

[Cheeks]

My wife and I pay with credit card for pretty much everything (gas, groceries, eating out, etc) and have for basically our whole adult lives (25-30 years).  I rarely have $40 or more of cash in my wallet. We've also never not paid off a monthly credit card bill in that time.  In fact, I have no idea what the interest rate has been on any credit card I've ever had because I've never paid any.

I think of it as a badge of honor now.

You are smart and disciplined, way too many people are not.  Even worse now with people getting their bills emailed to them instead of paper.  Companies beg people to go to auto bill pay and credit card companies in turn do the same.  Less scrutiny, people don't pay attention as much.  But good for you, as you have it down pat.... your fellow Americans not so much.

[Cheeks]

This is an intelligent way to pay for those who are most comfortable with this kind of budgeting system. Also, if one is prone to forget to pay credit-card bills, as apparently is the case with chicos, one shouldn't use credit cards. The fees and interest are astronomical on most of them.

However, for those without these problems, it's hard to beat the convenience of paying with credit cards. I carry less than $10 in cash and use CCs almost exclusively. In four decades as a card-carrying adult, I have never once failed to pay the bill at the end of the month. Credit cards help me budget, because at the end of the month I have a record of exactly where and how I spent our money. At the end of the year, each CC provides an annual statement on how we spent money.

If any kind of fraud situation pops up, the bank associated with the credit card can advocate for the card-holder; if one pays cash, tough luck. Many CC double the length of product warranties. Many other benefits, too. Meanwhile, I get points for travel and/or cash back, depending on the card.

It's one of those things in which there is no "right" or "wrong" answer, and I totally get why some use cash.

And as chicos said, there are people out there who for whatever reason do not have access to credit cards.

I'm not prone to forget, I'm saying it is easier.  I pay my bills each and every month, but what I hear from customers and research of customers all the time is they forgot about the bill, it was in their email, etc, etc.

Note that in states like Pennsylvania and Massachusetts it is required by law to have a non credit card payment option.

[The Sultan]

I charge everything I can to my Delta credit card, including my cable bill, insurance, etc.  About $800 worth of monthly charges that go on automatically.  I then pay everything I can with the card as well.  The card is paid in full, on the exact day it is due.

The advantages:

1. I get the credit for the airline miles. 
2. Money doesn't leave my checking account for nearly two months after I make some purchases given the length of time the card is open and the time until I have to pay the card.
3. I track all of the purchases on one phone app, and check it at least once a day to make sure no fraud is happening.

My monthly budget is very simple:  mortgage, utility bill, credit card bill, wife's car lease payment, IRA deposits, a couple mutual fund auto deposits.  All of these are auto drafted so rarely do I write a check.  I also track all of my bank activity on my phone to check for fraud.

I got $20 out of an ATM yesterday - the first time I had cash on me in about two weeks.

Despite all of this, I *still* keep a written log in my checkbook.  Which my kids think is hilarious. 

[Juan Anderson's Mixtape]

Put me down as someone that uses the card whenever possible.  I also pay off my credit card every month.

Cash and checks are situational.  My favorite Thai restaurant is cash only.  Farmers market, cash. School fundraiser,  check.  Some home contractors prefer check.

All large purchases, I make sure I have the money to cover before I put it on a credit card.

I also don't have a budget.  Instead I track every expense and have a savings goal.  It helps that my wife and I are both thrifty.  If one of us gets a little off track, we can correct it pretty easily.

[MU82]

I'm not prone to forget, I'm saying it is easier.  I pay my bills each and every month, but what I hear from customers and research of customers all the time is they forgot about the bill, it was in their email, etc, etc.

Note that in states like Pennsylvania and Massachusetts it is required by law to have a non credit card payment option.

Didn't mean to misrepresent you. When you said, "I would rather pay cash if I can, too easy to rack up charges on cards and forget about it until the credit card bill arrives.  I either have the cash or don't buy it," I thought you were saying you no longer use credit cards because it was too easy for you to forget to pay. A zillion apologies.

Despite all of this, I *still* keep a written log in my checkbook.  Which my kids think is hilarious. 

I absolutely keep a written log in my checkbook, even though I just about never write checks. I like to know to keep tabs on what I have coming in and going out. While I'm quite sure my kids don't do that themselves, I don't think they laugh at me for doing it. They see that it's worked.

[Billy Hoyle]

I'm not prone to forget, I'm saying it is easier.  I pay my bills each and every month, but what I hear from customers and research of customers all the time is they forgot about the bill, it was in their email, etc, etc.

Note that in states like Pennsylvania and Massachusetts it is required by law to have a non credit card payment option.

That's what I love about the autopay option. I pay off the balance every month and don't have to worry about forgetting.

[Dr. Blackheart]

Let's talk debit cards.  There are no advantages.  Theft protection, return protection, building no credit rating, no 30 day interest free loan.

https://youtube.com/v/vsMydMDi3rI

[Benny B]

You are smart and disciplined, way too many people are not.  Even worse now with people getting their bills emailed to them instead of paper.  Companies beg people to go to auto bill pay and credit card companies in turn do the same.  Less scrutiny, people don't pay attention as much.  But good for you, as you have it down pat.... your fellow Americans not so much.

So wait a second.... you're taking the side of the people who aren't smart and disciplined?!?  Who are you and what have you done with chicos?

[mu03eng]

Yeah, I don't understand how people can't use the CC for everything abd/or pay it off at the end of the month. My parents use to have rolling credit on their card and I thought it was insane. Put everything we can on the cards for the purpose of points and cash flow advantage then pay it off at the last possible moment.

Free money

[Cheeks]

So wait a second.... you're taking the side of the people who aren't smart and disciplined?!?  Who are you and what have you done with chicos?

As Michael Jordan said, they buy sneakers (fill in your biz product), too.

[Lennys Tap]

Agree with Cheeks on this one. Wife and I take out cash at the beginning of every month and only use cards in emergency. Helps us stay on budget.

You realize that you are flushing a portion of that cash down the toilet every month, right?

[ZiggysFryBoy]

You realize that you are flushing a portion of that cash down the toilet every month, right?

Hey, it's his cash.  If he wants to put it in the chitter, so be it.  No one should judge.

I use cash to snort coke primarily.   I write checks for the kids' school.

[Cheeks]

You realize that you are flushing a portion of that cash down the toilet every month, right?

I'm curious why you say this.

[TAMU, Knower of Ball]

You realize that you are flushing a portion of that cash down the toilet every month, right?

I honestly have no idea what you are talking about.

[The Sultan]

When you use a credit card to pay for things, it is essentially a free loan of one to two months.  Provided you pay the card off in full, you can keep your cash in something interest bearing until you have to pay off the card.

[Cheeks]

When you use a credit card to pay for things, it is essentially a free loan of one to two months.  Provided you pay the card off in full, you can keep your cash in something interest bearing until you have to pay off the card.

What about factoring in credit card fees (yes, many don't have them).

At any rate, here's the psychology of it all and why cc is good sometimes, cash good other times.

https://www.psychologytoday.com/us/blog/the-science-behind-behavior/201607/does-it-matter-whether-you-pay-cash-or-credit-card

[Chili]

I honestly have no idea what you are talking about.

POINTS!!!! and Cash Back. Plus interest free loan.

[jficke13]

What about factoring in credit card fees (yes, many don't have them).

At any rate, here's the psychology of it all and why cc is good sometimes, cash good other times.

https://www.psychologytoday.com/us/blog/the-science-behind-behavior/201607/does-it-matter-whether-you-pay-cash-or-credit-card

I've always kinda stared blankly at banks that talk about eliminating fees on checking accounts and credit cards. I've never paid a fee for either.

[Cheeks]

I've always kinda stared blankly at banks that talk about eliminating fees on checking accounts and credit cards. I've never paid a fee for either.

I've found historically the cards that have rewards programs, at least the better programs, charge an annual fee.

That said, I use those cards all the time.  Checking fees not an issue in my experience.

[StillAWarrior]

We've also never not paid off a monthly credit card bill in that time.  In fact, I have no idea what the interest rate has been on any credit card I've ever had because I've never paid any.

I think of it as a badge of honor now.

Many years ago, after we were engaged, my wife and I found a wedding ring that she absolutely loved.  We were essentially kids at the time -- just a few months out of college.  She really wanted it.  I wanted to buy it for her.  One problem:  it was like $700...which seemed like a fortune to us at the time.

I called my Dad and asked him if I could borrow the money.  I promised I'd pay him back in two payments over the next two months.  He asked, "Don't you have a credit card?"  I answered that I did.  He said, "Use your credit card."  I told him that we couldn't afford to pay it back.  He responded, "You don't have to.  You can pay it in two months if you need to."  The thought had never occurred to me.  He laughed and said that he was now very comfortable that I'd never get myself in trouble with credit cards.

I charged the ring.  My wife and I saved everything for the next month and paid it off when the bill came.  We didn't wait the extra month.  To this day we've never not paid our credit card bill off each month.

[MUEng92]

This topic came up at work a few weeks ago and I mentioned how I have never paid interest on a credit card.  The two guys first looked at dumbfounded then it was like they were in awe.  I honestly didn't realize that we were so abnormal.

[Jockey]

This topic came up at work a few weeks ago and I mentioned how I have never paid interest on a credit card.  The two guys first looked at dumbfounded then it was like they were in awe.  I honestly didn't realize that we were so abnormal.

I love the people who make a big deal about finding something on sale  - then charge it and pay minimum payment every month. Then they still talk about the great deal that they got.