credit cards

I have gotten so in the habit of charging everything because we have one of those air mile credit cards. We pay it off every month, but I heard on tv this morning that it's the worse thing you can do.

We even charge our son's college tuition to rack up miles for him to fly back and forth for free. We've taken family vacations and had to pay no air fare. I think it's worth it.

However, the financial advisor on TV mentioned that you spend more when you charge. He believes you should use a debit card or cash. What do you think?

I have to agree about spending less when you fork over the cash. There has to be a way to spend less and charge. I like the free air milage too much. Thoughts?

I listen to a Clark Howard on the radio occasionally and he says the worst thing you can do is carry around a debit card because if it is stolen or lost, you could lose all your money in your checking and savings accounts. You are protected if you use a credit card. He says the best card to get is one that gives you a % of what you charge back at the end of the year. But if you have a card that you can actually get free miles that are redeemable (some are difficult to use) then I say go for it. Only you can know if you spend more and if you pay it off each month, good for you!

Daisygirl

Got rid of all but one major credit card years ago and then have a debit card too. If you pay cash for airfare you can really get some great deals but thats about all I have heard from flying friends.

Hmmm, never thought about a debit card being lost or stolen. Ouch. I don't have one. Well, I have one, but don't know a pin number. Duh... It's jsut as well. I know people who are forever taking money out with their debit cards. I don't want to get in that habit.

I use my Credit card only to buy online or by mail for things such as office supplies and the sort. And I don't buy if I don't already have the funds to pay the bill immediately.

I recently got one CC with no interest for a certain # of months, which I'm using for my CD production expenses. On this one, I'm paying the monthly minimum, as I get the funds in by selling the CDs. On this account I don't charge anything else.

But I do believe that for many, spending more is easier to do with a CC than with the actual cash in hand.

Except for my business, I'm not much of a shopper. I use credit cards because, depending on the card and the month, I've gotten airline miles, 5% cash back from certain types of purchases, and cash credit towards future merchandise. On the cash credit, I got a super nice bathroom scale from Sharper Image, Calphalon cookware, dvd rentals, 30 minutes per month free long distance phone calls, etc. Right now I'm trying to get airline miles because I want to fly to NYC in June for Mom's 80th.

I've never been in debt and think it's stupid to buy a lot of stuff if you can't really afford it. We pay off our credit cards every month. I'm a good money manager (and so is hubbo) so I really don't worry.

I use my Marriott credit card for everything. In order to avoid spending more, I enter each purchase in my check register. That way, I never exceed the balance in my check book and when the bill comes, all the money is sitting in my checking acount to pay the balance in full. We then can use the Marriott points for just about anything.

Lin,

That is such a great idea!

Danita

Lin, great idea.

Meredith, I agree. It is stupid to buy stuff you can't afford. I am so afraid for this younger generation. They are offered credit cards before they're 18. My kids (and one's only 17) get offers in the mail every week. I don't recall that from when we were kids.

We've become a plastic society.

Dotsie, my son just turned 18 and he's getting those offers like crazy !

I agree with Meredith. It's not wise to buy if I don't have the funds to pay immediately! That's why all I have is so simple. But I don't owe it !

If anyone ever really studied the inner workings of these banks they would run far and fast when offered these cards...this is the worst way for a kids to begin his/her life with credit card debt....emphasize that to them repeatedly and then practice what you preach. Unless however you don't overextend and your able to pay off the entire balance every month.

[ February 09, 2006, 08:33 PM: Message edited by: chatty lady ]

I use only one credit card and use it for everything. It gets paid off in full every month and has never carried a balance. We also opened a credit card for our son. He uses it for books and tuition and occasionally a meal or computer stuff.
My husband feels it's important to help our children become established with credit. Our 18 year old will be getting one soon.
Debit cards are risky for the exact reasons Daisygirl mentioned.

My oldest son started getting credit card offers from Capital One when he was 14 years old. I was livid and spent probably 6 months in the runaround at that company trying to get my sons name off their mailing list.

It wasn't a mistake, either... they were specifically targeting teens because if we had decided to apply, it would have need a parental co-signer on the application.

This makes me so mad. I called them one day and gave them my "thoughts."


Patty

Ladybug, our son away at college also has one. He sends me the receipts so I can be certain of the charges when the bill arrives.

He'll get the credit card when he graduates. Woohoo! Then he can pay the bill.

Next year I'll be doing this for two more kids. Egads.

Do you ladies charge tuitions? Instead of paying the college, we charge their tuition with our US Air credit card, then pay the bank at the end of the month. We really rack up the air miles. Then we fly free. Our son is 9-10 miles from home so the free air fare helps tremendously.

Patty, my 20 year-old received two credit card applications in the mail yesterday. I ripped them in half like I do with all the rest.

We did the same thing with our kids when they went away to college...opened a credit card to establish their credit...my son to this day...and he is now 29...thanks me for doing that for him..he had a very nice credit history 2 years ago when he went to apply for a mortgage for his first house...I still have one in college...and thanks to all of this computer technology I can check her account very easily...even everyday if it was necessary...same way with banking...it's so easy to just be able to jump online and put $20 in her account when she needs extra money for a prescription or the like...I love computer banking!!!!

Dotsie...we did the same thing as you with tuitions...paid them on our card and racked up lots of air miles...my husband even has me use the airline card to pay for groceries now...he thinks every dollar we spend might as well convert into air miles...sounds great to me...it's really a pretty nice incentive....of course we pay it off every month....he doesn't like carrying credit card balances....

Dotsie, because my credit card also has enticing "perks" we also pay college tuition on it. Like you, we pay it off in full every month when it comes due.