Credit Cards Abuse

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Credit Cards Abuse

I lost my credit card and decided not to pick another one for a period of two months. I disciplined my self and bought goods and services on cash terms. After two months, I looked at how much money I had spend and realized that it was 30% less than what I had spend in the previous months using a credit card. Is it true that a credit card makes us spend on items that we really don't need? What is your view ?

I think we have the tendency to get stuff we don't need because we don't feel the "pinch" that paying in cash gives us. I have gotten rid of my credit cards and right now I am very careful in spending my money.

I think that a credit card can be a useful tool for emergencies, like when you've just started a new job, and it's two weeks until pay day and you need work shoes and food.
I don't think you should just pull out your credit card every time you see a cute outfit.
I pretend that I don't have a credit card most of the time. Credit should be a last resort, not a way to live above your means.

I would think that people do tend to spend more using credit than cash. They like the long term method and thus fool themselves into overspending.

Speaking only for myself, I discovered the same thing back when I had a credit card. It was too easy to fall into the "better buy it now, may not be on sale next month, I'll just make a higher payment on the next bill" mindset. Only I never made that extra payment. It can get out of hand fast.

Of course it's true Tobin. When you basically have an open wallet to spend with you will get in trouble. That's the problem with credit cards. They make it so easy to spend without thinking twice about it.

I think people should only use credit cards for emergencies and important purchases. So many times people get tempted to spend on luxury items and it lands them in deep trouble. Resist the urge and be responsible at all times!

You'll find that people who use straight forms of cash are going to spend between 3 - 13% less than consumers who use credit. That's simply because they stay within their means. 13% doesn't seem like much but do that over 5 years. All of a sudden you have people who make 5K a month and can't afford to spend less than 8k in bills.

Its a crazy thing. Math is kind of crazy in this fashion, but its how things work. I prefer to stick to cash when i can, but I'm still dealing with my own credit woohs as well. Life is life.

Credit Cards Abuse | ConsumerFu


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