I'm trying to track down a study by Dunn & Bradstreet that found that the average person spends 12% to 15% more when using a credit card rather than cash. Does anyone have a link to this? When my wife and I stopped using our credit cards (except for online purchases), we really started to save lots of money. It hurts to lay a $100 bill on the counter as opposed to flipping that credit card down. We figured that we were above "average", but we fell into the trap just as easily. I see lots of folks on this board pumping money through credit cards just to make 1% back. Seems rather odd looking back... Really, how many people flip $100 bills on to the counter? Anyone? --galabar p.s. Hey, all you 1% cash back folks -- your kicking the credit card companies a$$!!! LOL
SORRY...DON'T USE CASH!!! TOO EXPENSIVE!!! ON THE OTHER HAND...I HAVE DONE $5,000+ IN ONE DAY ON PLASTIC... RESTAURANTS HAVE SEEN THE PROOF YOU WANT...(but I don't know about an exact percentage more with credit cards)
I have PERSONAL EXPERIENCE with CASH vs CREDIT... My TACO BELL does not take credit cards...SO THEY GET MAYBE $20.00/YEAR FROM ME!!! "IF" they took credit cards...I MIGHT SPEND $5.00-50.00/ MONTH AT TACO BELL...
That's why I suggest card reduction and shopping smarter. I get excited and apply for credit only to find that it wasn't really necessary. Then, I cancel the accounts after a few months. I have a few core cards that I've used for years. But the newer accounts almost always meet their fate by shredder. Since I began tracking what I spend with software, I now limit how much cash or credit is in my wallet. I've reduced my spending and parlayed the difference toward my mortgage. I also shop for better deals. I buy items from eBay rather than department stores. A quick example: I paid $39 for a Farberware cooking set that costs $79 in the local store. CardKid
I couldn't agree more. I'm down to 1 Citibank MC and 1 Discover. I don't even carry them around with me. My wife does, but she hasn't fully jumped on the "no credit cards" bandwagon (however, we both love the idea, and reality, of 0 debt).
It's the opposite for me. $ bills just seem to vaporize from my wallet (I thought there was a twenty in there somewhere.) I can keep track of what was spent with a cc though. It's easy for me to set a spending cap of $x and know exactly where I am with it. Besides, paying all my groceries with a cc essentially gets me a free trip to the store every year. Putting phone, cable, water, auto insurance... on cc gets me cash coupons for Home Depot or other stores I'd shop at anyway. Heck, I even charge my CRRR's at the Post Office. Only if there is a cash discount does it pay for me to use cash. 0
If you're very conscious of your spending patterns, using credit cards is smarter. And several cards is smarter still. I'll tell you why. BUT, you need to pretend you're spending cash and laying down that $100 bill so you don't buy what you don't need. Then DON't lay down the $100 bill. Get at least two cards. I have them with closing dates about 15 days apart. Use the card that will bill the furtherest in the future. For example, today is the 16th. I have a card with a billing cycle that closes on the 12th. So I'm going to use it now, since I won't be billed until the 12th of August, almost a month from now. After my next card bills on the 28th, I'll start to use it because it has the billing date furtherest away. Now, I have to take all the money I spent (remember I said to pretend you're spending cash). Put the money in a bank account that draws interest. Use that to pay the bill online a day or two before it's due. You've gotten the interest for the six weeks or so between when you made the purchase and when you paid for it. I think that's GEORGE's point when he said it costs money to pay cash. I just got 45 days of interest on money I already spent, and I didn't pay a penny in interest to do it.
And by paying cash, you miss out on using rewards cards. In particular, the no annual fees rewards cards have no downside if you treat each purchase as cash.
You can always pay the bill BEFORE it even come in the MAIL!!! IF YOU MUST!!! MANY CARDS EVEN HAVE "FUTURE" PAYMENT DATES...DAYS IN ADVANCE...MONTHS IN ADVANCE...EVEN 364 DAYS OUT!!! You can set up in advance to pay the bill on PAY DAY...
MY POINT ABOUT CASH BEING TOO EXPENSIVE...is because you have to waste gas AND TIME going to the bank 4 or 5 times a month...OR YOU HAVE TO CARRY A "WAD" OF CASH... We have DIRECT DEPOSIT...I PAY (MOST) OF THE CREDIT CARD BILLS ON-LINE...NO STAMPS...NO GAS OR TIME WASTED GOING TO THE POST OFFICE...OR BANK NO MILEAGE WITH CASH WITH CASH NO IDINE (UP 20 MILES/$1.00 CHARGED TO A CREDIT CARD) NO 0.00% OFFERS WITH CASH WITH CASH YOU LOSE IT...IT CAN'T BE REPLACED CASH ONLY~~F.I.C.O. SCORE 500 MAX???
