Who is at this point saying 'Fuck it' to the credit card bills

[Hawkeye-X]

with their usurpy rates?

I'm getting close. We're still working on trying to transfer our balance to a 0% interest for life so we don't pay the interest over interest over interest.

Say 'bye' to Chase, WaMu, Bank of America, and gawd knows what else..

*grumble*

[villager]

1. I'm gonna go on a "debt management" program

to get these thieves paid off, then advise my children to never, ever use them....

We should embark on a generational project to drive all credit card companies out of business....

[regnaD kciN]

6. The best way to carry out this "generational project"...

We should embark on a generational project to drive all credit card companies out of business....

...would be by getting enough progressives elected to overturn this outrageous bankruptcy bill and enact consumer-friendly legislation regarding credit policies.

A good place to start would be with the principle that you pay the interest rate that was in place when you made the purchase. Banks would not be able to say "O.K., you bought this while your APR was 5.99%, but, now we're going to make you pay off the remaining balance of it at 19.99%." They could raise the interest rates if they wanted, but only on purchases made after the fact.

And it wouldn't hurt to revive the concept of usury, either, and put an upper cap on the rate anyone could charge. The current situation is not only bank-friendly, it practically allows them to behave in ways more befitting the Mob and its loan sharks.

[GOTV]

44. I think that should absolutely be the law. Bravo!

[IdaBriggs]

90. Genius!!! nt

[Lydia Leftcoast]

123. Interest rates first hit 20% during the "stagflation" era of the late 1970s and

early 1980s, reflecting the rise in the Federal Reserve's interest rates.

However, they never came down.

At that time, I saw a New Yorker cartoon in which two convicts were in a cell. One of them was saying, "I'm in here for charging 15% interest."

Yes, folks, charging excessive interest used to be a CRIME.

[TransitJohn]

34. I've heard that

entering those programs puts a severe hit on your credit rating with the bureaus....but I've not been able to verify it through my googling.

[Wcross]

52. I've heard it knocks your credit just like a BK. n/t

[rox63]

83. It's not as bad as having a bankruptcy on your record

I've been through a debt management program with CCCS. It was several years ago, and I decided afterwards to have only one major credit card. So I just have a Visa through my credit union. It just makes it a lot easier to do things like make purchases over the internets, buy plane tickets, rent a car, make a hotel reservation, etc. And by going through my credit union, I get a reasonable interest rate, and it's not going to a some huge corporation's profit margin. Even though I've been through a DMP, I was able to get my first mortgage a couple of years ago, and my credit score is looking pretty good now.

[villager]

143. Thanks!

i'm at least a couple years away from buying a house, anyway, so I figure this is a good time to hammer away at the plastic debt...

[tbyg52]

193. Yep, credit unions are your best bet

I have *no* idea why anyone elegible for a credit union would deal with a commercial bank.

[4_TN_TITANS]

115. Not my experience...

Me and the wife did that and our credit rating shot right back up because you make one payment to the consolidation company and they electronically pay your debts on time every time. Things might have changed since then, but it was a good decision. I don't how we would have gotten out from under the debt without their help.

[kerry-is-my-prez]

160. There might be good debt mgmt companies and some bad....

n/t

[Oilwellian]

86. It affects your credit til you pay them off

We've had to go that route...a few years ago, we co-signed a loan for my son to get a car, he was late on the payments 3 times and voila! all of our credit card companies jacked the interest rate up to an unGodly amount. We have one year to go and we're debt free. Never again will we play the jackals game.

[katamaran]

110. It affects your rating a little, but the benefits outweigh the drop

I went though InCharge for my debt management. Four years to pay off $22,000 in stupid credit cards (I was very dumb in college). I think I maybe took a 50 point hit over the course of the five years. As I entered my last year, my credit score began to climb a couple points a month. When I finished, one month later, I went back up the 50 points I'd lost, and gained another 50 over the course of the next six months. Now my credit is pretty close to spotless. The drawback is that you are told NOT take on any other debts while under the program, so I couldn't buy a car, house, or apply for other credit during that time. So I have no long-term credit history now, which is going to be a pain when my boyfriend and I apply for a home loan in a few months.

[youthere]

195. We worked our butts off to pay off our cc debt...

and we made darn sure to go through every statement with our kids to make sure they understood how it worked..how that $25 pair of shoes we thought we HAD to have ended up costing us over $300.

[Selatius]

2. It's not easy, but if you can pay off your balance, do so entirely

Don't just pay the minimum amount due. Instead, pay above and beyond that each month however much is possible. This gives them less opportunity to make money off of you by charging interest because the amount owed decreases at a faster rate than would be if you simply paid the minimum amount due. I've had to sacrifice my standard of living to get out from my credit card, and I've learned to accept a loss of comfort in my life, a lower standard of living in exchange for avoiding insolvency.

[CTyankee]

130. Yep, live below your means. That is my mindset.

I have more money now than earlier in my life, even tho I am retired. I guess I learned to be thrifty and never got out of the habit. Plus, I have a great financial advisor who tells me never to live right up to the limit of your income. Having a new car just for show doesn't interest me. I will get a new car when the one I'm driving isn't worth the annual cost of maintenance. I learned that one from Consumer Reports.

[Seabiscuit]

194. If you never want to pay credit card interest, just follow this poster's advice.

Live below you means. Never buy something you can't afford on that day.

You can still purchase with a credit card. You won't ever be charged any interest if you timely pay each monthly credit card bill in full.

[fortyfeetunder]

3. down to three

and in two years hopefully none with a balance.

[rwheeler31]

4. We paid it all off ( even the house) 3 years ago ,

What a relief.

[regnaD kciN]

7. All those who may feel like bragging...

...about how they don't have any credit card debt anymore: Congratulations, but also pray that you never get hit with a medical emergency where the choice is between saving your credit rating or your parent's, spouse's, or child's life.

[seriousstan]

12. Yes, never let a good story go unpunished.

[regnaD kciN]

26. Not a matter of letting anything "go unpunished"...

I'm just pointing out to everyone that even spending reasonably and avoiding voluntary debt may not be enough. And that will remain the case until the laws are changed to more humanely offer those who find themselves in over their head, even (especially) for reasons that were beyond their control, a way out without losing everything.

[goodgd_yall]

29. I'm with you, regnaD

:applause:

[rwheeler31]

13. No debt , and earning income, a problem?

[AndyTiedye]

15. If It Comes To That, Better if You Have Your Whole Credit Line Available

You have just given another reason not to run up the credit cards unless you have to.
You want to have that available for such an emergency.

[goodgd_yall]

25. Yep, I have to say

that's what wiped me out. I declared bankruptcy right in the nick of time. Six months later the law changed. If I didn't have family who lends me money (at no interest) for big outlays like car repairs, I would HAVE to get another credit card. But I hope if I do need one in the future, the progressives you speak of have greatly restricted the practices of credit card companies.

[CTyankee]

131. Of course, there are extraordinary circumstances, but that doesn't mean you shouldn't aim

at carrying no CC debt in other circumstances. I have a friend who is separated and he paid the health insurance and now she is not covered. I urged her to find a plan immediately. She said she was just taking "one day at a time." I worry about her if she lands in the hospital with a serious condition...

[rucky]

189. nobody should ever have to make a choice like that.

universal single-payer not for profit healthcare NOW!

[ThomWV]

32. We did exactly the same thing at about the same time

For us it was about two and a half years ago. We cut up all but one card and then went looking for a better deal on the one card we kept. A local Credit Union had a much better deal with a card so now we keep it just for any unexpected needs that might show up.

Get rid of that debt people, no matter what it takes, no matter how hard it may seem, just get rid of it.

[Virginia Dare]

62. Yep, that's about the only finger you can stick in the dike right now..n/t

[Xenotime]

37. You are missing out...

on tax breaks and hurting your credit by paying everything off. Good luck trying to get a car.

[Liberal In Texas]

38. Tax breaks? I've never heard of any tax breaks from having CC debt. n/t

[ThomWV]

56. It was a deduction up until around the mid 90's. No shit, you could deduct CC interest paid.

Those were the days.

[GOTV]

46. I've paid the full balance every month for decades. Never had trouble buying a car. n/t

[Balbus]

49. I'm guessing you're not a CPA.

[Dora]

58. Is that old myth still floating around? Don't believe yourself. n/t

[CTyankee]

126. I never pay interest rates except on my mortgage. My credit is sterling and since

I've been paying full balance always on my CCs I have bought, on credit, 3 cars, 2 new and 1 used.

As for tax breaks, the only one you get is on your home mortgage.

[Lydia Leftcoast]

127. You must be in a time warp: the deduction on consumer interest was phased

out between 1986 and about 1992.

Even the mortgage interest deduction is a crock: You're paying the bank $1 for each 30 cents you get in tax relief.

[sendero]

185. I will never cease to be amazed..

... at the total bullshit people will delude themselves into in order to justify stupid financial management!

[NickB79]

179. I got my first credit card in college, circa 1998

I had a Discover Card, and then got a Visa a year later. I paid off my balance in full every month, and never racked up more than I could handle. Fast forward to 2005, and I go in to purchase my first new car. The sales lady actually tells me she's amazed how good my credit is for someone my age (25 at the time) and gives me the lowest interest rate they have.

[qanda]

73. Congratulations

That must be a wonderful relief.

[rucky]

188. ...

:yourock:

[orleans]

5. i haven't used them in a couple months. i'm fucking sick of paying out of

my ass for this shit.

fuck that. i'm gonna try to just pay them off and SCREW THEM!

[On the Road]

8. I'm Paying $20,000 Off Tomorrow

which will bring it down to zero. In 2005 I bought a couple of investment houses and put the down payment on cards. It worked out OK (just sold one for a small profit), but it's really nice to be able to retire all that credit.

[nadinbrzezinski]

9. We use them

but we are deadbeats... let me explain

We pay our balance OFF every month.

The new computer we bought, we used the credit card due to its extended service guarantee, but we had the money in the bank

Guess what they got next day?

Yep, a check for the total in full

And that habit, I owe it to my father

[Hieronymus]

16. That's the only way to go ..

[Sherman A1]

21. Agreed

I worked my way out of cc debt from a bad marriage, putting step daughter through college and life's overhead, but now use them for everything (gas, groceries, eating out, etc) every month. Then off goes one online payment. Build up some hefty cash back amounts which I can then use for gift cards for the holidays for nieces and nephews along with a few for myself along the way. It took time, patience and willpower, but we did it and now we enjoy using their money each month. Always buy my electronics with the 0% deals at Best Buy in order to use their money as opposed to mine.

:freak:

[regnaD kciN]

27. Hopefully, your card(s) won't institute special monthly charges for those with zero balance...

Yes, as outrageous as it may seem, some cards will penalize cardholders who don't roll over a balance every month. As you say, banks consider such people "deadbeats" who are inconsiderately not paying interest on current balances -- so they make cardholders pay for paying off their debt every month. :eyes:

[goodgd_yall]

28. Yes, I've heard of this trend

There are no laws stopping the credit card industry from making money any way it wants.

[Tesha]

30. Credit unions seem to like us, though.

> As you say, banks consider such people "deadbeats" who are
> inconsiderately not paying interest on current balances --
> so they make cardholders pay for paying off their debt
> every month

Credit unions seem to like us, though. ;)

Of course we, the customers of the credit union, *OWN*
the credit union so the situation is different than
with a conventional bank.

Support your local credit union!

Tesha

[GOTV]

47. That's a card I'll cancel. If they all to that. I'll find other ways around it, or carry $1.00 n/t

[Gormy Cuss]

84. That's the beauty of having a good credit rating -- one can always find a better deal.

Charging for zero balances is just another way the industry puts the screws to people who don't have much choice.

[nadinbrzezinski]

88. The card, and i mean THE card

would get cancelled so fast it will make their head spin

[wryter2000]

146. They haven't done that to me...yet

As soon as one of them tries it, they'll get cancelled.

Providian was double-cycling, thereby putting an interest charge on my balance even though I paid it off every month. I told them to take that and shove it.

I have a good mortgage and don't need another one. I drive an old heap car, and if it dies, I'll buy another old heap from its owner. The only things I need a cc for are making reservations, car rental, and internet purchases.

[OPERATIONMINDCRIME]

156. But That's All Disclosed In The Agreement. It's Pretty Easy To Avoid Such Cards.

[JerseygirlCT]

54. We're the same nt

[Contrary1]

74. We are considered deadbeats here also...

We started charging everything, when a local food chain offered a credit card that "rewarded" us with gift cards every four months to spend in their store. We don't fly or vacation much, so this was ideal.

We pay the balance off every month, and end up getting about $400. back a year in groceries.

[OPERATIONMINDCRIME]

155. Yup. That's The Exact Way To Be.

I do the same thing. I put 15,000 on it for my new car and had it paid off by the next day. I buy EVERYTHING I can on the card instead of with cash, for sake of earning points, protections and securities that cash can't get ya. Then I make sure I pay it off in full so that it's all rewards and no penalty. To me, a credit card is a tool, not a cop-out. If someone makes sure they only charge what they can afford, then there really aren't any problems.

[REACTIVATED IN CT]

184. I put the kid's college tuition on it

Paid the bill in full when it came - I had been putting $ aside since he was born for his college education. I racked up a lot of points during those 4 years

[Webster Green]

10. I've never had a credit card, and don't plan to ever get one.

I'm 60, and I've made it this far without one.

[mrcheerful]

11. I gor rid of mine back in the 90's and haven't missed them one bit.

To bad america is so slow to wake up and realize that instant credit on a card means instant broke and years of staying broke paying the darn things off. So my credit history took a hit and my credit score is just above 0, like I was buying a house or new car any time soon.

[GOTV]

51. How do you buy stuff online?

[Wcross]

53. You can use a debit card online. n/t

[GOTV]

57. Oh I see. But there are different issues there....

... because they have direct access to YOUR money. It someone screws up a decimal point you could be out a lot of cash until it gets straightened out.

[Wcross]

63. You could set up separate accounts.

One for online transactions, one for regular banking. My bank (regions bank) doesn't charge anything for a checking account.

[kineneb]

76. Pre-paid debit cards

the fees are reasonable, and you can control how much money you maintain in them. They are all I use.

[Wcross]

89. Thats another good idea. n/t

[GOTV]

94. Who offers them?

[MissB]

121. You can get one at Wells Fargo

Or at least I have. :) I think they cost about $2-$3 to load.

[kineneb]

180. chain stores, groceries

I got mine at RiteAid (ok, I know they aren't great, but the only other place to buy stuff is MallWart).

Safeway caries them, too.

[mrcheerful]

137. I don't buy "stuff" on line. If its something I need I go out to the store

an shop. Same with "stuff" I want, besides the fact that when I buy something I want to take it home after paying for it. I also don't shop through catalogs nor do I use UPS or Fed Ex. The cycle shop I dealt with back in my home city would order a rare part for my vintage cycle, call me up when the part got to the shop and I'd pay the shop and take the part home. Only way I'll do business with stores, shops cash and carry or they don't get my business. Btw, that also applies to large items, I find ways to have a vehicle large enough to carry a sofa or bed or refrig, guess what? I have never lost anything during shipping nor do I have to pay for shipping insurance or handling fee's.

[Virginia Dare]

141. I do quite a bit at Christmas time..

simply because I hate to go out shopping at that time of year. The retailers usually are offering free shipping and other incentives around that time too, they did last year anyway.

[mrcheerful]

147. I don't believe in Christmas shopping. The people I buy for, My SO and the kid

I get that after Christmas during the after holiday sales. I usually get them a cheap gift and a card that says more to come later.

[CRF450]

170. Plus if theirs some electronic device you want that stores dont have

Might as well buy it from the net at a highly rated website. You'd save a good bit of money too, because some places like Best Buy sell their stuff at the retail price set from the manufacturer, when you can get what you want from the net for almost half the price!

Where I live anyways, theirs hardly a good retial electronic store, the internet is the best place to shop for those type of things!

[kineneb]

181. nice, if you have any stores nearby

but out here in the country, it is easier to order online, rather than drive at least 1 hr to the closest town with anything beyond MallWart or Kfart. There are only boutique clothing stores and thrift shops around here, not a single regular place to buy clothing or shoes. I buy what I can locally, but there is not much here.

[AndyTiedye]

14. Pay Them In Full Each Month

If you never take out a cash advance, and pay your bill in full each month,
there is no service charge (If your card doesn't work that way, get another).

I try to pay small businesses in cash, since they tend to get clobbered on
credit card fees, but I figure the big retailers and big credit card companies
mostly deserve each other. The travel industry practically insists on credit
cards over any other form of payment — try renting a car without one!
Paying for a hotel room with cash will require an extra deposit if you want the
phone to work, and paying for airline tickets in cash is likely to get you extra
attention from the TSA.

[Hardrada]

20. My case too.

I need a business card or two but do try to pay them off monthly. No using any others.

[eridani]

17. Pay every month before the deadline, even though that inspires the userers to--

--call you a 'deadbeat'. S'true! If you're behind, pay 'em off as fast as you can.

[SoCalDem]

18. be careful. if you need to, file for bankruptcy. if you are deep in debt, you

still may be able to.. here in Riverside county, MOST of the people who are filing are VERY eligible.. The scare tactic they put out along with the new laws made it seem as if more people would NOt be able to,. The mandatoy credit 'classes" are waived if you cannot get any benefit in them. There was an article a while back that said some of the BK attorneys were spending the mandatory 45 minute session, just shooting the breeze, since it was apparent 3 minutes into the session that the clients were going to have to file..

[RebelOne]

35. I just filed a Chapter 13 a few months ago.

I wasn't eligible for a Chapter 7 because I earn too much money. But I was in debt over my head. So, I had to file a Chapter 13 and my creditors through the court each month. And the mandatory credit class is a piece of cake. You can do online in an hour and a half.

[Adsos Letter]

19. I have to agree with some of the others on here...

...if at all possible pay off the full amount each month.

At one point I had almost $13,000 in credit card debt...we scraped and went without to pay it off. Now we do without rather than allow a balance to carry over. :shrug:

[Blue_Tires]

22. oh...i am ALL OVER that idea!

me and a lot of my friends got the same sad story to tell...

[goodgd_yall]

23. Levin and McCaskill legislation Stop the Unfair Credit Card Practices Act

(or something like that) might help you if it gets passed (it's now in committee). Hey, I know what you mean: interest hike, late fee, oops now you're overlimit so you're charged an overlimit fee, interest on the fees; oh and you were late on paying your gas card bill, so you'll find your VISA interest APR just went up to 28%.

Unless the bankruptcy law goes back to what it was, you'll probably die in debt. After the bankruptcy law was changed, there went the last incentive for credit card companies to control their interest rates and fees. Before, they wouldn't really want to drive someone to bankruptcy because then they'd never get their money. Now there are no limits; they are out of control.

[goodgd_yall]

24. If and when you do get rid of the debt

Definitely say "Fuck it" to the credit cards. I'd only go back to having one if there were some tight regulations placed on the credit card industry.

[B Calm]

31. My dad raised me saying, if you can't afford it, you don't need it!

He was right!

[Bluerthanblue]

72. mine did too- and he lived it, but

he never would have believed that would have to also apply to an emergency room bill of $4,162.00.
My Dad was a child of the depression, and taught me well.

Use it up, wear it out, make it do or do without is not only good sense, it brings personal satisfaction, and a sense of empowerment. The earth benefits as well.

Doing without emergency medical treatment at the expense of life isn't something he would have applauded though.

pretty wierd world this is eh?

peace,
blu

[Lydia Leftcoast]

129. Yes, I was debt-free for a while, and then I needed emergency car repairs

(I wouldn't have a car at all if I didn't have to chauffeur my mother on occasion) and several rounds of emergency dental work. All of these were more than I could pay off.

I'm climbing back out.

[Commie Pinko Dirtbag]

81. It's nice to be above the poverty line, innit? -nt

[Bill McBlueState]

105. so if you can't afford shoes for your kid,

then your kid doesn't need shoes?

Huh, that never occurred to me. :eyes:

[Wcross]

128. If you can't afford 12 bucks for shoes....

You probably wouldn't qualify for a credit card. It also occurs to me that if you can't afford to put shoes on your kid you have bigger problems that have nothing to do with debt management.

[Bill McBlueState]

183. yep

I bet a lot of Americans have those problems. The wealth disparity in this country is appalling.

[B Calm]

150. If you can't afford a pair of damn shoes and have to charge them

on a damn credit card, then you are a fool!

[Bill McBlueState]

182. nobody said anything about charging shoes on a credit card

You said you advocated the position, "if you can't afford it, you don't need it."

I tried to point out that some people can't afford things they actually do need. That's actually the definition of poverty. Several million Americans live in poverty.

But from your tone, you sound like you don't really care about that.

Sorry for bothering you.

[OzarkDem]

33. College loans are worse

I just realized the loans my hubby took out for older son's college education are a rip off. We've been making payments for 3 years now and not one cent has been applied to principal.

[Liberal In Texas]

36. What a timely post. We just paid off all the cards this morning, and now have 0 credit card debt.

We still have a mortgage and a car payment, but the plan now is to only buy things when there is enough money in the bank to cover it, and pay before any interest can be applied.

[Squatch]

39. What "usurpy" rates?

I'm paying 9.9% on my credit card, which I find very reasonable. Then again, I protect my credit jealously and enjoy a very high credit rating. Oh, and it's a Bank of America card, too.

[roamer65]

59. Same here and since inflation...

is around 10.5 percent, any money borrowed at less than the inflation rate is basically being destroyed. I have a couple of cards at the 20+ percent rate, but I never use them. I only keep them to increase the amount of credit available to me.

[Blue_In_AK]

157. I hope it stays that way for you.

Chase raised my husband's MasterCard from 9.9% fixed to 15.9% variable, and he's never missed or had a late payment ever and never gone over limit. He had and used the card for 15 years.

[jazzjunkysue]

40. I never run a balance. They don't make a penny off me. n/t.

[TechBear_Seattle]

41. Alas, no credit cards means no credit rating

And if you do not have an excellent credit rating, you can kiss off your chances of ever buying a car or a home.

It is a very nasty catch 22, with the consumer being screwed a dozen ways both coming and going.

[Liberal In Texas]

45. I think the idea is to get to a position where you have some credit cards, use them sparingly, and

don't run up the debt. You almost have to have a card to rent a car. If I travel, it is so much easier to use the card, and when the bill comes in, pay the thing off. Self-discipline is the key here.

And I do understand that, unfortunately, many people end up running up debt due to divorce, medical problems, or loss of a job. It's so hard once you get behind the 8-ball to climb out of the hole you get in.

On the other hand, many people buy houses they can barely afford, go on spending sprees for furniture, and buy new cars they don't really need. Way too many people are living on a razors edge where they can get knocked off with the slightest unexpected rainy day.

[TechBear_Seattle]

48. Having credit, and not using it, lowers your credit score

Part of the formula which generates your credit score involves total amount of available credit and how often you use it. I believe the "sweet spot" is to carry a balance of about 25% to 30% of your total available credit. If you carry a higher balance, you are seen as taking on too much debt, and your score is lowered. If you carry a lower balance, you are seen as not a sufficiently profitable consumer, and your score is lowered.

Like I said, it is a catch 22: you are damned if you do and damned if you don't.

[roamer65]

50. I run in that sweet spot and it repaired my credit real fast.

For those who have bad or damaged credit, it doesn't hurt to run a small balance on a lower interest rate card. Making the payments on time, repairs your credit within a couple of years. The key is to use the credit responsibly, and not let it get out of control.

[Gormy Cuss]

93. Not using the credit doesn't automatically lower the score.

I know in earlier FICO modeling it did but I believe that it's been corrected so that it's only a factor in a few cases, probably for those who have limited credit histories. Hard to say for sure because the model is proprietary.

In its description of how their model works, Fair,Isaac states:

In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than carrying no balance at all.

http://www.fico.org/ScoreBreakDown/AmountsOwed.aspx

Note the language: "some cases" and "may be slightly better." That admits carrying no balance is not considered a negative factor for everyone. Many "no balance" people I know have credit scores over 800.

[Wcross]

55. Not necessarily.

I bought a new vehicle in 2003 with NO credit history. I paid 4.4% APR by using my insurance companies bank and being a long time customer. I only had to put down 1000.00 in cash.
Many mortgage lenders do manual underwriting for home loans. It can be done.

[scarletwoman]

168. That's simply not true. I've bought 3 houses and several cars over the past 30

years and have NEVER had a credit card.

"They" WANT you to believe that it's not possible, but it's a LIE!

Repeat: It is a LIE.

sw

[Cetacea]

42. Apparently very few understood your OP

The responses here remind me of the "how do people living at the poverty level manage to eat" threads where as most of the responses are from people who brag about how they eat organically from their gardens that surround their four bedroom homes in the 'burbs.

[goodgd_yall]

65. Indeed

And then feel like you're a schmuck because it's assumed you're an idiot around money if you have a balance on your credit card. Not enough people holding the credit card companies responsible for their shark-like tactics.

[Contrary1]

80. No one should feel like a "schmuck"...

Everyone has different circumstances. What pisses me off the most about CC companies is how they prey on college kids, away from home for the first time.

"Congratulations on your achievement! But, no matter how responsible you are with your money, an emergency may arise. We're here to help, blah, blah, blah..."

Even after we warned them, both of my kids got into financial trouble this way. They make it so easy. What's $10. for a pizza or a movie now and then?

Anyway, my son ended up taking on two jobs and cutting his class load to make ends meet. He spent an extra year in college because of it, but I think he learned a valuable lesson...or at least I hope he did.

[GOTV]

97. Most people I know who are in CC trouble are not schmucks but neither did suffer some emergency

They just slowly spent themselves into trouble, like the proverbial frog in the boiling water.

Hell, I know someone who bought a used car on a CC. Nice guy. But he felt he needed a car.

[goodgd_yall]

113. The point is

the credit card companies are doing more than covering their losses. No matter how you got to a large balance on your credit card(s), no one should be subject to the uncontrolled fees and increased percentage rates that the credit card companies now feel free to apply.

[Occulus]

67. Yeah... there's always a high level of SMUG on these CC/debt threads n/t

[GOTV]

106. I think it's viewed a little like smoking

There are differenced of course. CCs don't kill you and actually have some beneficial uses.

But, on the other hand, we've known about the dangers of both for a long time. And although both the tobacco and credit industries have been shameless in the advertising and lobbying efforts the victims of both industries are volunteers to some degree.

[Wcross]

82. Somebody misunderstood.

The OP is stating that having an outstanding credit card balance is not the ideal way to live. The OP is working to rid themselves of the debt. I saw nothing more than that in the post.

[Cetacea]

98. Smugness is not what the subject was addressing.

And at the time of this writing the author has not responded to the thread that has developed.
I haven't seen more than a few posts here that address the subject line of the OP, which to me is inquiring at which point does one reach the breaking point and just refuse to pay off the debt.
The subject is about desperation, not how this person and that just wrote a check of 25k to balance out his/her credit card debt.

Just my 2 cents.

[Wcross]

102. The OP is NOT refusing to pay off debt.

Quote from the op "I'm getting close. We're still working on trying to transfer our balance to a 0% interest for life so we don't pay the interest over interest over interest"

In no way did the OP infer they are refusing to pay off the debt. They are saying "fuck the cards" by paying them off.

[Hawkeye-X]

151. I'm not refusing to pay off the debt.

It's just ridiculous that we have to pay the interest on top of the balance.. And it'll never go down as long as there is high interest. That's how the greedy CC issuers make their money.

[Wcross]

169. I was just disputing what Artiechoke posted.

From what I gathered in your original post you have decided to pay them off and be rid of the thieves. I never doubted your intentions but others did.

BTW- When shopping for 0% cards be SURE you know all the fees. I am talking from experience, I got hit with a 75 dollar transfer fee with one transfer. Oh, I did get a "free" magazine subscription with it though!

I applaud your decision to get these people out of your life. You know what they do when you pay it off? They will send you letters saying how they would like you to remain a customer and to help you do this they will enclose three "convenience" checks. You can use them for anything your heart desires, it is wonderful!
Just remember, the borrower is slave to the lender

[GOTV]

43. I said it decades ago and I've paid off my balance every month since....

... there's very few excuses for carrying debt at those rates.

[Virginia Dare]

60. Me too, the only debt I carry is a mortgage, and even that's about to change..

get out of debt now, people!!!

[GOTV]

108. I don't know what to do about the mortgage but rest is gone

I was just out of college when I started getting CC offers all over the place. I started buying everything on credit. I had nothing since I was just starting out so I felt I was justified. Also, I assumed my income would be high and rising so it would be no problem paying it off.

I was right about my income but it still didn't keep up with my debt. After a few years I started to notice what I was giving up in order to make the rather large minimum payments. I realized that paying off my cards would be like receiving a substantial raise.

At that point I made a rule. Instead of paying the minimum balance, I paid the minimum plus whatever I charged that month. It set me up with a good habit and in a couple of years, all the debt was gone.

I use credit cards all the time now, as does my GF, but every time I do, consider what my bank balance is and we both pay off the balance. Don't even LOOK at the minimum payment box.

[CTyankee]

133. It also helps to develop a budget and put down everything you buy.

I have a budget line for monthly household bills (phone, electricity,etc.)which my husband and I split evenly. I have a monthly budget for food and other stuff from the supermarket, a budget for a vacation, clothing, etc. I recently totally retired and was looking to save a certain amount of money. I decided that since I wasn't working I didn't need to color my hair (to make me look better, or at least younger). When I added up how much THAT costs, I had saved $900 a year!

When you find truly unnecessary items in your budget because of a lifestyle change or you just have to, you become sensible, I think.

[Virginia Dare]

61. Our consumer debt will eventually destroy us..

the best thing anybody can do for themselves financially right now is to get out from under their consumer debt if they can.

[supernova]

64. Got rid of my credit cards

about 8 years ago. I have a visa check card now and that's all I use. My brokerage firm settles my account on the 20th of every month and I don't carry debt. That makes me happy. It's a good thing too because I've been laid off twice now and have been able to weather those times without racking up additional charges.

I am very annoyed when sales staff at stores try to get me to sign up for a credit cards. It happens ALL THE TIME! :argh: It makes shopping more of an annoyance than a pleasure.

[CTyankee]

134. I occasionally DO take their credit card but only if I get something in return.

A clothing store I shop in, for instance. If I am going to buy their merchandise, why not get a 15% discount for using their card (again you have to pay it all off when the bill comes in). I also do the "no interest until next year" thing, but pay it off month by month, and in total by the due date, and I still do not pay interest fees but I get the benefit of spreading out my payment. I realize that is risky and the stores wouldn't offer it if everybody did what I do. But that is one system you can game, if you don't go crazy.

[Wcross]

171. I bought my big screen TV that way- 0% for a year.

I paid it off in 9 months and cancelled their card. I cut the card up the day it arrived, no problems.

[CTyankee]

177. Hey, I did the same thing with our new TV!

Also, I got the smallest big screen TV and only after we had such an ordeal with our TV set -- it had a glitch somewhere so there were certain channels where we got SAP only on audio but got the video ok. We haven't paid it off yet but it is working well for both my husband and me.

The only worry with doing this is if you have a big, unexpected cost that breaks your budget. Thank God we have great health care because I was hospitalized with some awful abdominal surgeries, but my husband, employed by city hall and with union membership (AFSME)had the best health care possible! I only pay into it at $74 a month (I declined Medicare part B and D because this one is so great). I can see how health care can hurt even the most careful budget. It's a problem!

[Cleita]

66. I've been upset for some time with the near carte blanche

credit card companies have to commit every crime of usury in the books legally, yet they are a necessary evil. We need to bring back the laws that kept interest under 18% maximum compounded annually. Back then only pawn shops and other companies who dealt in high risk loans could charge the full 18%. Most loans were in the 6% range compounded annually and at the most 10% with collateral.

Also, there are many other laws that have been dumped overboard that protected both borrower and lender. It's time to get our legislatures back to working on this problem.

[goodgd_yall]

68. There is legislation in the works

Here is a link that gives some more information:

http://www.senate.gov/~levin/newsroom/release.cfm?id=274257

[Cleita]

95. Thank God! It's about time.

Even if they rolled back the laws to the early sixties, when I got my first credit card, it would be good. Back then, first the companies couldn't give you a credit limit that was beyond your income to pay. Mine was $500. My interest was 7% compounded annually, not daily. It was higher than the average car loan or mortgage of that day because it was riskier, but it wasn't the usury charged today to even those with good credit ratings and low risk. My minimum payment was set according to my balance, but it was a reasonable payment that enabled me to pull out of debt much more easily than today. However, something will be better than nothing because this industry has become totally deregulated and out of control.

[CrispyQ]

149. I have a card that offers a credit limit that is $5000 less than what I make in a year.

Granted, the credit limit grew to that amount when I was making twice what I make now, but wtf? Shouldn't the card company have some responsibility too? Shouldn't they review my status every few years instead of assuming that everything is hunky-dory just because I've been making payments?

[goodgd_yall]

161. Credit card companies love to offer credit limits beyond reasonable

I used to (before my bankruptcy) get unsolicited offers to increase my credit limit. I knew it wouldn't be wise, so I never did, but they're counting on you putting more and more on the card and hope you don't pay off your balance each month.

[AwakeAtLast]

69. I am credit card free after many years of hard work

Paid off two simple interest loans that were taken out to pay them off. Working on my student loans now.

Cut 'em up! Say goodbye! You will have so much cash left over you won't know where to put it! (Mine goes into savings, BTW)

:hi:

[Scriptor Ignotus]

70. I'm saying fuck it to ever using credit cards again

that's for sure. I got jammed up on them for about 8 years. Never again.

[ToeBot]

71. Vote Biden!!

:sarcasm:

[kineneb]

75. Ch. 7: no more credit cards, ever.

...can't afford them on Hubby's SSDI. Pre-paid debit cards are my friend... much safer for online purchases.

[brystheguy]

77. No one has mentioned Dave Ramsey yet?

He's a guy on the radio that believes in being debt-free. He's a pretty good listen. His financial advice is pretty good, although he does say that it comes from passages in the bible. That can be annoying but I've learned to tune that out. He'll be on one of your more conservative talk radio stations, maybe even a religious one. Just find out what time he is on and only listen during that time and then change the station quickly when he is over!!

[Wcross]

87. I listen to his show when I can.

Yes he is a fundy. He also tends to brag a bit about his own wealth. Other than that it is an interesting show. I don't feel as bad about my situation when I hear some of his callers. I feel sorry for most of them being so far in the hole they can't see daylight.

[supernova]

104. Clark Howard is good to

He's out of Atlanta and he is very good about money strategies, including being debt free and finding the best deals for things so that you don't get ripped off to start with.

[Lorien]

124. He's got a podcast on iTunes too

he's a major conservative and bible thumper, but I agree with him when it comes to his views on debt. Trying to dig myself out of $32,000 worth of medical debt right now. Glad I cut up the credit cards ten years ago!

[Wcross]

78. I am working to become debt free.

Credit cards are way too tempting for me. I have been scrimping and saving for years now to pay off the house, the auto loan and the one credit card with a balance (it got up to 5000 bucks at one point).
I have less than six months to go! Unfortunately I may be forced to go back into debt next month. The property next door is going up for sale, if I don't buy it I may have neighbors which I don't want.

[Catherine Vincent]

79. What's in your wallet?

I received a notice a couple of days ago from Capital One informing of their revised fees:

Overlimit - $39

Missed payment - $39

I don't remember the rest. No wonder they ask what's in your wallet.

[Wcross]

85. What about the "universal default rate"

A buddy of mine did some stupid things and got 20 thousand dollars in the hole with the card companies. He only makes 30k a year at his job. He thought he could play the "0%" card shopping game and he did for a while. The card companies then started jacking his rates to the universal default rate (29%) because he had too much debt. He is hurting right now trying to pay it off.

[Tracer]

136. To jog your memory re Capital One ...

... they also raised the interest rate from 9.9% to 15.9%.

[Akoto]

91. At 22, I only have one credit card, and ...

I tend to use it only for purchases I can already pay for. That way, I build some good credit without having to worry so much about the interest. Granted, I don't have any kids to feed (nor do I plan to) or extraordinary medical issues to pay for. Folks in that situation often and understandably can't help but make use of CCs.

[smoogatz]

92. We've been debit only for about two years now.

We keep a single credit card only for travel emergencies, and always pay off the balance every month (usually the balance is zero). The transition was tough--we had to pay down about $10k in debt in five big chunks, but it's a great relief to be out from under the usurers' thumb. Now our only debt is the mortgage; we're working on paying that down, too.

[OwnedByFerrets]

96. Some of you talk as though

most of us have a choice. Sadly, myself included, most of americans dont. Its all we can do to pay a little over minimum every month. With no pay raises and the job market for my skill very slim, we have few choices. And paying off the credit card is NOT one of them.

[Cetacea]

99. Thank you for addressing the OP.

You are in the minority. I don't think the author needs Credit Counseling.

[Hawkeye-X]

152. Funny thing about credit counseling - I *want* to get in it

But the wife refuses to sacrifice her credit cards, and thinks it's coming down, when CC's are up.

We're calling and cancelling a few so we don't add anything to it.

[Wcross]

100. I am sure there are plenty of people in your situation.

I understand your predicament. Until three years ago I was stuck in a job like you describe, maybe one raise every three years. I was lucky to move on and get a large raise but maintained my level of spending at the old pay rate. That's the only way I could start paying it off. If I stayed at the old job I would be making the minimums or worse, getting deeper in the hole.

[CTyankee]

135. Do you have a good idea of how much you are spending and on what?

If there is any "give" in some items in your spending you can take that and put it to your credit card debt. I do this all of the time, since I retired and am on a fixed income. Some things I got used to spending money on just wasn't that important when I really looked at it. When I first made a budget was when I really knew how much was going out versus how much was going in!

Good luck. I hope you find a way out...:hi:

[Recursion]

101. I lucked out (sort of) by messing up my credit early

When I got deployed to Kosavo I forgot to Soldiers & Sailors Relief Act my only credit card and it went into default. Thanks to that (and honestly I'm glad it happened), I can only get a credit card with a $1500 credit line now. It's been useful for a couple of emergencies, but it's never going to be enough debt to bury me. A couple of times they've offered to raise the limit and I've refused. I compare that with my more creditworthy friends who are now up to their necks in debt and contemplating bankruptcy, and I think I really lucked out, honestly.

[Yavin4]

103. Build Up Your Credit Rating?! BALONEY!!!

Look, most of us here are working class people, which means that we are dependent on jobs in order to survive. People like us should not be worrying about building up credit. Instead, we should be worrying about being solvent and financially self sufficient.

If we want to buy a car, buy it used and pay it off. If we want to buy a house, save and invest the money to make a substantial down payment. That's what our parents' generation did. Credit is the new drug that makes the working class docile because it allows us to buy crap that we cannot afford, and then we feel shame when we cannot pay it off. It also allows prices to skyrocket out of control, see the housing market.

Don't use credit to buy anything unless it's for house, and even then be extremely careful when you do. Learn to save and invest your money wisely. Fuck credit. You don't need it.

[spooked]

112. Best post !

Thanks...you are SO Right!!

[Virginia Dare]

118. We've sold our souls to the banking and mortgage industries..

they handed out credit cards to us like candy, starting as soon as we graduated high school. We are horribly and dysfunctionally addicted to them.

Many if not most people under the age of 50 have no financial discipline whatever. If we want something, we just go out and get it, who cares if we don't have the cash, we'll just put it on the credit card and worry about it next month. Well, before too long, a lot of us are going to be stuck with a bunch of material items that aren't worth a nickle anymore and huge amounts of consumer debt that have come due, with no way to pay for it. It's a very scary thing to contemplate.

[mrcheerful]

138. Only if your over 50 is it scary. Most of those under 50 always believe that it won't happen to them

We thought the same way in our youth, well some of us did. I remember hidding under the kitchen table when bill collectors came around when dad was off work during a strike. You know since then I have never had bill collectors bother me. But then I pay cash even if it means I have to wait and save up the money to get what I want. But then again theres never been this need in me to have something that I couldn't wait for either. If said item is no longer there, then I find something else that I'd like to have. Case in point, a 1937 Triumph motorcycle, wanted it real bad, it was sold the day before I finshed saving up the cash for it. So I bought a 1063 Triumph that I enjoyed working on and riding.

[goodgd_yall]

119. Good for bad government

You wrote:

"That's what our parents' generation did. Credit is the new drug that makes the working class docile because it allows us to buy crap that we cannot afford, and then we feel shame when we cannot pay it off. It also allows prices to skyrocket out of control, see the housing market."

Not only allows us to buy crap that allows us to escape, but gets us so in a bind financially that it's harder to keep up on what's going on politically, or to be politically active. Energy goes into just making ends meet. Yes, and shame too, definitely. (Most of the threads are of that ilk, more shaming than helpful, IMO.) As far as prices go, buying on credit has allowed prices in everything to skyrocket. Companies wouldn't be able to ask the prices they do if everyone had to pay out of pocket.

[Yavin4]

132. Then, We Wonder Why People Don't Protest

Or why people don't form unions or get active politically. It's because they can buy whatever they want on credit, and then feel shame when they get into a bind. Larding us up with debt is what makes us politically docile.

Many people here say that they need credit cards for health care emergencies. Think about that statement. People in other industrialized nations around the world have health emergencies as well. Guess what they do about it. They pressure their govt to have universal health insurance.

[Lorien]

125. Amen n/t

[Duppers]

148. true that!

:thumbsup:

[Wcross]

107. I cringe when I hear people say the "payed off" debt w/heloc.

I have heard people say they have paid off their credit cards by either refinancing or using a Home equity line of credit. They didn't pay off squat. All they did was transfer the debt to another debt. In effect they have moved that Starbucks coffee purchase to a 30 year payoff, suddenly that 4 dollar cup of coffee costs 12 dollars with the added interest.

[GOTV]

109. It's usually a lower interest rate and tax deductable

It's not as good as paying the debt off, but it's better than leaving it on a credit card.

Of course, I've known people to transfer their starbucks coffee off their credit cards only to head right back to starbucks and charge more.

[supernova]

111. Yes!

Home equity lines to pay off debt is not the way to go! You'll still owe! x(

[SoCalDem]

140. Yep that also bugs me.. and MANY people just run up new charges

The only way to do it is to cut up the cards and never open a new account.

When we paid off ours a few years ago (not using the house) we kept only ONE..and only use it for buying my husband's meds from our "robot pharmacy" and for things I buy online.

All the others are gone gone gone..and we don't miss them at all..

My friend's equity in their house was all eaten away by re-fi & pay off CC cycles over a few year's timeframe.

This is why so many people just walk away.. If your credit is already shit, there's no equity left, and you cannot make the payments, why not just walk away?

[Yavin4]

187. And, They Put Their Home In Jeopardy

It's extremely difficult for credit card companies to seize your house if you default. Some states won't even let them do it. However, they will seize your home if you default on the mortgage.

[ceile]

114. Me! Me!

It's pay the cc bills or student loans. For some reason I'm more afraid of my state's Attorney General than Capital One.

[LittleClarkie]

116. Just paid off my car, consolidated the three cards into one, and am now paying about 400 a month

on the one card so see if I can get it to go down.

The finance charges on one of the cards I thought I'd paid off bit me in the butt, but aside from that, I think it's going okay.

[XOKCowboy]

117. I have to have a credit card for business...

so I'm down to one finally. It's also paid off and I'm going to make sure I don't carry over any balances from month to month.

Have you noticed how hard it is to cancel a credit card? Oh boy the CS people sure try to talk you out of it. It came to a point with one Chase CS rep that I ended up getting rude and telling the guy "Just cancel the fucking account PLEASE!" They train those people well...

[goodgd_yall]

120. Cancelling credit cards---snail mail is best

I've always written them when cancelling because, if I called, I knew my time would be wasted listening to someone trying to convince me not to cancel.

[trekbiker]

122. I'm a lender with Prosper.com

probably 80%+ of the borrowers are consolidating credit card debt. The terms of a Prosper loan are 3 year fixed at an interest rate determined by the "auction" whereby lenders bid on the loan (sort of like Ebay). If you have clean credit there is a good chance of obtaining a Prosper loan. This P2P (person to person) internet lending model is still new and time will tell whether it will survive in its present form. From my experience as a lender it seems to be a better deal for the borrowers than the lenders. The loans are all unsecured debt and the borrower default rates so far have been above industry averages.

For those of you looking to consolidate credit card debt Prosper can be a good deal. 5-10% below your credit card interest rate and a fixed 3 year term to pay it off. Just dont charge your credit cards back up after paying them off with a Prosper loan. Also, cut your credit cards up but DONT close the accounts. Closing the accounts knocks your credit rating scores down.

[Banned_Wagon]

142. 39 Years old here...

and I have never used a Credit Card in my life. I have used Debit ATM cards on my own money, but never borrowed money in my life. Cash is the only way. If you don't have enough cash to buy the things you WANT after buying the things you NEED, then suffer. All this borrowing is further bringing this country into a debt Nation! EVERYONE is the problem, and EVERYONE is the solution.

[NNN0LHI]

162. Have you ever tried to book a hotel room or an airline ticket, or reserve a rental car with cash?

I don't think doing these things are possible without a credit card? I may be wrong?

Don

[B Calm]

164. I believe you can do it with a debit card

[NNN0LHI]

176. That hasn't been quite nailed down according to this

http://www.bnm.com/joe.htm

Using a debit card: The scoop on whether you can use a debit card is still fuzzy and not clear cut. The policy is still "location dependent" so it's hard to nail down. Alamo accepts debit cards with the Visa or Mastercard logo and a Round trip travel ticket, but restricts certain locations. Dollar requires an acceptable credit check with debit cards. At a few limited locations, Thrifty and some local Enterprise offices may accept debit cards. These policies may change at any time. There are a few small independents that allow cash deposits. With the use of a debt card, the agency may require a credit check.

[Banned_Wagon]

165. Debit card or Prepaid Mastercard

All you need bro. :)

[Hawkeye-X]

158. I'm looking into it.

I'll transfer a few there to help pay it down. Does it issue billing every month like other CC's do?

[trekbiker]

178. Yes, Prosper bills monthly

Basically Prosper is a loan packager for the lenders. Lenders bid a minimum of $50 for loans that interest them. For instance a typical borrower would submit a loan request for, say, $6000 and pitch his need with a story, budget statement, income information etc. Lenders view the request as well as the financial history of the borrower and if they like what they see can bid on it. The bidding period is 9 days and if the loan fully funds, Prosper cuts a check to the borrower for $6K and immediately debits the lenders accounts to fill the loan. The maximum amount that a borrower can request is $25,000. A given loan can easily have over a 100 lenders who chipped in various amounts >$50. Most borrowers set it up so that Prosper automatically draws from the borrowers bank account each month.

the advantage to borrowers is that the lenders often bid the loans down to a percentage rate that is lower than what the borrowers credit grade warrents, good for the borrowers but sucks for the lenders for the risk involved. Also, since the loan is amortized over three years the borrowers arent stuck paying minimum payments like on a CC and never getting anywhere in digging out of debt. That said, there's nothing to stop the borrowers from piling up more CC debt and defaulting on the Prosper loan. Many have.

[roguevalley]

139. I just did. Last one paid in full. :) Its heavenly. I wish it for everyone else too.

[wryter2000]

144. Pretty much already there

I have a largish balance on one of my card, but I'm making more than minimum payments. When a few things settle down, I'll get rid of that.

In general, I go to my credit card websites every week or two and pay off the entire amount so I don't pay those blood suckers interest. A pox on them.

[malaise]

145. Tear up all credit cards

Leave the banks and head to the Credit Union. I only need credit cards for book/DVD orders anyway and my sibblings keep me supplied with endless B&N gift certificates.

[OPERATIONMINDCRIME]

153. They Don't Bother Me At All. I Only Charge What I Can AFFORD And Pay It Off Each Month.

That way, the fees are completely irrelevant to me, and I get to earn points to get further discounts than if I just used cash.

[Blue_In_AK]

154. My husband just cancelled his Chase MasterCard

after they raised his interest rate from 9.9% fixed to 15.9% variable for no reason whatsoever.

[KAT119]

159. Great!

[kerry-is-my-prez]

163. Worked w/a guy who stopped paying most of them off - said it would be off his credit report in 7 yrs

He said that it wouldn't show up on his credit reports after that and that he would be able to slowly build his credit back up. Since I haven't seen him in years I don't know if he was full of it or not.

He did have a couple of newer cards that he WAS making payments on.

He kept on advising me to do the same thing but I've just been paying them off a little bit at a time.

[CRF450]

166. I have two debts I'm paying off so far

A $220,000 house and a $15,000 Dakota truck (half way paid off). Best thing to do when you finance something is PAY IT OFF FAST! I have credit cards but I hardly even use them. I use the bank card anytime I buy something from the net, or buy gas.

Credit card companies will try things to fuck you over for more money. Stay within your spending limits, dont fall behind on payments and your good.

[scarletwoman]

167. I don't have to say "bye" because I never said "hello".

I'm 57 years old, and I've never had a credit card. I've bought cars, land and houses, I've birthed and raised two children, moved cross country several times, taken out many loans, booked airplane tickets and hotel rooms online -- all without ever having a credit card. My current house and 10 acres will be completely paid off in April, 2008.

I have a debit card with a $300 line of credit through my local member-owned credit union. In the 5 years I've had it, only once did I max out the line of credit when I couldn't pay it back within a few days, and had to make monthly payments for a while.

If I really want something, I save for it until I have enough money to buy it outright. I saved for a year in order to be able to buy my computer with cash. Instead of making credit card payments, I regularily put money into my savings account so that I'll have funds available in case of some kind of financial emergency. I earn interest instead of paying interest.

Frankly, I see the use of credit cards as being little more than acquiescing to corporate servitude. I wish more people would cast off their chains and say "fuck you" to credit cards. Why would anyone willingly feed the corporate financial beast that's destroying us?

Make an act of rebellion that really counts! Stop feeding the beast!

sw

[lonestarnot]

172. Someone at yahoo must have read your post.

http://www.yahoo.com/s/646185

[Kazak]

173. 0% for life? Where do you hook that up?

Anyway, we haven't carried a credit balance for more than five years and we're working on eliminating the REST of our debt entirely (car, house, student loans...).

[tammywammy]

174. I don't have any credit cards

My only debt is my house and car. If I can't pay cash then I don't need it. And I don't make a whole lot of money either, I made around $25,000 last year. I do have an emergency card, but that's emergency only card.

[Wcross]

175. Why don't we teach basic finance in high school?

I would love to see at least one year of finance classes taught. This would be one you have to pass to graduate. Basic budgeting, the mathematics of compound interest, debt management and a term paper on the book "Extraordinary Popular Delusions and the Madness of Crowds".

http://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds

People do some silly shit when it comes to money. Using available credit as a component of their spendable income. Buying homes that are above what they can afford. Financing a cup of coffee at Starbucks by using the credit card.

I am not a heartless bastard though, I understand some are forced to do things by the circumstances. Things like medical bills, layoffs and other such catastrophe's. In our future we NEED universal health insurance. We need to up the unemployment benefits for people who lose their jobs. I bet if we had universal insurance wages would no longer stagnate, people would feel free to move from job to job.

[REACTIVATED IN CT]

186. I got off the credit card merry go round many years ago by

taking a loan from my retirement plan. My ex had run up the balance without my knowledge as he was in charge of paying the bills. He was making the minimum payment every month and the balance was not going down.

I took a loan and paid off the bills. The interest I paid on the loan went back into my account.
You also have opportunity costs - you lose the earnings that money would have made if it was still invested in your 401k

Its not the answer for everyone - but if it is an option available to you, I think it is worth looking into.

Oh yeah - I also canceled the credit card

[rucky]

190. hELL Yeah! I'm ripping up my next credit card bill!

Fuck 'em 1!111!

[sofa king]

191. It's sad....

I'm almost certainly the poorest person posting in this thread, making near-minimum wage part-time with no benefits, and yet I also have practically no debt at all at this point.

So from a technical standpoint, am I wealthier than some of you because I'm a hair on the right side of zero?

Probably not. My healthcare plan is simple: don't break a leg, or I might starve.

[EFerrari]

192. I've had no credit card debt for about ten years. It's a pain

sometimes but I don't miss the stress or the interest charges. Carrying no cc debt is a habit, just like brushing your teeth. :)

[Blue_Tires]

196. another kick

passed that point about 10 miles back