Comments on: How I Ended My Love Affair With the Credit Card (and Why I Use Cash) http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/ Simple Productivity Fri, 16 Oct 2009 00:14:22 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: Cat http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-75630 Cat Tue, 23 Jun 2009 20:11:26 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-75630 I like your balanced and open-minded approach in this post. I don't share your views on credit cards and online shopping - I save a ton of money (and time) by doing most of my shopping online, and prefer to pay by CC since it offers more protections than other methods. I also pay the balance in full each month, having developed a huge aversion to debt after foolishly getting into a lot of it when I was younger. But I do agree that a person who's prone to overspending or who might be tempted to run up a balance is best off avoiding credit cards, and I respect your reasons for doing so. It would be nice if more of the anti-credit card brigade took your type of non-dogmatic stance & recognised that a 'one size fits all' approach doesn't really work! I like your balanced and open-minded approach in this post.

I don’t share your views on credit cards and online shopping – I save a ton of money (and time) by doing most of my shopping online, and prefer to pay by CC since it offers more protections than other methods. I also pay the balance in full each month, having developed a huge aversion to debt after foolishly getting into a lot of it when I was younger.

But I do agree that a person who’s prone to overspending or who might be tempted to run up a balance is best off avoiding credit cards, and I respect your reasons for doing so. It would be nice if more of the anti-credit card brigade took your type of non-dogmatic stance & recognised that a ‘one size fits all’ approach doesn’t really work!

]]> By: Tara http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-72704 Tara Wed, 03 Jun 2009 07:13:05 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-72704 It was interesting to see how the posts advocating credit cards as "good for you" disappeared after the financial meltdown. I find the complex promotional offers that credit card companies push to be misleading to the point of fraud. I have advanced degrees in mathematics and I have had to push numbers through some pretty fancy manipulations to figure out what using a balance transfer would actually cost me. I can see how folks who don't have a high level of numeracy can get tricked with low promotional interest rates (for 6 months, but the balance transfer fee that is described in teeny tiny print will cost you more than the low interest will save). And mortgages- we've now seen where variable rates and balloon payments have gotten us. Schools should teach basic financial skills in math classes, rather than the old-fashioned algebra problems that 95% of the students will never use (Bob's age is 2 more than Julie's but twice Li's age, etc etc). I use elementary algebra to calculate things like APR for credit and loan terms, break-even times for transactions (should I take money from my retirement account and pay the 10% penalty in order to pay down my credit card balance) and so on. The inability of people to manage debt is a sign of the failure of our educational system to teach these skills as well as failure of parents to provide their children with the discipline to control their spending. It was interesting to see how the posts advocating credit cards as “good for you” disappeared after the financial meltdown.

I find the complex promotional offers that credit card companies push to be misleading to the point of fraud. I have advanced degrees in mathematics and I have had to push numbers through some pretty fancy manipulations to figure out what using a balance transfer would actually cost me. I can see how folks who don’t have a high level of numeracy can get tricked with low promotional interest rates (for 6 months, but the balance transfer fee that is described in teeny tiny print will cost you more than the low interest will save). And mortgages- we’ve now seen where variable rates and balloon payments have gotten us.

Schools should teach basic financial skills in math classes, rather than the old-fashioned algebra problems that 95% of the students will never use (Bob’s age is 2 more than Julie’s but twice Li’s age, etc etc). I use elementary algebra to calculate things like APR for credit and loan terms, break-even times for transactions (should I take money from my retirement account and pay the 10% penalty in order to pay down my credit card balance) and so on. The inability of people to manage debt is a sign of the failure of our educational system to teach these skills as well as failure of parents to provide their children with the discipline to control their spending.

]]> By: sarah http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-70867 sarah Tue, 19 May 2009 16:02:45 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-70867 excellent article! it made me realize that before i got credit cards i was VERY frugal. i hate seeing cash leave my hands, but sliding a card through a machine is different - so of course, now that i have them i am in debt. i'm going to put all of my cards, including debit, away for a while and only spend cash while i pay down my debt. excellent article! it made me realize that before i got credit cards i was VERY frugal. i hate seeing cash leave my hands, but sliding a card through a machine is different – so of course, now that i have them i am in debt. i’m going to put all of my cards, including debit, away for a while and only spend cash while i pay down my debt.

]]> By: My Get Things Done List » Blog Archive » Fiscal Fitness: Eliminate Debt with 10 Successful Diet Principles [zen habits] http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-68764 My Get Things Done List » Blog Archive » Fiscal Fitness: Eliminate Debt with 10 Successful Diet Principles [zen habits] Sun, 03 May 2009 04:08:33 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-68764 [...] How I Ended My Affair with the Credit Card [...] [...] How I Ended My Affair with the Credit Card [...]

]]> By: Financial Zen « gross domestic product, inc. http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-68721 Financial Zen « gross domestic product, inc. Sat, 02 May 2009 06:47:09 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-68721 [...] Get out of debt. This is often the first necessary step. But how do you do this? First, monitor your impulse spending urges to stop the bleeding. Use a debt snowball as a plan to get out of debt. Also see: How I save, How to stop living from paycheck-to-paycheck, and How I ended my affair with the credit card. [...] [...] Get out of debt. This is often the first necessary step. But how do you do this? First, monitor your impulse spending urges to stop the bleeding. Use a debt snowball as a plan to get out of debt. Also see: How I save, How to stop living from paycheck-to-paycheck, and How I ended my affair with the credit card. [...]

]]> By: My Get Things Done List » Blog Archive » 10 Lessons to Teach Your Kids About Money [zen habits] http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-67486 My Get Things Done List » Blog Archive » 10 Lessons to Teach Your Kids About Money [zen habits] Mon, 27 Apr 2009 04:23:18 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-67486 [...] How I Ended My Affair with the Credit Card [...] [...] How I Ended My Affair with the Credit Card [...]

]]> By: Cheapskate Guide: 50 Tips for Frugal Living - Make The Days Count http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-66144 Cheapskate Guide: 50 Tips for Frugal Living - Make The Days Count Tue, 14 Apr 2009 19:36:15 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-66144 [...] Stop using credit cards. Credit cards are not evil. And before you flame me, once again, I realize that they can be used to good purpose. If that’s how you use them, then that’s good, skip this tip. For others, credit cards make buying too easy, and end up making them buy too much.Not only that, but if you don’t pay your bill in full each month, they will cost you a lot in interest. The average American with at least 1 credit card has more than $8,500 in credit card debt. Don’t make that mistake. Here’s my story. [...] [...] Stop using credit cards. Credit cards are not evil. And before you flame me, once again, I realize that they can be used to good purpose. If that’s how you use them, then that’s good, skip this tip. For others, credit cards make buying too easy, and end up making them buy too much.Not only that, but if you don’t pay your bill in full each month, they will cost you a lot in interest. The average American with at least 1 credit card has more than $8,500 in credit card debt. Don’t make that mistake. Here’s my story. [...]

]]> By: Doug http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-64897 Doug Tue, 31 Mar 2009 14:50:04 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-64897 If you can't control impulsive spending and budget your money, then don't use credit cards. People that can't control their spending can get into trouble many different ways. Business is driven by profit and most the time that's all they think about. Believe it. Pawn shops, rent to own stores, and payday loan companies are taking advantage of many people that can't manage money. Big retailers also are looking to sell you things even though you don't have the money to buy them. They offer credit cards that give you a percentage off your purchase if you apply for them. Some offer layaway service. There is a lot of pressure put on Americans to spend. Marketing professionals work hard to find ways to make us spend money, whether we have it or not. We think that we have to live to a higher standard even though we can't afford it. Enough is enough. Wake up people! Live according to your means. Your expenses should not consistently exceed your income. Budget your money and if you use credit cards, pay them off every month. Don't waste money by paying interest on a credit cards. An interest payment adds no value to your life. You see no return for interest payments. If you can’t control impulsive spending and budget your money, then don’t use credit cards. People that can’t control their spending can get into trouble many different ways.

Business is driven by profit and most the time that’s all they think about. Believe it. Pawn shops, rent to own stores, and payday loan companies are taking advantage of many people that can’t manage money. Big retailers also are looking to sell you things even though you don’t have the money to buy them. They offer credit cards that give you a percentage off your purchase if you apply for them. Some offer layaway service.

There is a lot of pressure put on Americans to spend. Marketing professionals work hard to find ways to make us spend money, whether we have it or not. We think that we have to live to a higher standard even though we can’t afford it.

Enough is enough. Wake up people! Live according to your means. Your expenses should not consistently exceed your income. Budget your money and if you use credit cards, pay them off every month. Don’t waste money by paying interest on a credit cards. An interest payment adds no value to your life. You see no return for interest payments.

]]> By: Uncle Mark http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-59833 Uncle Mark Mon, 09 Feb 2009 02:51:47 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-59833 I found the article very on point. The bottom line is this - do what works for you. There are some very good ideas relating to this topic, however, what may work well for some may not be the answer for others. If one continues reading and educating him or herself with respect to the topic covered, I believe confidently that such persons will come to the conclusion that it is better to live without the plastic. Finally there are many well articulated points of view posted, just do what works for you. Just the opinion of one guy. Grace & Peace. I found the article very on point. The bottom line is this – do what works for you. There are some very good ideas relating to this topic, however, what may work well for some may not be the answer for others. If one continues reading and educating him or herself with respect to the topic covered, I believe confidently that such persons will come to the conclusion that it is better to live without the plastic. Finally there are many well articulated points of view posted, just do what works for you. Just the opinion of one guy. Grace & Peace.

]]> By: The Cheapskate Guide: 50 Tips for Frugal Living | Banwaan http://zenhabits.net/2007/02/how-i-ended-my-love-affair-with-credit/#comment-52052 The Cheapskate Guide: 50 Tips for Frugal Living | Banwaan Thu, 20 Nov 2008 04:06:25 +0000 http://zenhabits.net/2007/02/21/how-i-ended-my-love-affair-with-credit/#comment-52052 [...] Stop using credit cards. Credit cards are not evil. And before you flame me, once again, I realize that they can be used to good purpose. If that’s how you use them, then that’s good, skip this tip. For others, credit cards make buying too easy, and end up making them buy too much.Not only that, but if you don’t pay your bill in full each month, they will cost you a lot in interest. The average American with at least 1 credit card has more than $8,500 in credit card debt. Don’t make that mistake. Here’s my story. [...] [...] Stop using credit cards. Credit cards are not evil. And before you flame me, once again, I realize that they can be used to good purpose. If that’s how you use them, then that’s good, skip this tip. For others, credit cards make buying too easy, and end up making them buy too much.Not only that, but if you don’t pay your bill in full each month, they will cost you a lot in interest. The average American with at least 1 credit card has more than $8,500 in credit card debt. Don’t make that mistake. Here’s my story. [...]

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