Best financial advice I ever got: Treat credit cards like cash. Here's
how:Every time you make a purchase on your credit card, write it
down in your checkbook just as if you'd written a check. When you balance
your checkbook, that money will be deducted just like cash (even though in
reality the cash is still there). Then when your credit card bill comes, pay it
in full but record it as a zero-dollar check in your checkbook (since you
already deducted the money at the time you made the purchase).I have
used this successfully since I was 18 and I have never not made a full payment.
Now I charge everything (including utilities and mortgage), and by using a cash
back credit card, I usually make about $100 a month in cash back. Plus I only
have to write one check a month.
@AmPatriot;I disagree. I use my card for most purchases and pay the
balance in full each month. I pay no interest at all and get the use of their
money while mine accrues the teensy bit of interest that banks pay on it - but
it's better than nothing.I also have only one debt: my home;
and it'll be paid in full in just a few years.
I beg to differ, AmPatriot. In fact, I use my card for practically every
purchase I need to make, and then I cash in my points at the end of the year.
Unless I am mistaken, I actually make money off my credit card, or at least pay
less for items than you do by paying cash. I don't believe that by paying
cash, you can redeem any points at the end of the year, but correct me if I am
Patriot: Could you re-read and then repost the following sentence from your
post. I understand the point of your post but can't decifer the meaning of
this sentence: "Banks have surrenders to no interested fees for a more
lucrative use fee that is 5-10% of consumer goods." Is there some inference
that banks are somehow charging consumers 5 to 10% of the price of goods as a
It's good many are trying to pay off credit cards but are the willing to
stop using them? You can't have it both ways or they will never get out of
debt. It doesn't matter if they pay zero interest, debt and
interest have become irrelevant to each other, its all the other cost associated
with it and why consumer cost of living is at an all time high. Banks have
surrenders to no interested fees for a more lucrative use fee that is 5-10% of
consumer goods.The banks, news media, and government are hung up on
loan interest as relevant to debt when its not even a fraction of the cost for
debt people have. In the old days when interest was the only cost to borrow
money then it was relevant but fees are more profitable and not regulated like
interest is.To be debt free they must be card free cash & carry
When you owe credit card debt you throw money away each month paying interest
charges. With a little self control you can maintain a zero balance and spend
the money you'd otherwise be giving the bank.