Credit card debt

[kmarla]

$0. We pay off the balance in full every month.

 

[Nicolette]

$0

 

[Laila619]

Haven, congrats on baby #2 by the way!

 

[dk168]

My parents are the ones who instilled the no debt mantra in me.

I really hated it when I had to admit to my mum that she was right all along about the virtues of not having a credit card all her life, after clearing my non-priority debts last year in Feb 2015.

DK

 

[MissGotRocks]

We don't put anything on a credit card that we can't pay off at the end of every month. We have never had credit card debt and in the early years of our marriage, credit card interest was tax deductible. We still never did it. If you have to charge it and pay interest on it, you don't need it. Instead, bank your money for emergency expenditures and only buy what you have money to pay for.

My other pet peeve is shipping. I buy virtually nothing that I have to pay shipping for either because shipping rates based on the amount of your purchase rather than the true cost of shipping completely slays me. Companies make up lower pricing on outrageous shipping fees!

 

[marcy]

Zero but not zero.

I have good credit so on a major purchase I take advantage of those 48-month zero-interest offers.
Using OPM, other people's money, is good financial planning ... especially when it's free.

But read the fine print; if you miss a payment it's brutal.
The zero-interest party ends and it shoots up to, like, 29% APR ... and get this ... the 29% is retroactive back to the start of the loan even if you were on payment #47 of 48 and had a perfect payment record.

I'll bet those folks are pissed!!!!
But really, nobody held a gun to their heads.
They agreed to those terms.
Don't do this if you might miss a payment.

Defaulters might say I'm a jerk and am taking advantage of those who default.
But it wasn't my idea.

Kenny, I know most of the chain jewelry stores do that on their same as cash purchases. Some of them don't even ask for a minimum just a payment every month as long as you pay it off in the designated time. Definitely a rude awakening for someone who doesn't read the fine print.

 

[marcy]

We use one CC occasionally but pay it off right away. Sometimes I'll leave some balance on it for a month or two so it cycles through our credit but then I pay it off again.

We both had credit card debt when we got married then used if foolishly over the years. It took us a while to pay it all off but now if we can't afford it we aren't putting it on a credit card.

 

[wildcat03]

My fi and I have 0. We pay off our credit card bills every month in full.

I looked up the report Haven posted and my city does pretty poorly financially. Student loan debt to income is 112%. I have to wonder if this city's HUGE population of medical personnel - who generally have higher student debt but are fairly secure job-wise - plays a role in that.

 

[missy]

Like many of you we have zero credit card debt as we pay in full every month. We charge most of our purchases for a percentage back at the end of the year which really adds up. Haha reminds me of what my BIL loves to say...we are going broke saving money at... fill in the blank... but he was referring to Costco. Lol. Basically the more you spend the more you save yanno?

Seriously though I love using our credit cards because
1. It is an easy way to keep exact track of what you are spending where and when and
2. You save money because of a percentage back on most purchases with the credit card. Win win as long as you pay in full at the end of the cycle or make sure you don't incur any extra fees or charges if you don't pay it in full at the end of each cycle.

 

[NewEnglandLady]

We use our AMEX (we get cash back) for most purchases and pay it in full every month. I used to use cash for everything (I'm a big Dave Ramsey fan and followed his cash-only policy). For us, we don't spend any more using credit cards than we would using cash. And we always pay the balance, so really we only reap the benefits of using our card. I understand how credit cards can be dangerous, but I think if you use them right, you can use them to your advantage.

I still don't do store-based credit cards, we only have the one card, but I'm much more willing to use it now than I was even a couple of years ago.

 

[liaerfbv]

Currently sitting with 8,800 on a credit card opps forgot about another one...I put my laptop on a card 1 year interest free and it will be paid off long before the year is up.

I was starting to think I was the only one

We did a few of those no interest for 18 months and they always got paid before we accrued interest but our debt goes up and down on our main card depending on my husband's income. I hoping to have it down to $3,000 by years end, fingers crossed!

Don't feel bad, Stephanie. We don't have any credit card debt, but DH is carrying 6 figures of student loan debt. I'd trade you any day.

 

[YadaYadaYada]

Currently sitting with 8,800 on a credit card opps forgot about another one...I put my laptop on a card 1 year interest free and it will be paid off long before the year is up.

I was starting to think I was the only one

We did a few of those no interest for 18 months and they always got paid before we accrued interest but our debt goes up and down on our main card depending on my husband's income. I hoping to have it down to $3,000 by years end, fingers crossed!

Don't feel bad, Stephanie. We don't have any credit card debt, but DH is carrying 6 figures of student loan debt. I'd trade you any day.

Thanks for the kind words. If he has a large amount of student loan debt will it payoff in the long term because he is able to secure a higher paying job? That's usually the argument for a large amount of student loan debt, it takes money to get all those degrees and in the grand scheme of things you are better for it.

 

[inheritedring1234]

$0 in credit card debt.
Low 5 figures in student loan debt from grad school - which I could pay off now with cash on hand. But man its hard to give up a very, very low rate of 2.35% on those loans when I can do other things with my cash!

 

[liaerfbv]

Thanks for the kind words. If he has a large amount of student loan debt will it payoff in the long term because he is able to secure a higher paying job? That's usually the argument for a large amount of student loan debt, it takes money to get all those degrees and in the grand scheme of things you are better for it.

Yes, my DH is an attorney. Of course, I wish he had gone to a less expensive law school, but in the grand scheme of things it's the only debt we have, so I try not to worry about it because the interest rate is very very low. He loves what he does so I think the debt we took on was worth it.

 

[packrat]

I wish we didn't. But we do. We have tried, but we've been kicked in the teeth so many times-things breaking down, unexpected medical bills etc, we had no choice. Then we got it paid off and started to grow the business, so now we're back w/a hefty balance again. In the grand scheme of things, between our mortgage, the cc and my vehicle, I don't think we're doing too bad compared to some when they talk of debt, but I still don't like having it hang over our heads. We have a revolving loan type deal at the credit union where we can take out money any time we want and it comes out of our checking, and I've thought about using that to pay toward the cc balance-the revolving loan has a 5k max, but it's about 1/4 the interest rate that we pay on the card.

 

[december-fire]

I wish we didn't. But we do. We have tried, but we've been kicked in the teeth so many times-things breaking down, unexpected medical bills etc, we had no choice. Then we got it paid off and started to grow the business, so now we're back w/a hefty balance again. In the grand scheme of things, between our mortgage, the cc and my vehicle, I don't think we're doing too bad compared to some when they talk of debt, but I still don't like having it hang over our heads. We have a revolving loan type deal at the credit union where we can take out money any time we want and it comes out of our checking, and I've thought about using that to pay toward the cc balance-the revolving loan has a 5k max, but it's about 1/4 the interest rate that we pay on the card.

Packrat,

I hope you don't mind me commenting on your post.

Whenever possible, interest charges should be avoided or minimized.

Credit cards usually have very high interest rates, which make paying off an outstanding balance difficult and time-consuming. Money going to interest charges is not helping pay off the principal.

Its advisable to phone a credit card company and tell them you want a lower interest rate. Tell them you've been a loyal customer, are having trouble making payments due to other current financial demands, whatever.

A revolving loan or line of credit should be considered to pay off credit card debt. Loans and lines of credit usually have a much lower interest rate (as is the case in your situation), so more of your payment goes against the outstanding balance - resulting in a shorter time period to pay off the debt. Definitely, you should explore this option.

I'm not familiar with the U.S. tax system, but I assume you're aware of whatever tax deductions are applicable to loans that are for business purposes.

You want to ensure your business finances are separate from your personal finances.

And, finally, never underestimate the power of regular small amounts of money. Spending small amounts on a regular basis can result in a big problem. Similarly, you can see significant positive results by saving small amounts, increasing your debt payment by a small amount, or reducing your interest charges by even a small amount.

A person's financial situation can be impacted by their stage of life; raising a family, building a business, etc., is going to mean that finances can be tight. Don't get discouraged. Continue to pay attention to your financial situation; many people get into trouble by ignoring their finances.

I probably haven't told you anything you don't already know. But I had to respond and encourage you to look into reducing your interest charges. I love the topic of finance; the more you know, the more you can improve your situation and increase options available to you in life.

 

[december-fire]

$0

I use a credit card for everything and pay it off each month. Its a cash back card, so its like getting paid to use the card.

Previously, I used cash.
But as prices increased, it meant I was carrying a few hundred with me just to get groceries.
I wasn't comfortable carrying that much cash, so I starting using my debit card.
But the number of monthly transactions exceeded what was included in my basic banking package, and I wasn't about to change to a more expensive package that would cost me another $2 per month.
I like to spend my money on things that I need or enjoy.
I really don't like spending money on interest or service fees!
So I switched to using a cash back credit card and, as stated, pay it off each month.

Long story, but I never used a credit card before except to book hotels and planes.

 

[Tacori E-ring]

I use my discover card for points and pay it off each month.

I am not surprised that people get into CC debt. I am amazed how people manage with low income jobs. Life is so expensive and I think some people reply on their CC to make ends meet. I also know my fair of people who live above their means. A few co-workers always complain they are broke but eat out and shop all the time.

 

[Dancing Fire]

Zero!...

 

[Kelinas]

I use my discover card for points and pay it off each month.

I am not surprised that people get into CC debt.I am amazed how people manage with low income jobs. Life is so expensive and I think some people reply on their CC to make ends meet. I also know my fair of people who live above their means. A few co-workers always complain they are broke but eat out and shop all the time.

This.
I work 70 hours a week and I still find it hard to get by.
I was doing fine until I amassed a big debt when my mother got ill & passed away. Between hospital bills, funeral costs, and 5 international flight tickets, along with still having my personal bills to pay - I don't quite know how I would have made it without my credit cards.
It's a slow, painful process to paying off all the debt I have on the CC's but I'm getting there.

 

[stracci2000]

$0

I have a credit card, but don't use it.

 

[december-fire]

I use my discover card for points and pay it off each month.

I am not surprised that people get into CC debt.I am amazed how people manage with low income jobs. Life is so expensive and I think some people reply on their CC to make ends meet. I also know my fair of people who live above their means. A few co-workers always complain they are broke but eat out and shop all the time.

This.
I work 70 hours a week and I still find it hard to get by.
I was doing fine until I amassed a big debt when my mother got ill & passed away. Between hospital bills, funeral costs, and 5 international flight tickets, along with still having my personal bills to pay - I don't quite know how I would have made it without my credit cards.
It's a slow, painful process to paying off all the debt I have on the CC's but I'm getting there.

Kelinas,

I'm so sorry to hear about your mother.

There are so many different reasons why a person may have debt. Life can be so unpredictable and expensive. Some people might put themselves into financial difficulty by repeatedly choosing 'wants' that are beyond their financial means. But others, like yourself and probably many others here, have had to respond to life situations that required a large financial expense. And, as Tacori E-ring mentioned, people with low income jobs have to struggle just to make ends meet.

I hope you've examined the interest rates on your credit card debt and considered whether there are options that might save you some money. I don't mean to sound preachy or arrogant, and you didn't ask for advice, but I know it can be very difficult to find time to step back and look at options when you're working long hours.

Sending hugs and hoping that an unexpected windfall allows you to pay off your debt sooner than expected.

 

[MarionC]

I have two cards because I need a back up when I travel, but try to use the one that gives travel miles. I charge literally everything and pay the card off each month. I think cards are dangerous. I would probably spend less if it were not so easy to use a card online and for "shopping" adventures.

 

[Tekate]

We have zero balance. We use our cards for everything. Our AMEX is like most, from Costco, we use it for gasoline and a few other things, but we will soon be changing over to the Costco VISA. We have a VISA that we get miles on and we use that for just about everything. Back in the day, when one could deduct interest from a CC I always carried a balance of about 500.00$ (back in the 80s). But once that changed, I changed. It's possible you can take a cheaper loan from say a Credit Union (at a lower interest rate) and pay off the CC debt and set up payments that are easier to handle. I have been in debt when I was young (college loans, cars, mortgages) and I know that feeling of ugh.. sending you good vibes on the quest to pay off the debt,. I am sure you will.

 

[Lisa Loves Shiny]

$10K. I was told a few years back when buying another house that my debt ratio was very low. I have enough in savings to pay it off but I have a very low interest rate CC so I haven't. I think I just like having cash in the bank for an emergency which isn't savvy but I am OK with it right now.

 

[swingirl]

I pay our CCs off every month. But I don't mind carrying a balance on a big purchase like an appliance or furniture. I am okay with paying that off over 2 to 3 months. I have a low-interest CC so the interest is a small price to pay for the convenience of not having to withdraw money out of an investment account.

When I worked in retail it always amazed me how many people would pay the minimum on their credit card, just enough to be able to charge something, then turn around and make a purchase. (clothes, shoes, handbags, etc)

 

[WICheez]

I use credit cards exclusively for the cash back and travel rewards. Haven't made a cash purchase in 6 months. I treat them like they were debit cards and pay off in full each week.