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Just say no to credit cards!!!!

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neatfreak

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Date: 2/22/2009 10:12:16 AM
Author: steph72276
In my 10+ years of using a check card, I''ve only had 1 issue. I was at a hotel coffee shop and tipped the guy $2 for my coffee and it got entered in as $200. I check our account everyday, so as soon as I caught the error, I just made one phone call and it was put right back into our account (I believe it showed up the next day). They asked if I incurred any overdraft fees, which I didn''t, but they said they would remove those too if I had any. Also, here in Florida, when you pay at the pump, it asks you for your zip code. My hubby typed it in the wrong way one time, and we got a phone call from their fraud dept. to check and see if we had the card. So, I feel confidant about my bank taking care of things if something were to happen. Granted, it was only $200 and not thousands, but I feel pretty secure with my bank.

This situation is different than someone stealing your card though. I''ve had both happen (stole my card # somehow) and the mis-written tip was fixed right away. But it took almost 3 weeks to fix the debit issue from my bank account. I had to basically prove that I couldn''t have made the purchases which was a PITA.
 

steph72276

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There have been a few people on here that have said they love to use their credit card for all their purchases, etc. I'm pretty sure there's not going to be anyone on this board that will openly admit they are up to their eyeballs in credit card debt, but the statistics show this is how it is for most people. The average household has over 9K in credit card debt along with student loans, car payments, lines of credit, etc. The average household could also not survive for more than a month if they lost income.
The charge-off rate on credit cards are up 40% since last year alone. Chapter 7 bankruptcy rates were up almost 40% from last year. It's great that the few on here can use their cards responsibly, but the fact of the matter is that lots of Americans do not function this way. We have to learn to live on less than we make, or it will result in debt. Then when people lose their jobs, they have no emergency fund to survive on. That's when foreclosures and bankruptcies happen. If people would stop trying to keep up with the Jones, stop driving brand new cars every couple of years, stop building McMansions they can barely afford on current income, and start living under their means, they could actually save every month and then if disaster strikes, they could be prepared for it.

eta: Probably the people who are interested in this thread in the first place are already responsible with their money, so I don't really know if the message is going to anyone who needs it. I just wish people would realize that being in debt does NOT have to be a way of life!
 

Beacon

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I think you are right that people often have weak discipline when it comes to debt. But also remember, that an "average" figure does not describe each person. If on average people have 9K of credit card debt, it means perhaps that one person has none and another has 18K.

Also, that statistic might be misleading another way: for example I do pay all my credit cards to zero every month. I have never paid a finance charge in my life of credit card useage. But if you run my credit report right now, I will have some credit debt outstanding and that will be true all the time. This is because there is a balance that accumulates during the month and is repaid in full at the due date.

The result is that "statistically" I might be counted as someone with credit card debt whereas really it is not true as it will be paid each month. So it does depend how you got that statistic.
 

steph72276

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I hear what you''re saying Beacon and I''m glad most of us around here seem to be responsible with money. Perhaps this isn''t the correct forum for money discussions since some of our biggest decisions are half eternity or full eternity....it''s not like most of us here are deciding between food on the table or prescriptions, ya know? I just feel like if people had been more responsible with their money all along, we wouldn''t be in such a financial crisis. Hopefully through all of this, some people will learn to spend wisely and to live below their means from now on....
 

Haven

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Date: 2/22/2009 9:18:47 AM
Author: steph72276
I''m really surprised at all the people on here that pay everything using credit cards and then pay it off in full every month. Since so many people aren''t disciplined enough to do this and carry a balance, what is your secret to paying them off every month? Do you write everything down so you know how much of a check you will have to write at the end of the month? Do you do a monthly budget or just have a big surplus if you spend lots more that month? With my debit purchases, I go online everyday and then enter them into a money account so everything is balanced out everyday and I know what we have in our account. Do you do something similar?

I don''t really see why using a credit card instead of a debit card for purchases would require one to be any more disciplined as long as they live within their means. It''s not difficult to do this at all--we know what our monthly expenses are because we have the same bills to pay each month (mortgage, phone, etc.) and unless someone has a spending problem, or if they earn very close to what they spend each month, I have no idea how using a credit card and paying it off in full would be very difficult.

Either way, we end up spending the same amount of money whether we pay for it with our CC or with our debit card.

To answer your question, we pay for everything with our credit card, and then I go online and pay off the balance in full every two weeks the day after my paycheck gets automatically put into our checking account. We can check our credit card balance online whenever we want to, but it''s not like the number will every be a surprise, as we know how much we spend because WE are the ones spending it.

As for all of the people who are in debt up to their ears in this country, my guess is that a large amount of them are as you described--living in homes they can''t really afford, driving cars they can''t really afford, taking vacations they can''t really afford, etc. Those are all choices. I choose to live far within my means so I can have the freedom to save a lot of money each month, and spend some extra cash to do things I really want to do.

It isn''t brain surgery. Spend less than you earn. Pay your bills on time. Don''t buy something if you don''t have the money to pay for it.

(Of course, I realize that as a highly educated white woman I have been afforded many opportunities in my life that some people in this country never even had a shot at. I get that, and I''m grateful for it. And I realize that had my life''s circumstances been different, perhaps I wouldn''t be so fortunate to own our home and our cars and have a full year''s worth of an emergency fund at my disposal. Some people never got the breaks that I''ve gotten, and they will never have the earning potential that I have, or that my husband has. And that my participation on a diamond forum is a clear sign that I am privileged, and that perhaps I shouldn''t be so quick to say that saving money and living within one''s means is easy, because I''ve never known any other way.)
 

MichelleCarmen

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Date: 2/21/2009 7:39:33 PM
Author: steph72276

Date: 2/21/2009 6:42:18 PM
Author: MC
There is no way we could put cash down for a house, either. Not even a car! DH''s truck is paid off, but I still have payments on my car. . . just the way life is!
I agree with you that house payments are a way of life for most....but always having a car payment is a choice. I have never really been into driving ultra expensive cars, and our current vehicle is 7 years old and I''ll drive it at least until it''s 10 years old. We maintain it very well so it is very dependable. If you didn''t have a car note, it would be easier to save for college.
Steph - I''m the same way with cars. . .I''m not into expensive ones and my car isn''t newer. Unfortunely, I still have payments on it even though it''s getting up there in milage/years because DH and I decided to pay off his truck in a lump sum. I''d like to keep my car until it gets up to 200,000 miles! I just don''t want a newer car and have to worry about the doors getting dings in them or the interior not being prestine. (oh and even though having a payment is a choice, I''d rather have that obligation then an older less reliable car and have it break down on the side of the road.) Of course, that is because we can make the payment. There is always the bus if I had to.
 

MichelleCarmen

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Date: 2/22/2009 9:18:47 AM
Author: steph72276
I''m really surprised at all the people on here that pay everything using credit cards and then pay it off in full every month. Since so many people aren''t disciplined enough to do this and carry a balance, what is your secret to paying them off every month? Do you write everything down so you know how much of a check you will have to write at the end of the month? Do you do a monthly budget or just have a big surplus if you spend lots more that month? With my debit purchases, I go online everyday and then enter them into a money account so everything is balanced out everyday and I know what we have in our account. Do you do something similar?
I tried using my credit card for purchases and would tally up my receipts, but then I''d loose some of them and it was a pain. Now when I go shopping for clothes or fun stuff, I bring a specific cash amount and when that amount is gone, I''m done. I may take $200 to the mall and I can easily see where the money is going and will know when I hit my budget max.

I''ve read that people tend to spend more when they use their debit/credit cards because they do not equate their cards with money unlike how having actual cash in ones hand does.
 

packrat

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We carry a balance. I don''t like to, but we do. Sometimes it''s not a huge balance, sometimes we''re maxed out for months at a time. Granted, it''s only a $3000 limit, but to me, that''s a lot. We owe about 35k on the house and 10k on husbands truck. We''ve gotten kicked in the teeth several times since we''ve been married w/unexpected bills and each time it got harder and harder to bounce back. Together, we gross about 50k/year, and we have 2 kids. We''re not 100% frugal and smart w/our money all the time-we''ve cut back on eating out a lot, for instance.
 

steph72276

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Date: 2/22/2009 4:35:30 PM
Author: packrat
We carry a balance. I don''t like to, but we do. Sometimes it''s not a huge balance, sometimes we''re maxed out for months at a time. Granted, it''s only a $3000 limit, but to me, that''s a lot. We owe about 35k on the house and 10k on husbands truck. We''ve gotten kicked in the teeth several times since we''ve been married w/unexpected bills and each time it got harder and harder to bounce back. Together, we gross about 50k/year, and we have 2 kids. We''re not 100% frugal and smart w/our money all the time-we''ve cut back on eating out a lot, for instance.
Packrat, eating out was a huge money waste for us too. Just cutting back on this is a huge savings!
 

steph72276

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Date: 2/22/2009 3:13:46 PM
Author: MC
Date: 2/21/2009 7:39:33 PM

Author: steph72276


Date: 2/21/2009 6:42:18 PM

Author: MC

There is no way we could put cash down for a house, either. Not even a car! DH''s truck is paid off, but I still have payments on my car. . . just the way life is!

I agree with you that house payments are a way of life for most....but always having a car payment is a choice. I have never really been into driving ultra expensive cars, and our current vehicle is 7 years old and I''ll drive it at least until it''s 10 years old. We maintain it very well so it is very dependable. If you didn''t have a car note, it would be easier to save for college.
Steph - I''m the same way with cars. . .I''m not into expensive ones and my car isn''t newer. Unfortunely, I still have payments on it even though it''s getting up there in milage/years because DH and I decided to pay off his truck in a lump sum. I''d like to keep my car until it gets up to 200,000 miles! I just don''t want a newer car and have to worry about the doors getting dings in them or the interior not being prestine. (oh and even though having a payment is a choice, I''d rather have that obligation then an older less reliable car and have it break down on the side of the road.) Of course, that is because we can make the payment. There is always the bus if I had to.
MC, I''m hoping to keep ours for a long time too. DH works in the auto industry and gets to drive a company car, so that is how we were able to not have any car payments, but if he didn''t I''m sure he would still be driving my old Acura I had with 140k miles on it. But I''m just not into cars I guess....as long as they can get me from point A to point B without breaking down, I''m good to go!
 

steph72276

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Date: 2/22/2009 3:08:48 PM
Author: Haven
Date: 2/22/2009 9:18:47 AM

Author: steph72276

I'm really surprised at all the people on here that pay everything using credit cards and then pay it off in full every month. Since so many people aren't disciplined enough to do this and carry a balance, what is your secret to paying them off every month? Do you write everything down so you know how much of a check you will have to write at the end of the month? Do you do a monthly budget or just have a big surplus if you spend lots more that month? With my debit purchases, I go online everyday and then enter them into a money account so everything is balanced out everyday and I know what we have in our account. Do you do something similar?


I don't really see why using a credit card instead of a debit card for purchases would require one to be any more disciplined as long as they live within their means. It's not difficult to do this at all--we know what our monthly expenses are because we have the same bills to pay each month (mortgage, phone, etc.) and unless someone has a spending problem, or if they earn very close to what they spend each month, I have no idea how using a credit card and paying it off in full would be very difficult.


Either way, we end up spending the same amount of money whether we pay for it with our CC or with our debit card.


To answer your question, we pay for everything with our credit card, and then I go online and pay off the balance in full every two weeks the day after my paycheck gets automatically put into our checking account. We can check our credit card balance online whenever we want to, but it's not like the number will every be a surprise, as we know how much we spend because WE are the ones spending it.


As for all of the people who are in debt up to their ears in this country, my guess is that a large amount of them are as you described--living in homes they can't really afford, driving cars they can't really afford, taking vacations they can't really afford, etc. Those are all choices. I choose to live far within my means so I can have the freedom to save a lot of money each month, and spend some extra cash to do things I really want to do.


It isn't brain surgery. Spend less than you earn. Pay your bills on time. Don't buy something if you don't have the money to pay for it.


(Of course, I realize that as a highly educated white woman I have been afforded many opportunities in my life that some people in this country never even had a shot at. I get that, and I'm grateful for it. And I realize that had my life's circumstances been different, perhaps I wouldn't be so fortunate to own our home and our cars and have a full year's worth of an emergency fund at my disposal. Some people never got the breaks that I've gotten, and they will never have the earning potential that I have, or that my husband has. And that my participation on a diamond forum is a clear sign that I am privileged, and that perhaps I shouldn't be so quick to say that saving money and living within one's means is easy, because I've never known any other way.)
It would require you to be more disciplined because you are not required to pay the balance in full every month wereas with a debit card, your item is already paid for. Someone may splurge on an item like a handbag at the beginning of the month, and then their car might break down and that money will have to go to the repair instead of paying for the handbag. I think too many people use credit cards as their safety net or emergency fund instead of having cash reserves. That's the importance of having that emergency fund set up instead of just relying on credit cards to pay for unexpected things, because unexpected things do come up.

eta: Oh and Haven, I wasn't talking about you not having an emergency fund, I'm just talking about people in general.
 

Beacon

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Packrat, eating out was a huge money waste for us too. Just cutting back on this is a huge savings!
Ha ha, yup! The other night I asked my husband what he wanted for dinner and he said pizza. I said, are you kidding, that''s twenty bucks!

So I made us omlettes with garlic, herbs and cheese, and rice alongside. I pointed out to him that the cost of our meal was less than three dollars for the both of us.

I am lucky to be married to a patient and likeminded man when it comes to spending issues. I think that is a critical thing: if you want to be able to save money, both you and your spouse have to be on board.
 

packrat

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Date: 2/22/2009 5:12:56 PM
Author: steph72276
Date: 2/22/2009 4:35:30 PM

Author: packrat

We carry a balance. I don''t like to, but we do. Sometimes it''s not a huge balance, sometimes we''re maxed out for months at a time. Granted, it''s only a $3000 limit, but to me, that''s a lot. We owe about 35k on the house and 10k on husbands truck. We''ve gotten kicked in the teeth several times since we''ve been married w/unexpected bills and each time it got harder and harder to bounce back. Together, we gross about 50k/year, and we have 2 kids. We''re not 100% frugal and smart w/our money all the time-we''ve cut back on eating out a lot, for instance.

Packrat, eating out was a huge money waste for us too. Just cutting back on this is a huge savings!

Yep, I figure we were spending about $300 a month eating out! I''ve got Dave Ramsey''s book..for all the good it''s done me, since I haven''t read it!
 

NewEnglandLady

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Date: 2/21/2009 12:34:05 PM
Author: Beacon
I love credit cards. Put everything on credit cards. But they are paid to zero each and every month.

We enjoy saving. Maybe it is puritanical but we enjoy doing stuff that saves money.

At this moment, the trunk of my husband's car is filled with plastic bottles that he will return to get the redemption fee. We are rather past the point of needing to do this, but still we do it. Hardwired by now, I guess.

When I was 11 I found out that for each $20 I put in my savings account, the bank would give me one dollar per year. I simply could not believe that such a great thing was possible. After that I never looked back.
We do the same. For us using credit isn't dangerous because a.) We live on a budget, thus paying cash or credit is irrelevant. We would never open our credit card statement and be surprised that it's $1,000 higher than we thought. and b.) We're never at risk of possibly not being able to pay. I feel like credit cards are bad for people who have a hard time budgeting and live at their means. We do neither and like getting the 1% cash back reward. In fact, just last month we were going to put our vehicle on a credit card, then write a check for it and immediately get money off of it--we ended up buying from a private seller, but I wouldn't blink at putting very large purchases on a card (without carrying a balance, of course). My FIL put his mortgage on a credit card and locked in 2%.
 

Rhea

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I don''t have the same control over cash that I do a credit card. I can reach into my pocket, pull out a £20 and ten seconds later forget where I''ve spent it. Having to sign or enter a pin number to access my money makes it real for me.

We put everything we possibility can on a credit card and pay it off when it''s due. We''ve made late payments twice, and both of those we had credited back because he had a good history of paying. It was our wedding and we just plain forgot to pay the bill that month. The other was when we were moving. We''ve never carried a balance.

When we first started living together we both wrote down every penny that we spent, which really helped us to figure out where money was going. After about six months we got a handle on what our averages were and can recognise any odd spending habits that we need to get back into check. Three years later I do think I need to start keeping track again just to make sure.
 

zhuzhu

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Date: 2/22/2009 6:30:48 PM
Author: NewEnglandLady
. My FIL put his mortgage on a credit card and locked in 2%.

I am really surprised to hear you can do mortgage on cc. I thought cc companies usually have a limit that is no more than 50K. How does he manage to put the entire mortgage on the cc for just 2%?

Would you mind telling us more about it as it sure sounds very smart financially.
 

TravelingGal

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Date: 2/22/2009 5:25:51 PM
Author: steph72276

Date: 2/22/2009 3:08:48 PM
Author: Haven

Date: 2/22/2009 9:18:47 AM

Author: steph72276

I''m really surprised at all the people on here that pay everything using credit cards and then pay it off in full every month. Since so many people aren''t disciplined enough to do this and carry a balance, what is your secret to paying them off every month? Do you write everything down so you know how much of a check you will have to write at the end of the month? Do you do a monthly budget or just have a big surplus if you spend lots more that month? With my debit purchases, I go online everyday and then enter them into a money account so everything is balanced out everyday and I know what we have in our account. Do you do something similar?


I don''t really see why using a credit card instead of a debit card for purchases would require one to be any more disciplined as long as they live within their means. It''s not difficult to do this at all--we know what our monthly expenses are because we have the same bills to pay each month (mortgage, phone, etc.) and unless someone has a spending problem, or if they earn very close to what they spend each month, I have no idea how using a credit card and paying it off in full would be very difficult.


Either way, we end up spending the same amount of money whether we pay for it with our CC or with our debit card.


To answer your question, we pay for everything with our credit card, and then I go online and pay off the balance in full every two weeks the day after my paycheck gets automatically put into our checking account. We can check our credit card balance online whenever we want to, but it''s not like the number will every be a surprise, as we know how much we spend because WE are the ones spending it.


As for all of the people who are in debt up to their ears in this country, my guess is that a large amount of them are as you described--living in homes they can''t really afford, driving cars they can''t really afford, taking vacations they can''t really afford, etc. Those are all choices. I choose to live far within my means so I can have the freedom to save a lot of money each month, and spend some extra cash to do things I really want to do.


It isn''t brain surgery. Spend less than you earn. Pay your bills on time. Don''t buy something if you don''t have the money to pay for it.


(Of course, I realize that as a highly educated white woman I have been afforded many opportunities in my life that some people in this country never even had a shot at. I get that, and I''m grateful for it. And I realize that had my life''s circumstances been different, perhaps I wouldn''t be so fortunate to own our home and our cars and have a full year''s worth of an emergency fund at my disposal. Some people never got the breaks that I''ve gotten, and they will never have the earning potential that I have, or that my husband has. And that my participation on a diamond forum is a clear sign that I am privileged, and that perhaps I shouldn''t be so quick to say that saving money and living within one''s means is easy, because I''ve never known any other way.)
It would require you to be more disciplined because you are not required to pay the balance in full every month wereas with a debit card, your item is already paid for. Someone may splurge on an item like a handbag at the beginning of the month, and then their car might break down and that money will have to go to the repair instead of paying for the handbag. I think too many people use credit cards as their safety net or emergency fund instead of having cash reserves. That''s the importance of having that emergency fund set up instead of just relying on credit cards to pay for unexpected things, because unexpected things do come up.

eta: Oh and Haven, I wasn''t talking about you not having an emergency fund, I''m just talking about people in general.
Uh no, that is why it is easy for us. I don''t even think about buying the handbag if I don''t have money for emergencies. That''s just not a smart use of money.
As Haven said, we don''t spend more than we earn. Not even close. Every month for the last 3 years, we pay like we have a mortgage even though we don''t have one (the extra money goes into a account for a home downpayment). I''m not a shopper generally , but if I am going to buy a big ticket item (like the ring I am putting together currently), I CHARGE the amount for protection and the points and just go to my online banking and set up the payment on the cc for the item because I have the CASH in hand.

Basically I buy nothing unless I have the money for it and then some. I agree that many people can''t do this. If you don''t have the emergency fund lined up, you have no business running around buying whatever items you feel like. My husband and I have a credit card each. We don''t accept all the credit offers that come our way nor do we take the full amount that the bank is willing to loan us for a house.


Our friends drive Mercedes. We drive Fords. I got a fair amount of ribbing for buying a huge box of used baby clothing for my daughter that came out to about 30 cents per item. I don''t care. I''m all for a splurge here and there, but it''s called a SPLURGE because you should be living the rest of your relatively frugally.


I read somewhere you can tell how well a child will succeed academically by his/her ability to delay INSTANT GRATIFICATION. That is a bigger indicator of success than general intelligence. I believe the trait of being able to not need to be instantly gratified translates to being a fiscally responsible adult as well! Hey, I''d love a fancy car, nice shoes, lots of handbags, etc too, but I simply cannot afford it! Why is it that this concept is so difficult for so many???


Rant over.

 

Lauren8211

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I think financial maturity comes at different times for everyone. It''s not a "hard" concept to live within or below your means, it''s really not. Unfortunately, I am just learning it now. I got into serious CRAP with credit cards when I was about 19. Mom paid them all off. I opened them again, mom paid them all off AGAIN when it got to be too much.

As I got older, I realized that I can''t live that way. I had to cut my mom off from supporting me.

I''m still learning though. Now that J and I are saving for a house, I''ve become abnormally (for me, at least)frugal. I guess I had to make some mistakes and grow a little bit before I realized how to handle credit cards. Now we save money, and use cards for emergencies, and for the first time, I have a savings account with more than grandma''s 8 dollar birthday check sitting in it.

It''s rewarding once you start trying it. We started actually using coupons, which I''ve never done before. We''ve made it a fun challenge to save money!

I''ve come to value seeing my savings account grow, as opposed to 5 years ago, when my purse collection and credit card balance grew. I never thought I''d get so excited in seeing a 0 balance credit card, but I love it now!
 

steph72276

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Date: 2/22/2009 8:17:09 PM
Author: elledizzy5


I think financial maturity comes at different times for everyone. It's not a 'hard' concept to live within or below your means, it's really not. Unfortunately, I am just learning it now. I got into serious CRAP with credit cards when I was about 19. Mom paid them all off. I opened them again, mom paid them all off AGAIN when it got to be too much.


As I got older, I realized that I can't live that way. I had to cut my mom off from supporting me.


I'm still learning though. Now that J and I are saving for a house, I've become abnormally (for me, at least)frugal. I guess I had to make some mistakes and grow a little bit before I realized how to handle credit cards. Now we save money, and use cards for emergencies, and for the first time, I have a savings account with more than grandma's 8 dollar birthday check sitting in it.


It's rewarding once you start trying it. We started actually using coupons, which I've never done before. We've made it a fun challenge to save money!


I've come to value seeing my savings account grow, as opposed to 5 years ago, when my purse collection and credit card balance grew. I never thought I'd get so excited in seeing a 0 balance credit card, but I love it now!
I make savings like a fun challenge as well. Since I quit work to stay home with our son, I basically try to make up for my salary I had as a teacher the best I can. So between savings from daycare, cooking from scratch instead of going out like we used to, saving on gas, work clothes, lunches, etc. I actually make up pretty well for my lost salary.
TGal, I hear ya....I would love to have a closet full of designer clothes and handbags and bling galore, but it's just not happening yet. But it does feel good to be responsible with your money even if it stinks to not have the newest this or that. And I totally agree on the kid's clothes. We had so many clothes given to us for Andrew that many still had tags on them and he didn't even get to wear them before he outgrew them. I never buy him anything from Gymboree or Gap unless it's on clearance!
 

Haven

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13,166
steph--I gotcha, that totally makes sense that it''s easier to get into trouble with a credit card because you don''t HAVE to pay off the balance every month. Not paying off the full balance is not an option in my mind, so that''s why it never even occurred to me, but I can see that with a different mentality, using credit cards could lead to trouble for some.

Tgal''s mention of instant gratification reminded me of that horrible video from the 80s that they showed in every child psych class I took in college--anyone know what I''m talking about? It was a longitudinal study about instant gratification and how a child''s need for it determines their success later in life (I believe, I saw this years ago.) A child was seated at a table in a room and given one marshmallow. The female psychologist told the child that if they still had the marshmallow when she returned from stepping out of the room for a few minutes, they would get two more marshmallows. However, if they ate it in whole or part, they would get no more marshmallows. It was awful--one boy sat in the chair, stared at that marshmallow, and pulled his hair and grunted for a minute before he popped the whole thing into his mouth. Another one paced back and forth with this tortured look on his face, ugh, I hated watching that. It was a cool study, though.

ANYWAY . . .

There are some really great books out there about the simplicity movement, and living stuff-free. I would go so far as to say that living below our means makes me a more content, peaceful person. I love that I have choices that I may not have had if we lived a little bit larger.
 

Haven

Super_Ideal_Rock
Joined
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Messages
13,166
You remember the video?! Did you hate it as much as I did? I thought it was the most horrible thing to have to watch. Those poor tortured, sweet-toothed kids! My family still makes fun of me about it, because I was so disturbed I called home terribly upset about the marshmallow-torture video. (I''m a closet softy, what can I say?)

I do see the connection, though, between instant gratification and financial security.
 

Dancing Fire

Super_Ideal_Rock
Premium
Joined
Apr 3, 2004
Messages
33,852
we swipe CCs a lot but we do pay it off each month. i''am proud to say we''ve been "debt free since 2004" no mortgage payments, no car payments
yetanotherdancyguy.gif
but i spent too much $$$''s dining out and other stuffs
14.gif
 

steph72276

Ideal_Rock
Joined
Mar 16, 2005
Messages
4,212
Haven, I just remember thinking how horrible for those kids. It wouldn''t have worked for me though...hate marshmellows! If they put a cupcake though, might have been more tempted
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DF, how awesome! I can''t wait to be debt free including our house. We should have ours paid off in 6 more years, but you never know what will come up. That would be a good feeling though, congrats!
 

NewEnglandLady

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Messages
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Date: 2/22/2009 7:01:24 PM
Author: zhuzhu

Date: 2/22/2009 6:30:48 PM
Author: NewEnglandLady
. My FIL put his mortgage on a credit card and locked in 2%.

I am really surprised to hear you can do mortgage on cc. I thought cc companies usually have a limit that is no more than 50K. How does he manage to put the entire mortgage on the cc for just 2%?

Would you mind telling us more about it as it sure sounds very smart financially.
Interesting, a 50K limit might be an Australian practice? Not sure, but you can definitely get higher limits here in the U.S.--I can''t imagine really needing more than 50K in credit though, you know? My in-laws have over 30 different credit cards, but I think the mortgage was put on 2 cards and they paid off one. They don''t carry a balance on any other cards, so I have no idea why they have so many.

I remember seeing the video of those poor kids with the marshmallows--I felt pretty bad for them, too. I understand the instant gratification experiment, but maybe the kids just had a sweet-tooth.
 

MichelleCarmen

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Messages
15,880
Date: 2/23/2009 8:16:36 AM
Author: NewEnglandLady


Date: 2/22/2009 7:01:24 PM
Author: zhuzhu



Date: 2/22/2009 6:30:48 PM
Author: NewEnglandLady
. My FIL put his mortgage on a credit card and locked in 2%.

I am really surprised to hear you can do mortgage on cc. I thought cc companies usually have a limit that is no more than 50K. How does he manage to put the entire mortgage on the cc for just 2%?

Would you mind telling us more about it as it sure sounds very smart financially.
Interesting, a 50K limit might be an Australian practice? Not sure, but you can definitely get higher limits here in the U.S.--I can't imagine really needing more than 50K in credit though, you know? My in-laws have over 30 different credit cards, but I think the mortgage was put on 2 cards and they paid off one. They don't carry a balance on any other cards, so I have no idea why they have so many.

I remember seeing the video of those poor kids with the marshmallows--I felt pretty bad for them, too. I understand the instant gratification experiment, but maybe the kids just had a sweet-tooth.
Actually, with your gals' descriptions of that marshmallow experiment, those kids sound like they were psychologically disturbed. Pulling hair over a marshmallow??? Sounds like they picked kids with certain behavioral traits, didn't feed them for four hours, and then stuck them in a room with the treat!
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Of course, I'm just saying that from my own experience as a parent and school volunteer. To help with learning to count/organize, we made "candy salads" in my younger son's kindergarten class and we put piles of hershey's kisses, gummy bears, m&ms, (and 7 other items), on a table and the kids counted them out and put specified amounts of each item into a paper lunch sack. They were NOT allowed to eat any of candy because we wanted everyone to have their bags filled before then. I helped the kids count/sort them and out of 19 kids, only one snuck candy! The rest were completely happy with the assurance they'd get the treats after everyone was done counting!
 

zhuzhu

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Joined
Mar 15, 2006
Messages
2,503
Date: 2/23/2009 1:45:49 AM
Author: Dancing Fire
we swipe CCs a lot but we do pay it off each month. i''am proud to say we''ve been ''debt free since 2004'' no mortgage payments, no car payments
yetanotherdancyguy.gif
but i spent too much $$$''s dining out and other stuffs
14.gif

That''s GREAT that you are debt free, DF! I guess what''s left for you to pay is just the cost of weddings for your daughters?

My goal is to be like you, be free of all debts by the age of 50 (we have no debt other than mortgage at this point) and own our house outright. Then I hope to retire early to do all the things I enjoy doing without feeling pressured to get paid..... :)
 

Dancing Fire

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Messages
33,852
Date: 2/23/2009 6:39:02 PM
Author: zhuzhu

Date: 2/23/2009 1:45:49 AM
Author: Dancing Fire
we swipe CCs a lot but we do pay it off each month. i''am proud to say we''ve been ''debt free since 2004'' no mortgage payments, no car payments
yetanotherdancyguy.gif
but i spent too much $$$''s dining out and other stuffs
14.gif

That''s GREAT that you are debt free, DF! I guess what''s left for you to pay is just the cost of weddings for your daughters?

My goal is to be like you, be free of all debts by the age of 50 (we have no debt other than mortgage at this point) and own our house outright. Then I hope to retire early to do all the things I enjoy doing without feeling pressured to get paid..... :)
not if they marry a Chinese. you know the "Chinese rules" the groom side pays for everything.
2.gif
 
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