I'm giving serious consideration to saying "no more" to contracts and credit cards. No matter what you do, how long you've had an account, or how well you've paid...if you have even one problem you get screwed. Interest rates are ridiculous, and the "binding arbitation" agreement in so many contracts is skewered heavily in favor of the business.
Of course, I have a mortgage and a car so I can't do away with those contracts. But I'm thinking of closing out our few credit cards and finishing out what contracts we have and not purchase things on credit or take out other loans or whatever.
Does anyone else go on a "Cash only" basis? How does it work for you? Is it less stressful?
2006-09-01 15:37:19 · 7 answers · asked by WhyAskWhy 5 in Business & Finance ➔ Personal Finance
Yes i too have realized what an insane thing it is to have credit cards . My savings has grown, i feel less stress because everything i own now belongs to me.,except house and car.The satisfaction I feel every time i pay with cash is wonderful and i get past all the lines so much faster. CASH is a Blast!!!!
2006-09-07 12:23:47 · answer #1 · answered by Mr.Morgan 4 · 0⤊ 0⤋
Keep the credit card accounts open but destroy the cards so that you aren't tempted to use them. Never close an account in good standing. The reason is that the more accounts you have in good standing with zero balance, the better your credit scores will be.
Even though cash only is the way to go, keep in mind you may want/need to use credit at some time in the future such as if you want to move and buy another home, buy an investment property, or if you have some kind of medical emergency or disability. As long as you keep the accounts open with zero balance, you will maintain excellent credit scores. But having no accounts open counts against you for some crazy reasons. It's part of the Fair Isaac (FICO) system.
2006-09-06 10:05:05 · answer #2 · answered by falkon81 2 · 0⤊ 0⤋
I buy almost everything on a credit card. I have never paid interest!!! To the credit card company I (and actually about 1/3 of credit card users), am known as a dead beat or free loader or what ever. I pay my balance in full each month. I use the card for the cash back "reward". Works out to a hundred or 2 a year. No reason not to take it.
2006-09-01 16:00:35 · answer #3 · answered by veritas 5 · 0⤊ 0⤋
I am a huge fan of cash only basis. If you dont have the money to buy something dont put it on credit. Most credit cards are around 20%. The ONLY credit I recommend is a mortgage and a vehicle loan. Overtime with inflation you end up beating the system, that is if your loan is lower than inflation. 9 times out of 10 though its not.
2006-09-01 15:43:11 · answer #4 · answered by dkwr14 3 · 0⤊ 0⤋
Yes I do and have all my life. IF I dont have the money I do without, so I get off my butt and work for what I have CASH ONLY! I sell on ebay LOL! So of course I use my paypal credit card off line just like a credit card, but most of the time I get cash back to pay bills.
2006-09-01 15:54:03 · answer #5 · answered by reasonable-sale-lots 6 · 0⤊ 0⤋
I don't do things on a "cash only" basis because I'm fairly young and need to build up my credit for the future. However, I don't actually buy anything on credit beyond gas for my car. Groceries are paid for by check and I don't keep money with me (the more I keep with me, the more I'm going to spend willy-nilly and end up thinking "Where did it all go?") However, if you've already established credit, I'd say a cash-only policy is a fine one to have.
2006-09-01 16:01:45 · answer #6 · answered by Vadalia 4 · 0⤊ 0⤋
To minimise the risk of handling cash too much, it is better to have credit cards of two prominent ones. Cash only helps to know your immediate liquid cash and clear warning signal will be given at the right time.
VR
2006-09-01 20:55:36 · answer #7 · answered by sarayu 7 · 0⤊ 0⤋