How much do you have on your credit cards?

Question

I feel I have too much and I panic constantly. I do pay more than the minimum amount each month.
I have two cards one has £400 approx. on and £380 on.

Is this bad? What about you? x x x

Answer 1

I will often charge more than that in a month, but to avoid interest charges I pay them off in full before the due date. This prevents the possibility of late fees and balances that leave me feeling panicky.
As long as you can afford to pay back what you charge, it is not bad. I believe 2 credit cards are sufficient, and it's nice to be able to collect loyalty rewards by using them.

Answer 2

If you think it's too much then it's too much. The financial experts suggest that you should not use more than 30% of your available credit resources and you should not have credit card debt that you could not safely pay off at any time from savings or other liquid source. The amount of your debt doesn't matter as much as your income and ability to repay. Get the credit card payments paid in full and adopt a "cash only" lifestyle. You'll save money in the long run by not paying interest charges and in some cases annual fees. In the olden days there were no credit cards and people lived just fine. The credit cards make it easy to adopt a buy now, pay later lifestyle. It's a trap and you are best to steer clear of it. By all means have a credit card for emergencies but you don't have to use it.

Answer 3

It varies from month to month, but it is always $0 at the end of the month. I buy everything I can on my credit card -- gas, groceries, restaurants, etc. I accumulate points and get free stuff. But I never pay an interest fee or a yearly fee. I also only write one check a month, so that account is easier to balance. My statements are also a nice way to see where my money goes.

If you carry a balance, you pay interest. That means everything you buy costs more -- usually about 20%. Why do this? Your balances are low enough that you should be able to pay them off in a few months. Don't buy anything new until this stuff is paid for. Then save enough money to pay for what you buy before you buy it. Whether or not you buy it on credit is not the issue, so much as how long you let yourself pay for it.

Credit cards are great for emergencies, and you never have to wonder if you have enough cash. You can also use them for easier bookkeeping, like I do. Using it like an ongoing loan isn't a wise financial decision.

Loans paid over time should be for big ticket items like mortgages, cars, student loans. These loans also have much lower rates.

Answer 4

None. I don't own credit cards. If you can't afford it don't buy it.
I use lay-bys if I have to but thats it. I hate the idea of debt and we live in too much of a materialist world.