Are you learning with me it just be best to use cash for everything and not your banks or credit cards?

Question

I hope others out their are getting some hands on training with these questions in the past few days.

Answer 1

cash is king. you spend more with credit cards. stay away from them. If you use them sooner or later your gonna get bit. The credit card companies make all the rules. They can change the rules in the middle of the game.

you dont need credit in todays world. What makes today so different from yesterday?

Answer 2

I feel your pain. Banks and credit card companies mostly prey on the low income people, because they don't have the resources to fight back. They will take advantage of you. That said, I have to say that I use a credit card daily for most expenses. The key is, of course, to pay the balance off every month. If you use a debit card, it is easy to forget where your balance is before making a purchase. The banks count on this happening, and make a huge profit from overdrafts. With a credit card, while you don't need to have the funds upfront, you do need to pay off the balance every month. If you don't, the fees and charges will add up in a hurry, and will eventually sink you financially. As a young family, we struggled to make ends meet daily. The free and easy credit, along with the financial weight of medical bills finally sank us to the point of bankruptcy. We found that we could only survive by paying cash and working extra jobs. Now that the children are grown, and on thier own, we finally have financial security.

Answer 3

There are reasons to use cash. For people who have difficulty budgeting, cash is either there or it isn't. Which means that if you plan to have say $100 to spend all week, once it is gone you are done. With a debit or credit card, it is easy to say I'll just get this one more thing, which turns into two and oh how much did I spend on Monday?

There are also reasons to use cards. For example, the extended warranty that you get from some cards, or the rewards that you can earn. Also it is difficult (almost impossible) to rent a car or hotel room with cash alone.

Answer 4

I do not agree.I used to think the same.What I do is use a credit card all the time,get cash back bonus points,but then I pay off the whole amount when the statement is due.That way I have never paid interest.I just prefer not to carry cash on me.It is very easy to get deep into debt if I didn't do that.We just have to be wise about credit cards.

Answer 5

For the most part I have to agree. You do however want to maintain a good credit rating. Someday you will want to make a major purchase. In my experience no credit is worse than bad credit.

What I have done is I've reduced my credit to 3 major cards, set up all of my bills (gas, elec, phone, etc) on auto-pay using my credit cards. Every month when the credit card bills come I pay them off.

Beyond that I try to forget that I even have credit cards.

PS. My FICO (mid-score) is 792 - It works!

Answer 6

I am currently trying a new scheme whereby I place money which would be for food into a high-bearing interest account, then use my credit card to buy food, take note of when my interest is taken out and then take the money out and pay my credit card bill, so Im gaining a little extra money in interest

Answer 7

Why is that best? If you're trying to build good credit, it is the worst thing you can do. But, if you are irresponsible and can't manage your credit cards, then I guess it would be best for you. As for bank cards - that's the same as cash. Although, I guess if you can't balance your checking account and manage your money...then cash would be the alternative. I never ever have cash...you don't need it.

Answer 8

No .. its not.

RESPONSIBLE people can build credit by using credit cards and loans. Everyone will need a mortgage someday. And most people even need car loans or leases. Sure, I guess not everyone NEEDS a credit card, but they are the best way to build credit so you can get that good interest rate down the road.

Answer 9

If you have the money to pay for the things your buying, why not just use your credit cards and pay them off in full every month?

This builds your credit, it's interest free, you don't have to carry around lots of cash and you have a paper trail, you earn cash back and other perks.

The only reason to use cash only is if you can not manage money.

Answer 10

It is sad to say but in today's world you need a "line of credit"


And that's the rub. Don't use it all up and make timely payments so it will be available to you to make plane/hotel/car reservations.