Comments on: Using Cash

By: Wookieluv

Wookieluv — Tue, 25 Mar 2008 16:17:35 +0000

I don’t use Credit Cards…I used Debit Cards.
=D

By: Andrea

Andrea — Sun, 23 Mar 2008 20:23:39 +0000

I seldom carry cash. Of course I see my balance on my bank account many times a day. I usually keep a few dollars in my wallet for simple things but at gas stations etc, I’d rather use a card, thus saving me having to prepay or go inside where I’ll be tempted by fancy coffee etc.

By: Burrowowl

Burrowowl — Sat, 22 Mar 2008 03:34:22 +0000

My understanding is that maintaining more than two credit cards with a zero balance hurts your credit, but so does having more than two credit cards period. I’ve personally been on both sides of the credit story. I’ve been gouged by MBNA back when I was a stupid college student. I also put about $10,000 onto a Visa (debt incurred from a wedding and honeymoon), then transferred it over to a Discover card that had a 0% rate for twelve months. Paid it off in ten months without paying a dime in fees. Credit card companies make their money through fees and leverage. Keep yourself on the right side of the leverage and you’ll be fine. Get into an auto accident or develop a chronic injury, and your banker buddies will be right there ready with a knife to put in your back. Caveat emptor and all that good stuff.

By: logtar

logtar — Fri, 21 Mar 2008 15:49:19 +0000

You might indeed be outsmarting a credit card company I guess… but I am very skeptical about this… almost as much as people that think they can outsmart a casino. After all I know about credit card companies, from having worked for third party collection agencies and just my personal experience I don’t think they are out there providing a service and is cool if you don’t carry a balance. Did you know that having a credit card with zero balance from month to month actually hurts your credit score?

By: meesha.v

meesha.v — Fri, 21 Mar 2008 15:41:28 +0000

I know all the horror stories,but APR only matters if you carry a balance. I haven’t had any problems so far and I have some free cash to show for it. I booked a cruis for my Mom and got a $250 credit for using Mastercard. How much are extended warranties for every TV and game console and even my laptop - pretty good amount if you them up. No one said that they are your friend. No business is your friend.

By: logtar

logtar — Fri, 21 Mar 2008 14:08:45 +0000

Wookieluv, I used to think like that. I thought that if I had cash, it would burn a hole in my pocket, but it really does not. I now tend to not spend the cash until I need to… seriously give it a try for a while and you will see.

Meesha, I mean this as a friend, you have totally bought into the marketing machine that credit cards have created… you have replied with every single one of their comebacks. After watching some educational shows about CC and being severely burned by their practices I despise them.

Did you know that they can change their APR not by just missing one of their payments but ANY payment. It happened to me… I used to think it was so cool to have credit cards until my bank messed up my car payment… this was about some years back. I thought fixing the issue with both the bank and the car company was enough, but then all of my credit cards to raise my APR some even doubled it… when I called them they were rude and refused to lower it… I had just purchased a house at the time so I could not just close the accounts… the story keeps going, but trust me credit cards are NOT your friends.

By: meesha.v

meesha.v — Fri, 21 Mar 2008 03:58:22 +0000

I completely disagree. I hardly use any cash and charge everything. I don’t have any balance on my cards. By trying to maximize cash back on the cards I make anywhere from $500 to $700 between all my cards (most of the time I use only 2). By using credit cards I also have benefits of being able to dispute the purchase (used it),double the warranty on most items (used it), 90 days protection (I used it when my text books were stolen in college and got my money back). I also do online banking and write less then 20 checks a year. I may go to ATM once a year. So I actually make money by using cards and since I am a grown-up a don’t have to have a bill in my hand to make a buying decision.

By: Mark M

Mark M — Thu, 20 Mar 2008 19:03:08 +0000

Very good points there. A lot of the same principles used by Dave Ramsey in his money management program. Cash is also a lot easier to budget because you can see it and when it is gone, it is gone! Good luck keeping at it.

By: Daniel

Daniel — Thu, 20 Mar 2008 15:19:05 +0000

I HATE using checks. I hate using ATM cards, too. I prefer to use cash as much as possible for my daily things. Which usually only consists of a trip to the local coffee joint. Like you said, it hurts to see a 10 go bye-bye, but at the same time, that 10 dollar bill won’t bounce and won’t cause you penalty fees in the days and weeks to come.

By: Wookieluv

Wookieluv — Thu, 20 Mar 2008 14:42:43 +0000

I Prefer the disconnect. Why would I want to “see” my cash leave my hand. Less pain with a card. I rarely have cash on hand, I tend to spend MORE if cash is on me. Making a conscience effort to change one’s spending habit of paper or plastic? More power to ya. And for the record I hate those Visa commercials……

By: Nuke

Nuke — Thu, 20 Mar 2008 13:39:55 +0000

I use my card for big things, like gas (how much does $3+ a gallon suck) or the grocery store.

But I start every week with cash in my pocket to pay for things like coffee, bottled water at work, and dining out. If it isn’t in my pocket when I need it I have probably been doing something wrong.

I know people who use plastic for everything. I agree with your assertion that it disconnects people from how much they have and how fast the are bleeding it out.