Posted on 05/02/2014 3:43:59 AM PDT by Enterprise
NEW YORK (MainStreet) — Americans are relying less on their credit cards now, and more consumers are able to pay their balance in full each month, according to a recent Gallup poll.
The poll found that in 2014 48% of Americans always pay the balance of their credit card each month compared to 42% who paid them in full in 2006 and only 43% in 2008 during the Great Recession.
Now only 33% of credit card owners say they leave a balance each month, which is a record low since Gallup began measuring these habits in 2001.
(Excerpt) Read more at mainstreet.com ...
Hopefully people are falling out of love with debt.
I pay all my cards in full. No interest required. Plus I make around $1000 a year from my costco Amex card. WIN WIN!
“I pay all my cards in full.”
___________________________________________
I gave up all of my Master/Visa cards and used only my AMEX corporate card, where I had to pay in full every month.
When it last expired, I did not pay the high fee to renew.
When living internationally, it is not so widely accepted as advertised.
It would be interesting to see how many people who had Credit cards in that period from 2001 to 2008 have lost their jobs and had to declare bankruptcy, thus clearing out most debt?
Been credit card free for almost 10 years now. I’ll never look back.
“Been credit card free for almost 10 years now. I’ll never look back.”
_______________________________________________
I agree, but it is advisable to keep a debit card, or an AMEX that you have to pay in full each month.
One never knows what emergency could require their use.
People also in part used credit card debt when they were optimistic about their economic prospects in the future. E.g., a lot of startups were funded in that manner.
Do you not order anything online? Travel with a need for a rental card? Buy electronics for which an extended warranty is useful? Like the ability to dispute charges if something wasn’t delivered right?
The answer to this is simple. DON'T PAY FOR LIFESTYLE WITH DEBT. The instant gratification culture that prevails today has caused a massive load of irresponsible borrowing for things that are unnecessary.
Someone has maxed out their credit cards and is whining about not being able to get out of debt? Too bad. So sad. Save instead of borrow to start with.
Folks, notice how often in his posts Mr. Alex gets in the fact that he lives outside the United States. It's his claim to fame, poor thing.
Save instead of borrow to start with. ....Save to use a credit card, get the rebates, use the rebates to pay off the card in a few months and come out ahead. Just like a part-time job.
Excellent advice. Too bad so few people follow it. I wonder what the average debt of 0bama voters vs the average debt of conservatives is.
While I am not at liberty to say exactly what, I can say this, the Republic of Maine will be a Christian nation that is a true Republic, not an oligarchy, like the US and the rest of the so called 'free' world democracies. There will be no federal reserve, nor will bankers or lawyers be in any place of power.
The costco Amex is free to exec members and you can run a balance. I don’t run one. I get 1%- 3% back on all purchases. So not only do I not pay for the card but I get back between $700 and 1200 a year. Win win
My advise on credit cards and debt is CASH whenever possible:
Charge to credit cards only if you need a record of the transaction otherwise cash is anonymous. Remember someone is watching what you buy and from whom.
By paying cash, you feel your spending habits immediately, not at the end of the period when the charges come due. Don’t have the cash, don’t buy.
If you charge, always pay off the charges in full each month thereby using their money interest free and maintaining a good credit rating. Never know when you might have a life (not life-style) emergency that requires temporarily going into debt.
Keep a small cash reserve at the ready. Cash gives you leverage to negotiate prices and to take advantage of special opportunities. Some transactions require cash only.
There are many more advantages to cash that I have not mentioned. I could go and on, but many freepers already know and practice this business model.
BTW, I didn’t say it was easy, you have to work your way through it.
I use a debit card for online purchases. I’ve had no problem disputing charges in the past. Most debit cards offer the same protections as credit. When my card number was stolen by a skimmer at a restaurant, they refunded me all of the money and apprehended the teen responsible for the fraud.
Banks take card fraud very seriously. I work for a CUSO with an enormous fraud department, and regardless if it’s debit or credit, they treat transactions the same.
As a recovering alcoholic, I’ve found that addiction can rear its ugly head in just about anything. I cut the credit cord many years ago, because I was finding that most luxury items could be had at the “swipe of a card.”
Instead, my wife and I budget our funds every month and only spend on large purchases when we have double the money saved that’s needed for the actual purchase. We are graduates of Dave Ramsey’s Financial Peace University, and we couldn’t be happier with our debt-free life.
Say what you want about “Cash back” and other gimmicks used by the card companies, I prefer to live my life under my own auspices. I don’t ever need to worry about reading fine print or dealing with the stress of calling an 800 number to deal with account issues. It’s much more peaceful this way, I believe.
To each their own...
Polls are not fact or factual.
Consumer credit is as large as ever. Read the “Financial Accounts of the United States” quarterly report.
Half the people are not paying off their credit cards every month. Not even close. People lie about such status.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.