Best way to save money? Never spend it through credit cards

The Pittsburgh Post-Gazette ^ | Monday, November 24, 2003 | Alan Lavine and Gail Liberman

[Willie Green]

How would you like to earn a safe and easy 24 percent to 70 percent on your money? The answer may be simpler than you think. Stop using credit cards.

We hate to be the bearer of bad news as the holiday season gets ready to kick into full gear, but this simple savings strategy that everyone can do came to us while having dinner recently with a friend from Sharon, Mercer County.

[Willie Green]

"Think what you do when you run into debt;
you give another power over your liberty."

-- Benjamin Franklin (1706 - 1790)

[stainlessbanner]

good advice

[Enterprise]

I'm aware of this, but just try to convince (you know who).

[Phantom Lord]

Its tough to buy stuff on the internet without using a credit card.

Also, big ticket items (fridge, stove, washing machines, etc...) should be bought with a CC as they provide additional beneficial protections if there is a problem with the product.

And if you think I am going to pay for a plane ticket with cash you are crazy.

The key is to only buy what you can afford and to pay the account off each month.

[jrp]

I guess if you really have no self-control, you
could try paying for everything with pennies.

[BrooklynGOP]

Nothing wrong with credit cards as long as you pay them off every month.

[stainlessbanner]

I agree with your assessment, but I'll bet most consumers who have plastic use them for much more than just tickets, appliances, internet.

[Phantom Lord]

No doubt about it.

[wordsofearnest]

Amen I do that plus I have a no fee card with 1% discount on purchases and 5% on gas purchases.

[lelio]

Our friend was stunned when we both pooled our cash to pay the restaurant bill, instead of unveiling a piece of plastic. "Don't you want all those frequent-flier miles?" he queried.

How much does it cost a business to accept credit cards? Is it a percent of sale, or a fixed amount? Do you rent the CC swiper? What about disputed (ie stolen CC) charges?

[ContemptofCourt]

What a stupid article....credit cards are fine, great even, as long as you pay them off every month.

Why should I pay cash, when I can use a CC and get 3% of my purchase back at the end of the year?

[Revolting cat!]

The piece of wisdom I get out of this is that you can make a living giving stupid advice to people stupider than you!

[Fierce Allegiance]

According to Einstein, the most powerful force in the
universe is compounding interest.

Carry a balance on a couple cards & you'll see what he means.

[thecanuck]

"...it makes us think much harder about how much we're spending...but behavioral studies indicate you also are apt to buy much less when you pay with cash than with a credit card."

This is a key point. It has nothing to do with the balance. I would have to agree, if I only have $50 in my pocket, I am much less likely to top up with a bunch of impulse purchases. Great for my bank account but probably not good for the economy.

[lelio]

What a stupid article....credit cards are fine, great even, as long as you pay them off every month.

That's like someone saying an Atkin's article is stupid. Meanwhile 40% of the US is obese, and I would imagine that the same amount is in a lot of credit card debt.

[Willie Green]

Financial institutions and retailers don't try to push them on you, your wife, your kids and your dogs and cats out of the kindness of their hearts. They actually impose quite an overhead burden on business that is then passed along to consumers in the form of higher prices. Of course, the financial paper shufflers whose livlihoods depend on snookering the consumer will vehemently deny this.

It's the "service" economy, stupid.
Those who don't actually do anything have to connive a bite out of the cash flow somehow!
What better way than making it "convenient" to be financially irresponsible?

[BrooklynGOP]

How much does it cost a business to accept credit cards?

I think they charge business a percent or two off the transaction.

[AxelPaulsenJr]

Paying the credit card bill in full each month also stops interest charges.

[BrooklynGOP]

That's like someone saying an Atkin's article is stupid. Meanwhile 40% of the US is obese, and I would imagine that the same amount is in a lot of credit card debt.

Whose fault is that?

[lelio]

Whose fault is that?

Its pretty obvious whose fault it is, my beef was with saying that the article was stupid.