Credit Cards

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Responsible is trying to pay off the balance in full each month. I am AMAZED at how many people have $10-$30,000 credit card balances. What that hell are they thinking? Do they not realize they have to pay the money back? I guess I could see it as a last resort with medical bills but that's it.

 

I can't see it, either. They must think somebody's gonna cover their butts. I never carry a balance. If I need a lot of money I'll make arrangements with a bank, etc, somewhere with a lower APR. Desperate people maybe, you know in an extreme pinch when all other avenues have been exhausted.

 

my A/E has adeal where you can basically finance this months balance and make payments and start new. I scrolled around and looked and it would seem their interest rate is astronomical if you do it that way Home Dept will eat you for breakfast too if you only pay the minimum.
My wife has probably 10 credit cards and pays that normal 25 bucks per month for being a day late on each one. She has a couple she never uses and even gets a late fee on the yearly charge. I've tried to set her up to pay on the net and let me handle it but she don't trust the net or me, ain't sure which one.

 

Either that or they think they'll just declare bankruptcy and walk away. Good thing that has become more difficult. I've seen a Dr. that made $300K/year get turned downed for a $25K loan because he obvioulsy declared bankruptcy to get out of paying his student loans. People can't do that anymore, but back in the day they could.

 

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I like the idea of one card with a lower limit geared more for net use and a primary card with a good rate and features. I got a 9% card from work with a nice limit for a primary and want to get rid of my capital one card for something with no annual fee.

But I know people who do ALL their purchasing on their credit card for the airline or whatever points, then pay it off every month, and I guess they feel they're simplifying their finances by having all their money coming from one place and getting one statement. I guess if you spend a lot of money, maybe the reward points are meaningful (like with the GM card or something?), but I don't know that I'd benefit that much from it. Seems too complicated.

 

Why would anyone need a credit card? Seriously. I haven't had one since 1997 and I'm doing just fine.

 

Until USAirways started having trouble, we racked up enough points for several free flights. We decided to switch to Worldpoints recently. The credit card is essentially for big purchases and filling up the gas tanks.