It is tough NOW. So how are we coping

ceridwen

Primrose wrote: »

I've heard several stories about credit cards being cancelled through lack of use so I think if people are keeping them for emergency use only, even though they hate debt of any kind, I think it does pay to use them regularly for small amounts, even if you pay them off in full every month. It's reassuring to know that money could be available quickly in an emergency, especially if you're on holiday, abroad, your car is involved in an accident, etc so even though you've got the money in your bank account to pay cash, there are times when keeping your continengency measures in good working order makes it worth using a credit card for some payments.

I didnt know that. Well - now that I've finished my mega Amazon bookbuying session using my credit card (duly paid off each month) - I suppose that means it would be a good idea to pay at the supermarket till say once every couple of months with it (darn it!) to keep it "current" and then pay the resultant bill off next month:mad:

greenbee

ceridwen wrote: »

I didnt know that. Well - now that I've finished my mega Amazon bookbuying session using my credit card (duly paid off each month) - I suppose that means it would be a good idea to pay at the supermarket till say once every couple of months with it (darn it!) to keep it "current" and then pay the resultant bill off next month:mad:

If you're planning on paying it off in full every month, and only using it to keep it active (I had a problem with this with the emergency one that lives at home for if/when my bag is stolen!), then set up a direct debit to pay the full amount automatically. That way you don't risk incurring late payment penalties.

elizabunny

Primrose wrote: »

I've heard several stories about credit cards being cancelled through lack of use so I think if people are keeping them for emergency use only, even though they hate debt of any kind, I think it does pay to use them regularly for small amounts, even if you pay them off in full every month. It's reassuring to know that money could be available quickly in an emergency, especially if you're on holiday, abroad, your car is involved in an accident, etc so even though you've got the money in your bank account to pay cash, there are times when keeping your continengency measures in good working order makes it worth using a credit card for some payments.

This is true Primrose, we had a card which we just kept for emergencies and unfortunately my purse was stolen last year with this card in it.
We hadn't used it for a good while and when we ordered a replacement card, we were told that as we hadn't used the card for some time, we would have to re-apply before they would let us have a new card. We decided that they could keep their card but felt really annoyed, as this card had been issued by our own bank, who we also have our mortgage with and they have known us for nearly 30 years! We have never defaulted on anything, but I think they didn't want to replace our card because they knew we would hardly ever use it. Obviously, we were not the type of credit card customer that they wanted to keep. So I agree it's probably wise just to spend a little on a card if you want to keep it and pay off asap.

bails

I agree about the credit cards, mine was cancelled for the same reason. Setting up a DD means you don't need to worry about it.

Hi Catznine, long time! :hello: Yes, in Nepal at mo, leaving for Tibet in January; all very exciting! :j

missychrissy

I have an Asda credit card. I have a direct debit that pays it off in full every month so that I get no charges. I get money vouchers from them twice a year the value dependent on how much I have used the card. I use it therefore for as many purchases as I can. Why pay cash when I can have money back.

I don't have a problem with being disciplined with my card. It makes good OS sense to me to use it for as many purchases as I can to get money off my shopping.

I have a similar card with M & S but I tend to use it only in M & S though I could use it anywhere. I prefer to have money off my essential food shopping rather than clothes as, if I'm honest, I could live for years and never buy any more clothes.

maryb

I have a John Lewis card which gives me vouchers depending on how much I spend. You get double points for spending in Waitrose and now that they have launched their essentials range I find it is reasonably competitive for the stuff other than the very basics which I would get in Lidls.
I have set up a direct debit to pay the full amount evry month but I found it was hard to keep in mind exactly what I really had available in the housekeeping account because I had to subtract the balance on the card from the balance in the account it was going to be paid out of. It's only a simple sum but I tended to guess and usually got it wrong!!
What I now do is to use Microsoft Money (I don't think you can get it any more in the UK which is a shame but you could set up a spreadsheet if you are good at Excel) and show a future transfer from the houskeeping account to the credit card account equal to the current balance on the card. I update this transfer amount every time I use the card. The end balance on the credit card account is therefore always nil, if you see what I mean.

When I look at the housekeeping bank account I can see how much money I have at every stage - both now and when the direct debit goes through. That really helps me to budget

BigMummaF

Twistin loada @&">)+@/<*$^_"!: :mad:
Have to say that the 'use-it-or-lose-it' philosophy re:credit cards is a revelation to me too, but what a flammin cheek :eek: There was me thinking that HOW I pay is surely MY choice & I'll use whatever method I feel appropriate at the time.

I'm a great believer in freedom of speech, thought & deed providing it doesn't directly harm another living thing but more & more of that freedom is disappearing from us & I DON'T LIKE IT.*enter stampy-feet MrAngry smilie here* I thought I lived in a country where I could make my own choices, live my own life, have my own interests....


Anyone for a revolution?...sometime next week? Wednesday's good for me, around 2:15 but let's do lunch on Monday to finalise...12:30 at Vittorios :cool: Oh hang on! I've got my Apathy for Beginners at 2 so...can I get back to you on that....

furndire

I agree with you MissyChrissy - Visa Credit cards are a good way of paying for large items, or stuff like holidays in advance - SO LONG AS YOU CAN AFFORD TO PAY THEM OFF EACH MONTH. If a company goes bankrupt before you get your goods, you are covered to get your money back by the credit card company. I have had a credit card for over 40 years and luckily been fortunate never paid interest on it - but it was always top priority to pay it off - nowadays by direct debit, but straight into the bank in the good old days. I use Tesco's one nowadays anywhere but at Tesco. Just use it as a Club card to collect the points in store.

NannyOgg

furndire wrote: »

I use Tesco's one nowadays anywhere but at Tesco. Just use it as a Club card to collect the points in store.

If you pay in Tesco with a Tesco card, you effectively get double Clubcard points - points for the shopping, plus points for spending on the card :T

Hardup_Hester

Hi all
Hugs to Frugalista, we've just heard hubby's out of work within the next 2 or 3 weeks, life sucks!
Hugs Hester