Credit cards should be banned.

GettingThere_2

Credit cards are a bad thing.

Hi all :hello:

Credit companies should be made to publish and adhere to strict guidelines about the amount of credit they are allowed to offer. Increasing limits without consulting the customer is irresponsible, as is junk mailing people with a low credit rating guaranteeing them a card. If you can afford to pay off your cc each month in full, you don't *need* the card. If you can't afford to pay it off in full, then why are you spending money you don't have?

I voted against cc's ... as someone who has fallen into their trap in the past. Many people, especially those just finishing uni after studying for years, will snap up cc's and make use of the funds given., then be stuck with them. I agree, it's up to the individual to be responsible, but in this "out for what you can get" society, where are the guidelines to help newbies?

Well done *everyone* who's got rid of a cc recently, it's not as easy as some believe.
:T

soolin

I love my plastic.

I love my credit cards. I have three, all for different things and pay the balance off each month. That means I get interest on my money while it sits in my high interest account and I get some credit protection for the larger things I buy.

My mother never believed in credit cards until 12 years or so ago she lost loads and loads of money when two different furniture companies went bust just after she had paid them several thousand pounds in cash. As soon as she saw in the newspaper that people who paid by credit card could reclaim their money she insisted I got her a card.

She now is the secondary user on one of my cards and feels much happier using her pension money to buy things. She just bought herself a new TV for £300 and is happy that she is covered far more than if she had paid cash for the same item. However, she still saves up before she buys anything, then uses the credit card and gives me a cheque for the amount at the same time, she doesn't believe in buying on what she calls the 'never never'.

Soo

Swipe

I love my plastic.

GettingThere wrote:

If you can afford to pay off your cc each month in full, you don't *need* the card.

I always pay off my balance in full but *need* my credit card for secure internet transactions. There's no refund if you get ripped off on the Internet using your debit card.

keanoman

The best book I have read on getting out of debt so far by Jerrold Mundis "How to get out of debt, stay out of debt and live a prosperous life" - simple little book, and it will save your life. I feel bad plugging a book on MSE other than Money Diet, but I think it is a different book for a different type of person (some of us just spend more than what we have and carry on doing it throughout our lives). To quote from the book "A credit card to a serial debtor is like a handgrenade waiting to go off" - i.e. eventually, you will use it unwisely.

Give it a go - get the book from a library and see for yourselves.

PS - I am getting there, but did have a relapse last year, and that's what I want to eventually avoid - any relapses.

Keano

nearlyrich

I love my plastic.

I spend about £1000 to £1500 per month on my credit card mainly for work related hotel bills and diesel. I usually claim my expenses back monthly so I am able to pay the bill as it becomes due. Using my EGG card I get cashback or sometimes I use aTesco card for the points.

First: I never really know how much I am going to need, second: I hate carrying cash around, especially large amounts Third: I hate writing cheques and some hotels won't accept them and fouth: I would miss out on the cashback or points.

I like spending money and I often do but I have DD set up for full amount so if it's not in my bank or coming before the CC payday I can't spend it.

GettingThere_2

Credit cards are a bad thing.

Swipe wrote:

I always pay off my balance in full but *need* my credit card for secure internet transactions. There's no refund if you get ripped off on the Internet using your debit card.

Fair enough, would have to agree that there are benefits if you need to shop securely online, but as one poster said, if everyone used cc's properly, banks wouldn't make anything from them and wouldn't issue them!
:rolleyes:

margaretclare

I disagree that 'credit cards should be banned', but also, I don't particularly 'love' my plastic. It's a tool, that's all! It has to be used responsibly.

I can't imagine going back to a 'cash only' way of living. Having to queue up every week to get cash, then walk around with wads of notes...no, it's too dangerous.

Aunty Margaret

grumbler

I love my plastic.

GettingThere wrote:

..if everyone used cc's properly, banks wouldn't make anything from them and wouldn't issue them!

This is incorrect. Retailers are charged for every transaction. This charge is big enouth, so banks can even share it with a cardholder in a form of cashback.

GettingThere_2

Credit cards are a bad thing.

Makes me wonder even more why we allow them to make so much out of us!

phil999_2

Credit cards are a bad thing.

i would select option 3 - credit card compaines should take more responibility on checking peoples full debt and weather they can afford the credit. like i posted below

http://forums.moneysavingexpert.com/showthread.html?t=140212

I voted cc are bad as my option was not there.