When you are debt free, will you use credit cards again? If so, what for?

Bagpuss741

When I've paid them off I will close my Capital One card and keep the M&S &More card for emergencies such as vet bills and car repair bills

MinnieSpender

I've just been sent a new credit card - I was in debt with it and cut it up so I had no idea when it officially "ran out". I've only got £200 left to pay on the balance but I will keep the card and I intend to use it for groceries once the balance is paid in full - BUT the money I've "spent" will be transferred from my current account into my savings account (to earn a bit of interest) and then the balance of my CC paid as soon as the bill comes in.

jessicamb

I have an Egg Money card which offers cashback so I use it for shopping - and you can 'prepay' money onto it monthly so I transfer the same amount every month and use it as a spending pot rather than repaying debt.

debbycatz

MinnieSpender wrote:

I've just been sent a new credit card - I was in debt with it and cut it up so I had no idea when it officially "ran out". I've only got £200 left to pay on the balance but I will keep the card and I intend to use it for groceries once the balance is paid in full - BUT the money I've "spent" will be transferred from my current account into my savings account (to earn a bit of interest) and then the balance of my CC paid as soon as the bill comes in.

This is what I do too with my credit card. I find it helpful to pay for groceries on it and then pay it off each month.

Seems like we have all learnt a lot from being on this site. I think it is true to say that having a credit card is not a bad thing per se - it is how you use it that is important.

Thanks for all the replies - it's been really usefull listening to others views, thoughts and ideas.:money:

HappyIdiotTalk

I shall be keeping mine, and I only have one of them anyway. I do a lot of buying online and always use my credit card for those types of transactions. When I'm debt free again I'll be setting my card up to be paid off in full each month... which is not something I can do right now.

However I am trying to get into the habbit of using my debit card for supermarket and fuel purchases as I pay more attention to my bank account than I do my credit card.

postingalwaysposting

nah i havent got any of my credit cards (got rid of them when i became debt free) but unlike all of you i still live at home so the highest bill i could ever have is a vet bill :rolleyes: but saying that i do have an 'emerginces' fund in the form of a savings account it usually sits at £50 but when i forget to look at it interest soon mounts up

Molanole

I too have to have a credit card for work expenses but I'm not sure whether I'll use one for anything else other than real emergencies. I can't trust myself to use one for groceries and petrol and stuff as I seem to spend more when I use my credit card. I think if I'm paying with my debit card my brain understands that there is a finite limit of never more than 100 pounds or so in my account and so I don't overspend. With my credit card that finite limit is so much higher that my brain relaxes and allows me to splurge.

At this point I'm just trying to avoid temptation. Once I am debt free I hope I feel sufficiently trained to be able to use a credit card wisely.

tesuhoha

Ive got an American Express Amex card which I use for day to day purchases as it pays a high cashback rate. Although we are in debt I always pay this one off first each month and I will continue with it after the debt is gone.

pms

I think once I am debt free I may apply for a credit card that I will keep in my car incase I breakdown, it'll be cash all the way and saving up for everything else.

I've learnt my lesson the hard way

Joe_Bloggs

You do get some section 75 consumer credit act protection by using a credit card to purchase things over £100. You will find such protection unavailable for debit card and cheque purchases (including credit card cheques).
J_B. (Many links on the web to its use.)