Silly Question on credit cards! Or not?

Happy_bunny

Hoping someone can clarify this for me - I want to start using my credit card as my sole payment, For everything, utilities, on-line food orders ect each month.

My thoughts are using this will mean i don't have to carry too much cash around - which gets spent too easily! :mad:

If I ensure the full balance is paid by the payment date then I'm just paying for all my purchases in one - Or am I missing something really obvious? :eek:

Thinking this would really simplify my budgeting rather than using different cards and cash for different purchases.

Help appreciated! :T

mo786uk

No that is right, if you clear the balance each month you will pay no interest.

I use this theory but with my bank account - i.e if everything is trackable on my statement I can see where my money is going

Only danger is spending cash whilst also racking up bills on the CC

Venusflytrap

Happy_bunny wrote: »

My thoughts are using this will mean i don't have to carry too much cash around - which gets spent too easily! :mad:

This could simplify your budgeting if you are very disciplined in using your card with the same consciousness as spending cash in real time. I find that the 'reality' of my purchase is more stark when I (not my OH!) count out cash. The wallet gets lighter and lighter...

With a card, whether the balance on it is £150 or - £150, it's still the same shiny, shapely, siren of a card! :rotfl:

P.S: With utilities, check that the companies don't charge an admin or processing fee for paying with a CC. Also if you set up a regular payment using your CC it may not be set up as a Direct Debit but a Continuous Payment Authority which apparently is more hassle to cancel.

Sorilla

Just so many people fool themselves into thinking that plastic money is harder to spend, in fact it is much easier - be careful !

Mozette

Happy_bunny wrote: »

Hoping someone can clarify this for me - I want to start using my credit card as my sole payment, For everything, utilities, on-line food orders ect each month.

My thoughts are using this will mean i don't have to carry too much cash around - which gets spent too easily! :mad:

If I ensure the full balance is paid by the payment date then I'm just paying for all my purchases in one - Or am I missing something really obvious? :eek:

Thinking this would really simplify my budgeting rather than using different cards and cash for different purchases.

Help appreciated! :T

You need to do a budget, then you know what you have available to spend, and whether you spend it as cash or by card it is the same amount.

Venusflytrap

Mozette wrote: »

You need to do a budget

Doing a budget is the 'easy' bit. With access to only cash you can only spend what you physically have/can afford; with plastic you can spend what you have and beyond what you can afford.

Happy_bunny

Thanks for all the replies - some good points to keep an eye on! :beer: