Do you have a credit card?

tabby_cats_mum

BodieGirl wrote: »

Thanks for the reply!

Doesnt that technically mean that you are a month behind though, moneywise? I.e. if you pay your card on payday, you then need to use the card throughout the subsequent month as your wages have paid off last month?

Thats what I'm trying to avoid if you see what I mean?

This is my dilemma at the moment, have dug myself out of the debt hole, I'm never overdrawn and I pay my credit card off each month but half my monthly budget is cash and the other is what I spend on my credit card so I feel that technically I am a month behind.
I've decided to use my OD and discard the CC, my OD is free up to £300 and with some budgeting will be gone by March. I'll just keep the CC for emergencies.

Treadmill

It seems to me that spending on your card all month and then paying it all off on pay day is like a cheap payday loan, a portion of your pay is allocated towards debt and unavailable for use if something crops up, meaning you have to use the card again. In my opinion the pitfalls of having a credit card outweigh the positives unless you are a high earner who has the cash to cover the card bill when it comes in rather than relying on wages.

TakingControl

I have 2 credit cards and although I have only just become debt free I will be using them each month and pay them in full each month to start re-building my credit profile.

I move each sum I have spend on the card into a online savings account and when the bill comes through, I pay them off straight away. That way I am never 'behind'. I have been doing this for 3 months now and it works really well

tabby_cats_mum

TakingControl wrote: »

I have 2 credit cards and although I have only just become debt free I will be using them each month and pay them in full each month to start re-building my credit profile.

I move each sum I have spend on the card into a online savings account and when the bill comes through, I pay them off straight away. That way I am never 'behind'. I have been doing this for 3 months now and it works really well

This is what I intend to do as I do lots of online shopping and would rather use my credit card for that but i don't want to go into the month behind scenario again.

sistafromanothermista

On paper i do but i have cut them all up so no :T

4321smokey

BodieGirl wrote: »

smokey - do you mean that you have a pre-loaded credit card? Do you use it solely for the cashback, and where can you use the cashback as i might look into one of those

Hi BodieGirl,
Yes I do have a pre loaded cashback card and yes do soley use it for cash back. I put my own money on it, I get up to 8% cash back per month which can give me up to 25% off my utility bills. To me it is the most effective way of reducing my bills from buying the things I would buy anyway. With energy prices rising this year every penny counts. My gas/elec/phone and mobile usually £110/mth then minus your 25%. Do not look a gift horse in the mouth.

Max_Maxwell

BodieGirl wrote: »

This Jan I owed loads, on Next, credit card etc, looking forward to debt free (although skint) xmas. But it means i will be buying presents that people deserve - last year for example I bought my daughters swim coach a £50 quid bottle of perfume on my next account as I had run out of cash! I still feel sick when I think about it - she's getting a £3 box of chocs this year!

Bodie, I think you know the answer...

Did the debt you had accumulated in January 12 have anything to do with Christmas 2011?

Fast-forward to November 12 and you've cleared your debt. You've done brilliantly - well done.

But now you're debating whether to use a credit card for this Christmas? Hmm, no rocket-scientist here but...

Absolutely do not do this. The buzz is short-lived. It's less than 6 weeks til January 2013. Dejavue is rarely a pleasurable experience.

So, what's the answer?

thatsean

I don't.

I had several, and they were well managed for a time - I suffer with depression, and there were periods where I spent on them just because I could - and then had to deal the fallout.

IMO a line of credit is never a safety net, that's what you get from having your own money that you can get to quickly.

Cut it up and close the account - the sooner you wean yourself of credit, the sooner you realise that life is better without it.

thatsean

4321smokey wrote: »

Hi BodieGirl,
Yes I do have a pre loaded cashback card and yes do soley use it for cash back. I put my own money on it, I get up to 8% cash back per month which can give me up to 25% off my utility bills. To me it is the most effective way of reducing my bills from buying the things I would buy anyway. With energy prices rising this year every penny counts. My gas/elec/phone and mobile usually £110/mth then minus your 25%. Do not look a gift horse in the mouth.

What sort of card is this? IS it a union/employer affinity card, or can anyone get one?