Am I being silly? ditching CC?

Mimi_Arc_en_ciel

I have a CC which i use daily and pay back in full each month - never late paying.

My "normal" bank account sometimes drops to around £100 but I am also putting away money into a savings account for me, and my 2 children.

Now, I dont struggle to pay my CC back but it is scaring me the amount i am getting into "debt" each month and that my "normal" bank account looks poor (I have a little bit saved, but i really really dont want to touch this as its v. minimal)

I'm wondering whether to jack in my CC but im not sure where to start - I cant just stop using it, because with my bank dropping to around £100 a month i wont be able to live off that without using my credit card (Does that even make sense?!) as mentioned ^^ I dont want to comprimise / dip into any savings.

I do get "points" from my CC, and as i say, I am not struggling to pay it off, its just scaring me

Any tips?

Thanks

eskbanker

Mimi_Arc_en_ciel wrote: »

I cant just stop using it, because with my bank dropping to around £100 a month i wont be able to live off that without using my credit card (Does that even make sense?!)

No, it doesn't make sense to me! If you're paying your CC off in full every month (without depleting any other reserves) then you're living within your means, so whether you spend on a CC or other means doesn't make any difference, except for the benefits of paying by CC (not just points but a bit of time to pay it off, plus Section 75 protection, advantages for credit history, etc). Personally I'd carry on the way you are!

Mimi_Arc_en_ciel

eskbanker wrote: »

No, it doesn't make sense to me! If you're paying your CC off in full every month (without depleting any other reserves) then you're living within your means, so whether you spend on a CC or other means doesn't make any difference, except for the benefits of paying by CC (not just points but a bit of time to pay it off, plus Section 75 protection, advantages for credit history, etc). Personally I'd carry on the way you are!

lol sorry i just reread what i wrote.... :rotfl:

Yes, for all purposes I am living within my means, and i know that no matter what I will still spend the same daily amount (Food shop could probably come down mind!)

It just scares me to see the CC figure. This month it was just over £1000 :eek:

I've started saving etc so that IF anything should happen I can support myself for a while but thats still a while off yet

I think im just panicking about the "debt" side of things (Ex got himself into debt of £34k and I ended up paying a lot towards it as we were doing the "whats yours is mine" thing)

~Beanie~

It makes sense to me. I used to do the same, pay for all groceries on my credit card and then pay it off every pay day. When I stopped using my CC, I couldn't afford to pay it off on payday and then pay for groceries a well cus all my money had gone paying off my card!!

What I had to do was not pay it off in full, but pay a smaller amount each month untul it was gone. I had to pay a little bit of interest but now don't owe on my CC.

Mimi_Arc_en_ciel

I'm torn between what to do!

I know im living within my means and gaining rewards but equally, i know i will be stuffed if i tried to stop using the credit card unless i dipped into my savings

planteria

i would just carry on doing exactly as you are Mimi
you are using a credit card wisely and effectively
just ensure that you are only buying things that you really need, and that you are always able to clear it in full (ideally by Direct Debit).
and relax:)

vns

Mimi_Arc_en_ciel wrote: »

I'm torn between what to do!

I know im living within my means and gaining rewards but equally, i know i will be stuffed if i tried to stop using the credit card unless i dipped into my savings

Have you considered getting a 0pc spending card?

Use the 0pc period (usually 12 months or so) to keep your money in your current account for a rainy day, ensuring that you do earmark it as CC debt payment rather than seeing at thinking you're loaded and blow it on a treat for your kids...

Just a suggestion...;)

B19JON

I have thought about this before, Some months I spend well in excess of £1600. When I look back at my card statement & go through what i've spent - I would've spent the same amount on my debit card anyway!

Long as it's being paid off on time & not treating yourself when you know you shouldn't / can't then there's no problem really...

CLAPTON

Mimi_Arc_en_ciel wrote: »

I'm torn between what to do!

I know im living within my means and gaining rewards but equally, i know i will be stuffed if i tried to stop using the credit card unless i dipped into my savings

in your circumstance this makes no sense

unless you are getting benefits from your CC spending (i.e. cashback, points etc) then clear the CC with your savings and use your debit card instead

the savings that equal your CC aren't 'real' as they have to be paid off at the end when due.

however, I would still use the CC a little (and pay in full each month) as this will maintain/improve your credit records


what's right for one person isn't right for everyone else

PennyForThem_2

I see where you are coming from OP.

1. You spend on cc
2. You pay off whole amount pay day and leave 100 in account after cc and utilities etc have been paid
3. You cannot afford to ditch the cc because you don't have enough in current account to start paying for food etc by debit card or cash without going overdrawn
4. If you phase in cash/dc it will take ages

So far you are not at crisis point - go to the Old Style Money Saving Forum or the Food Saving one and start reducing your spending - not easy but a start - should make moving to debit card/cash and saving faster.

hyubh

~Beanie~ wrote: »

What I had to do was not pay it off in full, but pay a smaller amount each month untul it was gone. I had to pay a little bit of interest but now don't owe on my CC.

Why would you pay the bank for the privilege of taking away something useful to you? It's not a sin (or even imprudent) to make use of short-term credit.