Am I being silly? ditching CC?

planteria

Lazyloki wrote: »

I for one use credit card for almost every single transaction I make each month. My current account has a couple of DDs but other than that it's just pay going in and CC bill going out.

make that two. it's good practice. but even better to have 2 or 3 times your limit in an easy access savings account too.

tomr89

planteria wrote: »

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:)

Surely the wisest way to use a credit card is to pay the statement in full with your previous months wages? Using your wages to pay of the previous month's spending leaves you with a months worth of spending's debt.

chickenboy

Regardless of whether we think you are doing the right or wrong thing, you still sound like you are worried - which cannot be good for you!

You say you put a lot into savings accounts, which is why your current account balance is low - have you thought about the Santander 123 account (which pays 3% on balances between 3-20K, plus cashback on some regular direct debits). This may even beat your savings rate. This would allow you to keep more in your current account and help you sleep better!

The other thing is of course to tighten your belt and not spend so much (if you can).

planteria

chickenboy wrote: »

Regardless of whether we think you are doing the right or wrong thing, you still sound like you are worried - which cannot be good for you!

You say you put a lot into savings accounts, which is why your current account balance is low - have you thought about the Santander 123 account (which pays 3% on balances between 3-20K, plus cashback on some regular direct debits). This may even beat your savings rate. This would allow you to keep more in your current account and help you sleep better!

The other thing is of course to tighten your belt and not spend so much (if you can).

good advice. to me, it would seem a shame to stop using a credit card for your spending, as it is prudent to do so. but if you would be happier with no card debt at all, and to spend with a debit card, then that is the way to go.

Sagz_2

I do the same as OP every month, spend on card and pay off in full when my wages hit my bank account. Doing this has just earned me £154 - I love my cashback credit card

callum9999

While a few people have hinted at it, this makes no sense whatsoever to me.

You are not specifically wanting to reduce your spending, you merely want to shift your spending from the credit card to your debit card because you dislike looking at a big number on your credit card statement? A number which would merely move onto your bank account statement if you stopped using the credit card...

If you want to build up more resilience (which you should - as others have said you aren't in trouble or anything, but you never know what may happen in the future) then do all the normal money saving things. Unless there are payment surcharges for credit cards, using your debit card instead of a points-earning credit card (that you pay off in full) makes no sense at all and will in fact make your finances marginally worse.