Credit card or debit card (or cash)

jimjames

RG2015 said:

Thanks for your replies. I realise that I was a bit insensitive not to consider those for whom credit cards either unavailable or presented unwelcome temptation.

I've also seen a lot of posts from people who have bought fuel and had a hold put on a sum of money from their account when paying by debit card. That may happen on credit cards too but it's not something I ever notice as I'm not close to my limit. Definite advantage in paying by CC not debit card

Rob5342

I always pay by debit card. I used a credit card for 10 years and was very strict about my spending, but then I had a drop in income and got into a big mess with huge credit card balances. I'm in a DMP now and don't have any credit cards, but I'll be very wary of getting one again after it ends.

Ebe_Scrooge

I use a credit card for pretty much everything these days, mainly just for the convenience, though the points I earn are a nice little bonus.  Plus, of course, the S75 protection where applicable.  But like the OP, I only use it for stuff I need/can afford, and always repay in full every month.

I do use cash, occasionally a debit card when buying something from the local village shop.  Purely because it's a small family-run shop and I don't want to burden them with the credit card fees (even though they do accept credit cards).  I know there's a fee for debit cards, but it's lower than a credit card.  Support the hard-working local small businesses and all that.

Indout96

Chase debit card (or actually Apple pay) for everything. 
Money is kept in one of the savings pots earning 2.75% then transferred to spending account just before use so then gets the 1% cash back as well. I normally keep around £50 in the spending acc so in effect getting 3.75% interest on my money.
I have 2 credit cards, HSBC not used for a couple of years but attached to an account and Virgin travel card which I have not used since moving to Chase as the conversion rates / no charges on Chase are better.

k_man

Indout96 said:

Chase debit card (or actually Apple pay) for everything. 
Money is kept in one of the savings pots earning 2.75% then transferred to spending account just before use so then gets the 1% cash back as well. I normally keep around £50 in the spending acc so in effect getting 3.75% interest on my money.
I have 2 credit cards, HSBC not used for a couple of years but attached to an account and Virgin travel card which I have not used since moving to Chase as the conversion rates / no charges on Chase are better.

Do you mean 2.7% for Chase savings?
(Not that is makes much difference to your method)

RG2015

Indout96 said:

Chase debit card (or actually Apple pay) for everything. 
Money is kept in one of the savings pots earning 2.75% then transferred to spending account just before use so then gets the 1% cash back as well. I normally keep around £50 in the spending acc so in effect getting 3.75% interest on my money.
I have 2 credit cards, HSBC not used for a couple of years but attached to an account and Virgin travel card which I have not used since moving to Chase as the conversion rates / no charges on Chase are better.

It isn't 1.00% cashback + 2.75% interest = 3.75% interest though.

The 1.00% cashback is on debit card payments and the 2.75% is an annual interest percentage paid on an amount held in a savings account.

That said, the Chase debit card 1.00% cashback is a much better deal than any credit card spending. It is a shame that it only runs for 1 year though.

Band7

RG2015 said:

That said, the Chase debit card 1.00% cashback is a much better deal than any credit card spending.  

People who use 0% credit cards might disagree.

WillPS

RG2015 said:

That said, the Chase debit card 1.00% cashback is a much better deal than any credit card spending. It is a shame that it only runs for 1 year though.

It's a great deal, but in the grand scheme of things it hasn't convinced me to move away from my credit cards. I haven't done the maths but I'm fairly confident that I'm getting more than 1% on average, albeit with ~£60 in annual fees. I guess that's mostly boosted by a Tesco credit card which is no longer on the market tho.

CuriousGirl

I pay for everything with a credit card/credit cards. At the moment mostly using a card that gives me 0% on purchases for 18 months, I only pay a minimum payment (plus a few pounds of top) and stooze the other cash. All spare cash including our savings in held in different savings accounts and I transfer money from an instant access (pays 3%) to  my current accounts to pay our bills. Majority of the family bills coming out of my accounts so it suits me perfectly. 

With stoozing  I am currently incurring quite a substantial debt but it does not bother me at all, my remortgage is in November 2025, I can cover the credit card debt tomorrow with no problem. I would not advise anyone to do the same as it requires a great amount of discipline and  a good time management. But  I work in finance anyway and I love spreadsheets. I see credit cards as a very helpful and useful tool of running personal finance but I admit it is not everyone. 

jon81uk

I only use cash in the barbershop as they don't take cards. Not used cash elsewhere in the UK for a very very long time.