Credit Card Statistics

grumbler

MorningcoffeeIV said:

grumbler said:

GeoffTF said:

SiliconChip said:

GeoffTF said:

A big majority of card users pay by debit card... Why is that?

Two reasons for me: one is that for small transactions with small businesses it's cheaper for them if I use a debit card, the other is that for most transactions under £100 I now pay with my Chase card for the 1% cashback. In both cases there's little benefit to me to using a credit card (although I still do use all of my credit cards at least once every 2 months to keep them active and to ensure that the DD to pay them off is still working correctly)

The Chase 1% cashback is an introductory offer

SiliconChip said:

GeoffTF said:

A big majority of card users pay by debit card... Why is that?

for most transactions under £100 I now pay with my Chase card for the 1% cashback.

What's special about £100? Is this anything that I don't know?

Yes,  it seems there is.

£100 is the minimum for s75.

Ah... This I do know, but unlike many people I don't overestimate s75 protection when chargeback is no worse in most cases.

th081

GeoffTF said:

Here is an interesting article:

https://www.money.co.uk/credit-cards/credit-card-statistics

I make my day to day payments by credit card, and pay it off in full every month by Direct Debit. Interest free credit and a single bill each month. That is not what most people do. A big majority of card users pay by debit card, and a big majority of credit card users do not settle their bill each month. Why is that?

A big majority of credit card users do not settle their bill each month. Why is that? -

becuase for one reason or another they cannot afford to do so.

A big majority of card users pay by debit card -

 becuase they are sensible and only buy things when they have the money to do so and do not want to fall for the credit card companies tricks to get you into debt and fleece you for interest 

grumbler

th081 said:

GeoffTF said:

Here is an interesting article:

https://www.money.co.uk/credit-cards/credit-card-statistics

I make my day to day payments by credit card, and pay it off in full every month by Direct Debit. Interest free credit and a single bill each month. That is not what most people do. A big majority of card users pay by debit card, and a big majority of credit card users do not settle their bill each month. Why is that?

...

A big majority of card users pay by debit card -

 becuase they are sensible and only buy things when they have the money to do so and do not want to fall for the credit card companies tricks to get you into debt and fleece you for interest 

I have, say, £100K of easy-accass savings (i.e. I "have money to do so")  and I always use only credit cards (switched to Chase and Barclays debit cards ATM because of 1% and 5% cashback accordingly). Am I not "sensible"?

th081

grumbler said:

th081 said:

GeoffTF said:

Here is an interesting article:

https://www.money.co.uk/credit-cards/credit-card-statistics

I make my day to day payments by credit card, and pay it off in full every month by Direct Debit. Interest free credit and a single bill each month. That is not what most people do. A big majority of card users pay by debit card, and a big majority of credit card users do not settle their bill each month. Why is that?

...

A big majority of card users pay by debit card -

 becuase they are sensible and only buy things when they have the money to do so and do not want to fall for the credit card companies tricks to get you into debt and fleece you for interest 

I have, say, £100K of easy-accass savings (i.e. I "have money to do so")  and I always use only credit cards (switched to Chase and Barclays debit cards ATM because of 1% and 5% cashback accordingly). Am I not "sensible"?

Grumbler - You are very sensible, I would wager you are also not the normal average person as seen by the 130 million a DAY in interest paid to credit card companies. You do well from credit cards subsidised by the majority 

Growingold

grumbler said:

» show previous quotes

I have, say, £100K of easy-accass savings (i.e. I "have money to do so")  and I always use only credit cards (switched to Chase and Barclays debit cards ATM because of 1% and 5% cashback accordingly). Am I not "sensible"?



Which is the 5% cashback with Barclys DC please?

grumbler

Growingold said:

Which is the 5% cashback with Barclys DC please?

You are a little bit late...

>> Barclays Google pay cashback promotion

Not sure what the T&C  say, but for me only in-store Google Wallet payments work, online Google Pay ones don't.

Growingold

grumbler said:

Growingold said:

Which is the 5% cashback with Barclys DC please?

You are a little bit late...

>> Barclays Google pay cashback promotion

Not sure what the T&C  say, but for me only in-store Google Wallet payments work, online Google Pay ones don't.

Thanks for replying.  I remember seeing something about it now .

strawb_shortcake

A lady I know spends entirely on her credit card for every day spending. Her rationale was that it freed up her current account for anything unplanned or emergencies, to be honest I don't really get that especially as she's far from being on the bread line.

I spend using a debit card or cash. I have an emergency fund and credit card as back up if needed. I do use my credit card for some purchases I.e. specific cash back offers or certain purchases. 
I'm much more content knowing I don't owe anything or anyone except the mortgage 

MattMattMattUK

DullGreyGuy said:

CliveOfIndia said:

GeoffTF said:

 and a big majority of credit card users do not settle their bill each month.

Because they're either living beyond their means, or they're labouring under the misapprehension that paying interest makes them more attractive to lenders.

A little bit harsh, some will be those that have had one off incidents (lost job, boiler died, close family member died) that have pushed them into debt and they've not managed to recover from it yet but aren't getting further into debt. It's not just those that are trying to live a champagne lifestyle on lemonade income. 

Whilst I agree that there are those that carry credit card debt in the short term due to misfortune, the vast majority of people I know where the conversation has come up fall into either those who pay in full every month, or those who carry credit card debt due to lifestyle choices. 

The lifestylers could all clear their debts in 1-2 years if they got their spending under control, but generally only see debts as a cost in terms of the monthly payments, rather than a waste because of the £200-500+ that they pay in interest every month. It is a really odd way of thinking but in general it seems that they would rather enjoy the highest possible spending in the short term, even if that has huge negative consequences in the medium and long term. 

molerat

The lifestylers could all clear their debts in 1-2 years if they got their spending under control, but generally only see debts as a cost in terms of the monthly payments, rather than a waste because of the £200-500+ that they pay in interest every month. It is a really odd way of thinking but in general it seems that they would rather enjoy the highest possible spending in the short term, even if that has huge negative consequences in the medium and long term. 

That is the way we are being conditioned now.  When was the last time the adverts for a car mentioned the actual price rather than £xxx per month ?