We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Credit Card Statistics
Comments
-
I've not read through that very long piece, but I wonder how they account for 0% BT cards in the stats. They could account for a chunk of those that aren't fully paid monthly1
-
molerat said: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 ?
It seems to be a huge divide, those who care about total cost and those who will spend all the way up to their capacity to fund the repayments.0 -
Martico said:I've not read through that very long piece, but I wonder how they account for 0% BT cards in the stats. They could account for a chunk of those that aren't fully paid monthly0
-
MattMattMattUK said:DullGreyGuy said:CliveOfIndia said:GeoffTF said:and a big majority of credit card users do not settle their bill each month.
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.
i’m tempted to just pay it off but i think I should mind my business0 -
emperormessia said:MattMattMattUK said:DullGreyGuy said:CliveOfIndia said:GeoffTF said:and a big majority of credit card users do not settle their bill each month.
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.
i’m tempted to just pay it off but i think I should mind my businessIt can be a tricky one to rationalise. On the one hand it's eminently sensible to have a savings pot, not least so that you have the money available if the boiler goes kaput or whatever. On the other hand it doesn't make sense to have money available and yet be paying large amounts of interest (far more than your savings are earning) on a credit card debt (assuming it's not on a 0% promotional rate).Arguably it would be better to use the savings to clear the credit card, then rebuild your savings pot by paying the same amount back into each month as you were paying to the credit card. The net result being that you'd end up with even more savings overall, as you're effectively paying yourself the interest you used to be paying to the credit card company.In the interim, whilst your savings are depleted, you could use your credit card to pay for anything desperately urgent that might crop up - although there's a chance that if it's something like a boiler or a new roof, then the plumber/builder/whatever may not accept credit card payments.
0 -
CliveOfIndia said:In the interim, whilst your savings are depleted, you could use your credit card to pay for anything desperately urgent that might crop up - although there's a chance that if it's something like a boiler or a new roof, then the plumber/builder/whatever may not accept credit card payments.It is possible to withdraw cash with most credit cards. There will be a fee for that, and also interest, but he is paying interest anyway. Risking a 3% fee every few years is better than paying out 30% every year. Of course, he will need to do the sums, but not everyone is up to that.0
-
I'm of the opinion of that if I'm going to spend then at least I should get some sort of reward for it, whether it be cashback, airline points etc.
No point in just sticking it on the debit card and then getting a "thank you very much" from your bank.
I always pay off in full every month, so also have the benefit of upto 56 days interest free depending on the card.
0 -
CliveOfIndia said:emperormessia said:MattMattMattUK said:DullGreyGuy said:CliveOfIndia said:GeoffTF said:and a big majority of credit card users do not settle their bill each month.
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.
i’m tempted to just pay it off but i think I should mind my business...On the one hand it's eminently sensible to have a savings pot, not least so that you have the money available if the boiler goes kaput or whatever.
0 -
I realise that not everyone qualifies, but my Barclaycard Rewards card does not appear to make a charge for cash withdrawals in Sterling (or any other currency):The will be interest to pay, of course, if the balance is negative. "Ways to Pay" on my statement does not show cash as an option, but this link suggests that it may be possible to settle the bill with cash at a Barclays branch:0
-
GeoffTF said:Here is an interesting article: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?Well obviously those like me who have a promotional 0% balance aren't going to pay in full every month. That would be daft when I could be earning around 6% interest.Then there are those who might occasionally not pay in full, the "infrequent revolvers".That leaves the a minority (42.6%) who regularly pay interest, the "revolvers/hardcore revolvers".So it seems the majority of credit card users use them sensibly.
1
Categories
- All Categories
- 347K Banking & Borrowing
- 251.5K Reduce Debt & Boost Income
- 451.7K Spending & Discounts
- 239.3K Work, Benefits & Business
- 615.1K Mortgages, Homes & Bills
- 175K Life & Family
- 252.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards