What did you do before debit & credit cards?

Bargainloverbec

I like the convenience of using my debit card (don't touch the credit card anymore) but I agree the act of handing over hard cash does make you think more about your purchases.

The system that works for me is that I have 2 current accounts. My salary goes into one and that's where all my direct debits and bills come out from. I then transfer £250 a month into the other one and that's my spending money for the month. There is deliberately no overdraft facility on that account, so when it's gone, it's gone. I keep a running total of my spending throughout the month so I know when I'm getting close to my limit. If I run out of money it has to come out of my savings so it's a good incentive for me not to go mad; I would rather spend my savings on a holiday!

ManAtHome

Been using credit cards for around 20 years with no problems, and 'switch'ed (groan) to debit cards from cheques many years ago. Very useful for relatively large purchases, but I've always avoided using them for the day to day stuff - too easy to get nasty surprise at the end of the month. I'm amazed at how many people do use cards for the odd couple of quid, must be almost impossible to track how much you're spending.

As mentioned earlier in this thread, going back home to do some research instead of impulse buying is a good idea. If it's still a good deal/what you always wanted after a day or two, may be actually worth buying.

ashmit

some people who use credit cards may end up in debt.

Some people will, some people won't. Thanks Stompa.

I'm amazed at how many people do use cards for the odd couple of quid, must be almost impossible to track how much you're spending.

I use my cc for everything I can, large transactions or small. I check my bank account and cc every day online, and I have a spreadsheet where I put in all transactions that haven't gone out yet so I can keep track. I can tell you every single day how much money I have to spend

squeaky

I think it all boils down to taking charge of what you spend and using some self discipline.

To a large degree it doesn't really matter what you use to pay for things with - it's how you use them and how you keep track of things (or not, as is usually the case for people in trouble).

I have to admit that my situation changed for the better when I dumped the credit card in favour of a debit card - used that for bigger purchases - and a cash "allowance" for everything else. Largely because I found it easier to keep track of what where when and how I was spending my money.

And of course - getting into the habit of asking the various "Do I really need this?" questions. But that really brings me full circle to my first sentence here because it's part and parcel of financial self discipline.

Stompa

I use my cc for everything I can, large transactions or small.

Yes, me too. I'd much prefer to use cards 100% of the time, much more convenient than having to use cash.

I have a spreadsheet where I put in all transactions that haven't gone out yet so I can keep track. I can tell you every single day how much money I have to spend

Oh dear, there's someone else who does that apart from me! What a sad pair we are ;-)

Stompa

rchddap1

There's plenty of us know know how much we can spend.....ie, me too I've done really well this month, and I desired I could have a good splurge this weekend. But I shall resist and shall limit myself to that new bathroom mirror.

ManAtHome

Stompa wrote:

Yes, me too. I'd much prefer to use cards 100% of the time, much more convenient than having to use cash.

LOL - blimey, hope I never get behind you and ashmit buying your Mars bars...

margaretclare

What did I do before.....goodness knows. Wrote cheques for everything, I suppose. And went into the bank to get cash via a cheque made out to 'cash' every time I needed cash.

Actually, not quite like that. Because my late husband was on benefits from 1976 up to his death in 1992 and he had either girocheques or benefit books to cash. He existed in the world of cash - food shopping mainly - and I did everything else via direct debits or cheques. From 1992 onwards I used to get widow's benefit paid into the bank and I had debit cards, then credit card as well.

Now in a second marriage, I still use a credit card for my personal spending but only as far as I can pay it off every month. Credit cards are extremely useful, but like the old saying about fire: 'good servants but bad masters'.

Aunty Margaret

ashmit

Stompa wrote:

Oh dear, there's someone else who does that apart from me! What a sad pair we are ;-)

Oh thank goodness. I did think I was the saddest person alive. It's nice to know there are others

The rare time when I make a mistake I'm devastated. Once I put in +£40 for a transaction due to go out instead of -£40. I couldn't work out why I seemed to be £80 up. I put the extra in my savings after a day or two and was devastated a week or so later when I worked out where I'd gone wrong. I couldn't bear to make myself take the whole lot back out of my savings so I took half back out and made the rest up with spending as little as possible that month.

And don't worry ManAtHome, I don't often make small purchases, so you shouldn't get stuck behind me *TOO* often

Loadsabob

I agree that the only way forward to debt-free living is a bit of self-discipline. I can't imagine having to freeze credit cards in water to stop myself from spending them. No offence to anyone who does, but really - can you not just say "No" to yourselves?? Can people really not resist the pull of spending any more? That's a really sad state of affairs.

I don't find it difficult at all to tell myself I can't have what I can't afford. I think my student days equipped me well for budgeting. My only incentive not to spend money I don't have is that it isn't mine, so therefore I wouldn't feel good about the purchases I made. If I want to buy more, I need to earn more, end of story. I wish it were that simple for everyone, as I know some people really struggle. I feel a lot of beligerance towards our spend-culture, so I like to resist that where I can anyway, which makes it a little easier for me than for people who have to have the latest fashions and keep up with the Joneses.

Sorry for being a bit high and mighty, but really, a little bit of common sense and self-discipline isn't too hard to find in ourselves, surely????