Roger and Edie can have their opinion of not using credit cards, but we who have been paying off in full every month have been using the bank's money all month... debit card use pulls your money out of your account immediately, each time you use it.
However, if and when the credit card banks start the annual fees and instant interest on purchases, it will be bye-bye credit cards and hello debit cards and PayPal for me and just about everyone who has the means and good credit to pay in full every month. I am just hoping that the debit card fees don't also go up!
Kathy - 15 years ago
I also pay my credit cards off monthly. I use them for convenience and rewards points. It's not a great deal of rewards, but it still adds up. However, if they start charging interest I will cut up my credit cards. Will no longer be worth the rewards.
Edie - 15 years ago
I agree with Roger. Why use your credit card if you pay it off every month. Have you heard of debit cards? It's convenient just like a credit card. The good thing about debit cards, money comes right out of your account.
You are a bunch of babies and I'm not a grandma. If you pay off your cards, don't complain. If you carry a balance, that's your business if you want to be charged a fee every month. I switched from credit cards to debit card because it's convenient when you don't have or carry cash.
Kraig - 15 years ago
Banks make easy money on responsible individuals. They make from 2-4% from the retailer on credit card purchases. Also, they do not pay the retailer immediately...they are leveraging their credit when WE the consumer make a purchase.
So, they are not putting money out front when we use our cards. They guarantee the purchase and if we pay our bill in full at the end of the month, they collect all of the money about the same time they are paying the retailer. No cash outlay on their part; meanwhile they collect a fee for the transaction.
If they start charging their best customers additional fees, this may lead these customers to use their cards less and in some cases not at all. This will result in less revenue to the banks.
It is a risky move on their part. Congress did not pass legislation allowing banks to do this. If banks wanted to do this, they already could have. There was no law preventing it. From what I can tell, it is just rumor-mill. If it does turn out that Citibank starts charing me annual fees or interest immediately, I will revert to my bank-card for purchases.
roger - 15 years ago
I don't understand the anger here. If you're paying your entire credit card bill balance every month then why are you even using a credit card? Why don't you just pay for it? Have you heard of debit cards? They've been around for like 20 years. Here's a good idea, instead of getting angry, go outside, have some fun and get some exercise. I hate to be the grandpa here but you're all acting like a bunch of spoiled kids.
roger - 15 years ago
I don't understand the anger here. If you're paying your entire credit card bill balance every month then why are you even using a credit card? Why don't you just pay for it? Have you heard of debit cards? They've been around for like 20 years. Here's a good idea, instead of getting angry, go outside, have some fun and get some exercise. I hate to be the grandpa here but you're all acting like a bunch of spoiled kids.
mac - 15 years ago
I'm with Anne. At the first HINT that they're going to charge me a user fee the damned card goes in the garbage after chopping into little pieces. I'm already subsidizing too many damned Democrat/liberal deadbeats. I'm not going to subsidize any more. As for James Rhoades, he needs to note that things started going to hell only after the election of a Dem congress in 2006. It's no surprise that the trip sped up after electing a spendthrift Dem president. Claiming Dem as one's political party is a sure sign of poor judgment, fiscal irresponsibility, and lack of ability to think rationally. 2010 can't come soon enough.
Anne - 15 years ago
I've paid my bill in full every month for more than fifteen years and use the cards only for convenience. If instant interest charges begin the cards are gone and we're back to cash only at my house. if everyone in my situation does this the consequences for the "credit economy" are enormous. Maybe in the long run it will be good for all of ous but the immedicate results will be disastrous.
ProudAmerican - 15 years ago
Pay off my balance every month, no exceptions. Credit cards are used for convenience, not loans or floating money. Credit cards will no longer be used by my husband or I if we are charged daily interest on the account. Other posters are correct in stating that credit card companies make money on each transaction, regardless of all other factors with your credit card. Obama-nomics stinks. Sure hope the little people are happy. I, for one, am ready for a revolution.
madeleine - 15 years ago
I got ALL the joint credit card debt in the settlement for the divorce my ex-husband inititated. For more than two years I have paid 4 times the minimum payment, on time, and never used the card for any purchases. The minute the divorce was finalized, the credit card company DOUBLED my interest rate. I closed the account, but, of course, still have OUR mutual debt to pay off. I'll never have another credit card other than one tucked in a drawer in case of death in the family or emergency evacuation. I'm debit card all the way now and wish I'd been able to convince my ex-husband of the wisdom of this 20 years ago!
Jim - 15 years ago
My one and only credit card company just sent me a notice that they are going to charge 14.65% plus Prime, currently 3.25%, after July 2, 2009. Last month I paid 10.71% total interest on my balance. Never been late and all that jazz. Of course, the prime will escalate when the Fed sees daylight and inflation rears its ugly head, so I expect to have my interest rate more than double. I can and will retire my balance, tuck the card away (until they cancel it for "failure to use") and go about my merry way. I feel sorry for those who can't. A cash society won't produce jobs, I wonder if barter will?
Midas M - 15 years ago
I'm with Gracie -- If they start charging interest immediately, they can have their cards back and I'll start using a debit card instead.
Here's the thing, though. This isn't just the straight subsidy that the card companies are pretending it is. Even if you pay your balance every month, the card company still makes money from merchant fees. And if enough people stop using cards, the issuers will lose the benefit of volume, and ultimately ubiquitous merchant acceptance. And that could be very good news for PayPal and the issuers of debit cards.
According to Dave Ramsey's excellent book "Total Money Makeover", which I finished reading last night, we shouldn't be using credit cards anyway - instead paying via cash, check, & when necessary via a debit card. He backs this up by not accepting credit card purchases on his website. Anyone who did not answer this poll with paid in full every month should likely visit daveramsey.com
COMom - 15 years ago
About the only time my husband and I use credit cards is for airline/hotel reservations, purchases off the internet, and when I can get clothing at a discount just for using the card. We never carry a balance! They wouldn't dare charge us for using debit cards, or would they? 2010 cannot come soon enough for me. Let's just hope people will wise up!
mndasher - 15 years ago
My VISA card's interest rate is 5.74 percent. I wonder how much it will jump when the new law goes into effect.
GoDaddy - 15 years ago
CC companies make a lot off of transaction fees so don't be surprised if those who generate a lot of transaction fees (use cards often and for larger than normal amounts), but don't carry a balance, get a break on this.
If you only do a few transactions a month and then pay off your bill, you could be a target for increased fees...just my opinion.
booboo1 - 15 years ago
#$%#% them. I pay my bills on time and in full. I'm going back to cash.....
Tom Haight - 15 years ago
Somebody should post the same survey on huffingtonpost.com and see if its readers score notably different. If so, it may explain a lot...
Sharkibark - 15 years ago
On a regular basis, my husband and I pay of our credit card bill every single month.
However - there have been a few times such as this winter with a frozen pipes in the kitchen, prompting an unplanned minor renovation where we carried debt for approximately three months.
It irked us - and we did without a few luxuries - like Friday night Pizza! - until it was paid off.
I hated the interest, but was glad of the temporary ability to buy things we hadn't budgeted for in an emergency.
If the companies start making user fees however... I'd cut up my cards and go back to a cash only world. And we'd likely have had to do our dishes in the laundry tub for a few months.
But that's the way it would have to be. Credit cards still make between 1.5% and 3% of all of my purchases from the retailer - so they're still making money from me when I pay my bill in full.
I will not pay a user fee on top of that.
Steve - 15 years ago
James, what does "pert" of the problem mean?
We can always identify liberals - they believe in solutions, not "trade offs." Yes, we can socialize health care - the trade off is long lines, poor service, and higher costs (through taxes) for young, healthy people.
Yes we can "socialize" credit cards - the trade off is higher costs for people who pay on time.
As for "who has been running the country fro(sic) the last eight years" - statists of both parties who believe in government solutions, not "trade offs" and limited government.
James Rhoades - 15 years ago
Hmmm..liberals..Dems...hmmm..yah..Who was running the country fro the last eight...hmmm...yeah....that would be hmmm let's see....THE REPUBLICAN PARTY>>>YEAH I REMEMBER NOWWWWW>>>. It's too bad people use this forum for complaints. pert of the problem and not a solution...typical right wing, panties in a wad , commie chasing, color bashing, known nothing crap hole. Yeah....we want them to be in change seeing they have done such an excellent job with the world AND the economy....wow> I am impressed.
Gracie - 15 years ago
The day they start charging immediate interest on a purchase is the day they get their damn cards back....in little tiny pieces.
Seething in Georgia - 15 years ago
Is anybody getting angry yet?
How about all the Liberals who keep voting in the SOCIALIST-leaning DEMS?
Had enought yet? Or do you think that maybe this will "fix things" and soon we can get back to normal?
When are you going to learn that you are helping to change this country for the worse?
Roger and Edie can have their opinion of not using credit cards, but we who have been paying off in full every month have been using the bank's money all month... debit card use pulls your money out of your account immediately, each time you use it.
However, if and when the credit card banks start the annual fees and instant interest on purchases, it will be bye-bye credit cards and hello debit cards and PayPal for me and just about everyone who has the means and good credit to pay in full every month. I am just hoping that the debit card fees don't also go up!
I also pay my credit cards off monthly. I use them for convenience and rewards points. It's not a great deal of rewards, but it still adds up. However, if they start charging interest I will cut up my credit cards. Will no longer be worth the rewards.
I agree with Roger. Why use your credit card if you pay it off every month. Have you heard of debit cards? It's convenient just like a credit card. The good thing about debit cards, money comes right out of your account.
You are a bunch of babies and I'm not a grandma. If you pay off your cards, don't complain. If you carry a balance, that's your business if you want to be charged a fee every month. I switched from credit cards to debit card because it's convenient when you don't have or carry cash.
Banks make easy money on responsible individuals. They make from 2-4% from the retailer on credit card purchases. Also, they do not pay the retailer immediately...they are leveraging their credit when WE the consumer make a purchase.
So, they are not putting money out front when we use our cards. They guarantee the purchase and if we pay our bill in full at the end of the month, they collect all of the money about the same time they are paying the retailer. No cash outlay on their part; meanwhile they collect a fee for the transaction.
If they start charging their best customers additional fees, this may lead these customers to use their cards less and in some cases not at all. This will result in less revenue to the banks.
It is a risky move on their part. Congress did not pass legislation allowing banks to do this. If banks wanted to do this, they already could have. There was no law preventing it. From what I can tell, it is just rumor-mill. If it does turn out that Citibank starts charing me annual fees or interest immediately, I will revert to my bank-card for purchases.
I don't understand the anger here. If you're paying your entire credit card bill balance every month then why are you even using a credit card? Why don't you just pay for it? Have you heard of debit cards? They've been around for like 20 years. Here's a good idea, instead of getting angry, go outside, have some fun and get some exercise. I hate to be the grandpa here but you're all acting like a bunch of spoiled kids.
I don't understand the anger here. If you're paying your entire credit card bill balance every month then why are you even using a credit card? Why don't you just pay for it? Have you heard of debit cards? They've been around for like 20 years. Here's a good idea, instead of getting angry, go outside, have some fun and get some exercise. I hate to be the grandpa here but you're all acting like a bunch of spoiled kids.
I'm with Anne. At the first HINT that they're going to charge me a user fee the damned card goes in the garbage after chopping into little pieces. I'm already subsidizing too many damned Democrat/liberal deadbeats. I'm not going to subsidize any more. As for James Rhoades, he needs to note that things started going to hell only after the election of a Dem congress in 2006. It's no surprise that the trip sped up after electing a spendthrift Dem president. Claiming Dem as one's political party is a sure sign of poor judgment, fiscal irresponsibility, and lack of ability to think rationally. 2010 can't come soon enough.
I've paid my bill in full every month for more than fifteen years and use the cards only for convenience. If instant interest charges begin the cards are gone and we're back to cash only at my house. if everyone in my situation does this the consequences for the "credit economy" are enormous. Maybe in the long run it will be good for all of ous but the immedicate results will be disastrous.
Pay off my balance every month, no exceptions. Credit cards are used for convenience, not loans or floating money. Credit cards will no longer be used by my husband or I if we are charged daily interest on the account. Other posters are correct in stating that credit card companies make money on each transaction, regardless of all other factors with your credit card. Obama-nomics stinks. Sure hope the little people are happy. I, for one, am ready for a revolution.
I got ALL the joint credit card debt in the settlement for the divorce my ex-husband inititated. For more than two years I have paid 4 times the minimum payment, on time, and never used the card for any purchases. The minute the divorce was finalized, the credit card company DOUBLED my interest rate. I closed the account, but, of course, still have OUR mutual debt to pay off. I'll never have another credit card other than one tucked in a drawer in case of death in the family or emergency evacuation. I'm debit card all the way now and wish I'd been able to convince my ex-husband of the wisdom of this 20 years ago!
My one and only credit card company just sent me a notice that they are going to charge 14.65% plus Prime, currently 3.25%, after July 2, 2009. Last month I paid 10.71% total interest on my balance. Never been late and all that jazz. Of course, the prime will escalate when the Fed sees daylight and inflation rears its ugly head, so I expect to have my interest rate more than double. I can and will retire my balance, tuck the card away (until they cancel it for "failure to use") and go about my merry way. I feel sorry for those who can't. A cash society won't produce jobs, I wonder if barter will?
I'm with Gracie -- If they start charging interest immediately, they can have their cards back and I'll start using a debit card instead.
Here's the thing, though. This isn't just the straight subsidy that the card companies are pretending it is. Even if you pay your balance every month, the card company still makes money from merchant fees. And if enough people stop using cards, the issuers will lose the benefit of volume, and ultimately ubiquitous merchant acceptance. And that could be very good news for PayPal and the issuers of debit cards.
According to Dave Ramsey's excellent book "Total Money Makeover", which I finished reading last night, we shouldn't be using credit cards anyway - instead paying via cash, check, & when necessary via a debit card. He backs this up by not accepting credit card purchases on his website. Anyone who did not answer this poll with paid in full every month should likely visit daveramsey.com
About the only time my husband and I use credit cards is for airline/hotel reservations, purchases off the internet, and when I can get clothing at a discount just for using the card. We never carry a balance! They wouldn't dare charge us for using debit cards, or would they? 2010 cannot come soon enough for me. Let's just hope people will wise up!
My VISA card's interest rate is 5.74 percent. I wonder how much it will jump when the new law goes into effect.
CC companies make a lot off of transaction fees so don't be surprised if those who generate a lot of transaction fees (use cards often and for larger than normal amounts), but don't carry a balance, get a break on this.
If you only do a few transactions a month and then pay off your bill, you could be a target for increased fees...just my opinion.
#$%#% them. I pay my bills on time and in full. I'm going back to cash.....
Somebody should post the same survey on huffingtonpost.com and see if its readers score notably different. If so, it may explain a lot...
On a regular basis, my husband and I pay of our credit card bill every single month.
However - there have been a few times such as this winter with a frozen pipes in the kitchen, prompting an unplanned minor renovation where we carried debt for approximately three months.
It irked us - and we did without a few luxuries - like Friday night Pizza! - until it was paid off.
I hated the interest, but was glad of the temporary ability to buy things we hadn't budgeted for in an emergency.
If the companies start making user fees however... I'd cut up my cards and go back to a cash only world. And we'd likely have had to do our dishes in the laundry tub for a few months.
But that's the way it would have to be. Credit cards still make between 1.5% and 3% of all of my purchases from the retailer - so they're still making money from me when I pay my bill in full.
I will not pay a user fee on top of that.
James, what does "pert" of the problem mean?
We can always identify liberals - they believe in solutions, not "trade offs." Yes, we can socialize health care - the trade off is long lines, poor service, and higher costs (through taxes) for young, healthy people.
Yes we can "socialize" credit cards - the trade off is higher costs for people who pay on time.
As for "who has been running the country fro(sic) the last eight years" - statists of both parties who believe in government solutions, not "trade offs" and limited government.
Hmmm..liberals..Dems...hmmm..yah..Who was running the country fro the last eight...hmmm...yeah....that would be hmmm let's see....THE REPUBLICAN PARTY>>>YEAH I REMEMBER NOWWWWW>>>. It's too bad people use this forum for complaints. pert of the problem and not a solution...typical right wing, panties in a wad , commie chasing, color bashing, known nothing crap hole. Yeah....we want them to be in change seeing they have done such an excellent job with the world AND the economy....wow> I am impressed.
The day they start charging immediate interest on a purchase is the day they get their damn cards back....in little tiny pieces.
Is anybody getting angry yet?
How about all the Liberals who keep voting in the SOCIALIST-leaning DEMS?
Had enought yet? Or do you think that maybe this will "fix things" and soon we can get back to normal?
When are you going to learn that you are helping to change this country for the worse?