Credit Card Debt

[Alan]

Alan, I had to do that for my brother when our father died 28 years ago--pre-ATM-card-days, only a credit card could buy his overseas ticket.

Now that you mention it, that was 1995 for my emergency trip so you're right, it was pre-Debit card Visa/Mastercard so I don't know that I would many other options than a credit card.

 

[calmloki]

Or, you can ask the merchant - "What can you do for cash?" - often the answer is a few % off.

ta,
mews

Tried that several times - usually the answer is no, so they get the card instead of cash and i get a point back and they pay more and get less profit. Doesn't make sense, but there you go.

 

[mews]

Ron, here in NYC, I don't have a car - but I've done it with other stuff, and sometimes I get a smart merchant ... and the smart merchant gets a happy customer.

ta,
mew

 

[Alan]

Purchasing a vehicle with a Credit Card. Hmmmm.

Still pay it off end of month and get 1% cash back.

 

[Moemg]

I had to do just that a few years ago. Dec 26th at 8:30am I got a call from my sister in England to say my mother had died. I called around the airlines and got a flight that day - overnight to London and I was at my Dad's house the next afternoon.

I had to do that when my Son was critically ill and even if I had the time to transfer money to my checking acoount I did not have the sanity to do it . Next time I'd like to whip that card out for something fun not painful.

 

[freebird5825]

I use a 4-3-2-1 cashback card for everything I buy.
4% gas and auto related up to $250/mo
3% entertainment up to $150/mo
2% groceries, restaurants up to $750/mo
0.25% everything else up to $10K annually, then 1%
We have a joint credit card, and I hold a single credit card of the same type as backup. When gas prices were over $4 per gallon, we used both credit cards to get the 4% on all gas purchases.
I always pay it off in synch with our biweekly paydays.

 

[73ss454]

If you go to a car dealer that allows you to put the whole purchase price of the car on a credit card I suggest you take another look at the price of the car. The dealer pays the credit card company a vig for the purchase. If it's 3% of the total you paid too much for the car.

 

[Dreamer]

I did not know that you could rent a car or a hotel room with a debit card either. We put everything that we can on our Discover card for the cash back. A car dealer let us put $12000.00 of the purchase price of our new vehicle, but not the full amount. We live close to the PA border and bought the vehicle in PA. My DH went to the dealer in our state, WV, and he could not sell us the vehicle at the same price in PA. Of course, we paid the CC off as soon as the bill came. I have read that people spend less when they have to actually part with the cash at the time of purchase. I am usually pretty frugal, but I wonder if it would work with DH who seems to like spending it more. I keep thinking that we should try an experiment of using cash for a few months, but it seems so much harder dealing with cash and I also hate to give up the rewards.

 

[bssc]

If you go to a car dealer that allows you to put the whole purchase price of the car on a credit card I suggest you take another look at the price of the car. The dealer pays the credit card company a vig for the purchase. If it's 3% of the total you paid too much for the car.

Actually, it was a friend and I think that I paid too little. It was Blue Book wholesale. Then he charged me $300 to drive it from Seattle to Phoenix which included the cost of a ticket up there, gas down and a hotel room somewhere in between.

 

[Ronstar]

I run as much as possible through my credit card and pay it off every month. I also wait until around the 24th of the month to make any major purchases because the break in the billing cycle essentially gives me 2 months use if the CC company's money. Also use it for the airline miles.

 

[73ss454]

Actually, it was a friend and I think that I paid too little. It was Blue Book wholesale. Then he charged me $300 to drive it from Seattle to Phoenix which included the cost of a ticket up there, gas down and a hotel room somewhere in between.

Since dealers are not "not for porfit establishments" you either paid too much or the guy was profit loss harvesting.

If a dealer averages $1000 profit on a vehicle and let's say the cost was 30K and the credit car company charged the dealer 3%. Now let's say that your friend at the dealer made only $500 on you. Do you think he sold you the car to loose $400? The math doesn't work.

 

[Goonie]

Me too, I always love those commercials when they decide to fly away at the spur of the moment and whip out their visa.

I had to do that back in the 90's. A friend and I flew out to L.A., and were planning on driving back to IL in a rental truck with a bunch of his tools and stuff. Plans changed while we were there, and I needed a plane ticket to get home. Whipped out the MC, and got a flight home the next day.

 

[SecondCor521]

I can't vote in this poll.

I am currently carrying balances on 10 cards, but I am also not paying interest on any of them. They are all 0% teaser offers that I plan to pay off when the balances come due (generally in March through May of next year).

2Cor521

 

[Walt34]

I haven't paid a dime in cc interest since August of 1983. Wife #1 left then.

Wife #2 is an accountant. Her: "When it comes to interest payments, it is better to receive than to give."

 

[bssc]

I can't vote in this poll.

I am currently carrying balances on 10 cards, but I am also not paying interest on any of them. They are all 0% teaser offers that I plan to pay off when the balances come due (generally in March through May of next year).

2Cor521

FW AOR! Just paid off mine but have not gotten any new offers.

 

[bssc]

Since dealers are not "not for porfit establishments" you either paid too much or the guy was profit loss harvesting.

If a dealer averages $1000 profit on a vehicle and let's say the cost was 30K and the credit car company charged the dealer 3%. Now let's say that your friend at the dealer made only $500 on you. Do you think he sold you the car to loose $400? The math doesn't work.

I think that he lost money since he is a friend. This is why you never do business with friends. I cannot figure out how he made any money off the deal.

 

[SteveL]

For those who use a debit MC or Visa to rent cars...if you have a fender bender, unless you have purchased the collision damage waiver (CDW) you will find the $3000 or larger debit to cover the damage, and loss of use a bit much to take. This will occur, even if your debit card has the two week car rental benefit, and even if you have your own car insurance.

At least with the credit card, you have a couple of weeks to contact your insurance company, the credit card car rental insurance, to convince the car rental agency to drop the $3000 charge. Sure, you will get that $3000 debit back someday, but think of the potential checks bouncing.....

 

[martyb]

We usta use CC's, but since we paid them off, we don't anymore. It's just easier to stay out of trouble if we don't have them in our wallet or purse. If I can't get it with my debit card I don't need it.

 

[Frugality_of_Apathy]

We usta use CC's, but since we paid them off, we don't anymore. It's just easier to stay out of trouble if we don't have them in our wallet or purse. If I can't get it with my debit card I don't need it.

I just have my credit card account set up to automatically pay off the entire balance when it is due. No way to get into trouble.

 

[RonBoyd]

I just have my credit card account set up to automatically pay off the entire balance when it is due. No way to get into trouble.

I like the sound of this. Is this something you set with the CC company? If so, which company? or is it some arrangement you have with your bank? or 3rd party?

 

[Frugality_of_Apathy]

I like the sound of this. Is this something you set with the CC company? If so, which company? or is it some arrangement you have with your bank? or 3rd party?

It's available on most credit card web sites. I have it setup with Wamu(now chase) and Bank of America( who would apparently jack my interest rate up to 29% with any provocation).

 

[kyounge1956]

I paid off my balance in the late 80's or early 90's and haven't had a credit card since then, except that I opened a Sears charge account to replace my washer and dryer a couple of years ago because there was a discount on the laundry machines with a new account. I immediately paid the full amount and closed the account. I probably wouldn't even do that again, because I found out later on that they didn't close the account when I told them to.

I now have a Visa debit card from one bank and a Master Card debit card from another, but early on in my credit-card-free life, there were no logo debit cards, only ATM cards. Back then, it was a bit of a hassle to be without a credit card, but I think nowadays a debit card can be used anywhere the same-logo credit card is accepted.

 

[NW-Bound]

Same as the majority in this forum, I do not "typically" but "always" pay off the CC every month. We use the Costco Amex card as often as we can, which gives back several hundred dollars a year.

The last time we carried any balance was probably nearly three decades ago, right after we got married.

 

[clifp]

I do ask for a cash discount for large purchase, every great once in a while I'll get a few percent. Of course for services and a such, I often get 10%+ off if the payment is made in large bills. I am not sure but I imagine it is conceivable that these transactions are not reported with 100% accuracy to various tax departments.

Speaking of not reporting things. Make sure that no potential advertisers see the results of this survey, it will horrified them. For instance, I am guessing the guys that buy your annuity for cash, (a site advertiser) don't get a lot of business from us dead beat credit card user.

 

[SecondCor521]

FW AOR! Just paid off mine but have not gotten any new offers.

Indeed . I did accept an offer recently from CapitalOne, which was sort of surprising to me. My mailbox lately is filled with adverse action letters :-(.

2Cor521