Monday, August 19, 2013

Consider Cutting up the Credit Cards

Paper or Plastic?

People spend 12-18% more on average when shopping with a credit card vs. using cash or a debit card. It's more painful to part with cash than it is to just charge something.

If you pay with cash, that means you have the money and aren't going into debt.

You may be able to get a cash discount when shopping, ask. 

You can pretty much use a debit card anywhere you can use a credit card, including hotels and car rentals.

There are actually rewards debit cards out there. Check them out. And if you find a good one let me know. I can't find one I like. I was looking into PerkStreet, but they went belly up last week, they stopped their reward program and left a lot of angry people with unredeemed rewards.

But I need to earn enough air-miles to fly to Des Moines to see my nephew graduate from preschool. "75% of airline miles that are rewarded are never redeemed." Consumer Reports

We still have credit cards. They are paid off each month, and have been since 1987, that was the last year I carried a balance over to another month.

But the only purchases we make with them are at Amazon, 3% cash back on all Amazon purchases. And at the gas pump, 5% cash back on all gas purchases. I do this for the rewards obviously. But we have the money for these purchases already set aside in our checking account. We aren't using next month's income to pay for today's purchases. That being said, I'm thinking about getting rid of those cards and going all debit-card/cash.

69% of all bankruptcy filers say that credit card caused the bankruptcy.

"Only 35%  of card holders pay off their cards in full each month" US News and World Report

"Total U.S. credit card debt - $793 Billion" Statistic Brain

"Average credit card debt per household - $15,799" Statistic Brain

"Average credit card debt per U.S. adult, excluding zero-balance cards and store cards: $4,878" Trans Union

If you have trouble handling the cards. CHOP! THEM! TO! PIECES! Go gangsta on them.

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