Exactly. And baked into that price is the credit card processing fee. By using a card that offers cash back on purchases you are recovering some/all of that cost. Paying cash doesn't do that.
What is your credit card debt?
- Thread starter alaskanseminole
- Start date
$0.00
I’m a Dave Ramsey follower
Everything I own including my home is paid in full.
I’m a Dave Ramsey follower
Everything I own including my home is paid in full.
this. you should be making money off your credit card...
I am sure there are small local businesses that offer a deal on cash. Besides swipe fees they might be avoiding paying taxes.
I get that some people have no self control and using cash/debit cards are probably in their best financial interest, For financially sound people I don’t get cash/debit only. Even if you just get a flat 2% cash back card and use it for everything you will at least come out 2% ahead.
I maximize each spending category as much as I can. My floor is 2% but for my main monthly spend categories which are grocery, dining and gas I get 4x back and sometimes 5x depending what Discover and Chase are offering that quarter.
Besides the cash back/points you get fraud protection, cell phone insurance, rental car insurance, extended warranties etc.
Most definitely! Most lawn, home improvement, handyman, etc. small businesses will tell you up front it's 3% cheaper for cash/check.
Finally, a financial thread where I don’t feel like a complete poor! We put everything we can on card and pay it off each month. Depending on what we buy, we can get anywhere from 3-5% cash back (Discover, AmEx). We’re banking all the reward money and plan on using it for a trip to Europe for our 5-year anniversary.
My lawn guy and handyman are cash only but at least they take PayPal, Zelle, CashApp or Venmo so I don’t have to carry cash.
About 5 years ago one June day, we received a letter from the County Treasurer saying we owed our last 6 month property taxes.....My bride checked her books and Lo and Behold....she forgot to pay them! (That one cost us about $60 in penalties!) I will never let her forget it......It's the only "late fee" or interest payment we have ever paid in the 32 years we have been together.
Rule of thumb is at minimum, 10% for that type of work
fwiw to the publix shopper above, 95% of my food is either purchased at farmers markets, indoor markets, or smaller ethnic grocery stores. People swiping airline cards for miles are losing at the end of the day.
Zero.
I use my cards frequently/monthly to get better deals at various stores as needed, but pay them off monthly unless I buy something for like 6-12 months zero interest.
I use my cards frequently/monthly to get better deals at various stores as needed, but pay them off monthly unless I buy something for like 6-12 months zero interest.
We pay off our credit card invoices every month to avoid any interest or late charges CC companies love to charge if you are late with your payment. Our monthly purchases range from $5k to $10k on them so use the Visa, MC, or Amex card to gain as many points as possible.
Cable, cell phone, food, household items, vacations/travel/entertainment, our tithe, we support several missionaries...
Yes it is. But how am I losing? I put everything I can on a credit card. Groceries, gas, dining out, utilities etc. All of these things I will need to pay for somehow every month. I could use a check, cash, ach withdrawal etc but I use a credit cards and never carry a balance or pay interest. So how am I losing?
Studies show when people use credit cards, they tend to spend more. I know everyone on here is an exception and do not have this problem.
www.forbes.com
How To Budget Better With Credit Cards In 2024
It’s possible to enjoy rewards and consumer protections without racking up debt. If you’re eager to make the most of credit cards this year, our tips can help.
www.forbes.com
Chances are you probably spend about 18% more using your card than if you used cash. And there is no card that gives you 18% cash back. Granted you can say absolutely not. I am very regimented with my groceries and dining out. I make a list before I step in store and only purchase what's on the list. I do not do any impulse purchases, but you would be an exception to most people.
hawkeyetraveler
HB Heisman
I suppose if 95% of your spending is on stuff you can get from small local vendors (I.e. basic groceries). If I look at our spending it is heavy on restaurants, travel, entertainment, etc. I almost never see a cash discount where I shop or spend money. And for the categories I spend money in this would only be a small portion of my spending anyway. It would be silly not to use a card since I pay it off every month - plus I am sure it contributes to my HORT-worthy stellar credit rating.
I also use my personal card for all work expenses. So I guarantee this is more advantageous than cash only.
Do I impulse buy sometimes, absolutely. Could I impulse buy while using a debit card, absolutely.
Do I impulse buy paying for gas, reoccurring monthly bills, pre school and so on, no.
For the people here that dont have cards; How do you rent cars?
Doing them with Debit Cards is a pain.
Doing them with Debit Cards is a pain.
Like I said, you are paying more for groceries and dining out (non-utilities) by using your card than you are getting in return in miles. That's a loss
For whatever stupid reason this will not help your credit rating. Which really seems odd to someone like me, who never had credit cards for many years.
Like I said you and everyone on here is the exception or believes they are the exception. And with a debit card you are less likely to than with a credit card and with cash you are less likely than with a debit card. There have been studies done on this and credit card companies also know this and even send enticing marketing programs to get people to spend even more. There is a reason they make so much money. But yes everyone here is an exception and beating them.
Used to always be $0 until I got married. The wife no pics still doesn’t understand how stupid it is to be paying interest on those things. Christmas every year doesn’t help. Her family loves to spend stupid amounts on Christmas and for some reason we have to do the same.
So if I take my kids to McDonalds and pay with a credit card that gets me at the minimum 2% cash back that is a loss vs paying cash or debit?
You're still losing by eating at McDonalds in that hypothetical, but I think you can see my point
I never said I was an exception. I admitted I impulse buy. But I also have monthly spend that is going to happen no matter what.
I do understand where you are coming from. Go back 20+ years ago and I was terrible with credit cards. Bought a bunch of useless shit, bar tabs etc and made minimum monthly payments. Now I treat them as debit cards with rewards.
This is HORT. We are exceptional.
Not quite. If I need to go to Publix and buy groceries, which happens every week, and I can get 5% cash back on my Discover card this quarter vs paying cash for the same groceries. Why wouldn’t I want the extra 5% back?
Sitting currently at 4k owed due to basement remodel I’m doing on my house. Still have 16 months of interest free on the card so to me it was a no brainer as taking a loan out from the bank would have charged interest. It will be paid off by the end of June. My other card I have is used for my work. It gets paid off after the job is done, I am a self employed GC. It’s worked for me over the years as I have built up my Fico score to be low 800’s and 3 years ahead on our 20 year mortgage with 9 years left now. Thank god for my wife, she taught me how to take care of finances. I used to have the mentality of spend now, I’ll just pay it back when the next job gets done. That did not work very well😬
If he is eating at McDonalds, he made a poor choice
, but he's going to spend the same amount using cash or card, so getting 2% back on the card puts him ahead of the cash payer.
I don't
I don't disagree, but I'm not a poor, so it's not a big deal.Studies show when people use credit cards, they tend to spend more. I know everyone on here is an exception and do not have this problem.
How To Budget Better With Credit Cards In 2024
It’s possible to enjoy rewards and consumer protections without racking up debt. If you’re eager to make the most of credit cards this year, our tips can help.
No seriously, I am the exception. We don't eat out. When we buy groceries we don't impulse buy, stick straight to the list. How? Order online for free pickup. Impossible to impulse buy. Gas is gas, can't impulse buy that. Hotels when we travel, same, no impulse.
There is not a time where I throw something on the card and say F it, I'll figure out how to pay for it later. I either need it, or I don't. Literally every purchase we make is planned out because my wife (no pic) is F-ing OCD like that and I just don't buy much of anything.
I used to use my debit card exclusively. I simply switched over to using a CC and now get cash back that I didn't get before while using my debit.
Maybe or maybe not. Using a card may cause him to buy/spend more than he would had he been paying with cash.If he is eating at McDonalds, he made a poor choice
Some science behind it.
How credit cards activate the reward center of our brains and drive spending | MIT Sloan
As credit cards have become a popular form of payment method, researchers have noticed an interesting trend. People tend to spend more when using credit cards than cash. Not only are they more likely to buy something at a higher price, they also are likely to give larger tips and make more...
Seriously? My kids want a cheeseburger and nuggets that is going to be bought either with an cc or cash and I am going impulse buy? Nice stretch.Maybe or maybe not. Using a card may cause him to buy/spend more than he would had he been paying with cash.
Some science behind it.
How credit cards activate the reward center of our brains and drive spending | MIT Sloan
As credit cards have become a popular form of payment method, researchers have noticed an interesting trend. People tend to spend more when using credit cards than cash. Not only are they more likely to buy something at a higher price, they also are likely to give larger tips and make more...mitsloan.mit.edu
No CC debt, pay them off every month.
5% cash discount on everything I buy at Amazon with the Amazon card - which is a lot.
2% on everything else with a Citibank card.
I pay for everything I can on a credit card.
5% cash discount on everything I buy at Amazon with the Amazon card - which is a lot.
2% on everything else with a Citibank card.
I pay for everything I can on a credit card.
