Comments on: No Short Supply of People Wanting Credit http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/ A case study on paying off all debts Thu, 09 Sep 2010 05:00:33 +0000 http://wordpress.org/?v=2.2.1 By: Steve in W MA http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-916 Steve in W MA Thu, 24 Sep 2009 07:30:49 +0000 http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-916 What I am saying is it's not "discipline" per se, but having an ironclad *system* that protects you. Personally I've tried most of the systems but the one that actually works, all of the time, even when you're not paying much attention to it, is the cash envelope system. What I am saying is it’s not “discipline” per se, but having an ironclad *system* that protects you. Personally I’ve tried most of the systems but the one that actually works, all of the time, even when you’re not paying much attention to it, is the cash envelope system.

]]> By: Steve in W MA http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-915 Steve in W MA Thu, 24 Sep 2009 07:28:38 +0000 http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-915 Unless you have a cash envelope system in place and you take the cash from the envelopes immediately after using the card, you *will* get sucked into spending out of budget and possibly into revolving debt. Rule of existence. The so called "safety" of not carrying cash is very expensive in my experience. The most I've lost in cash has been $80 (lost wallet before I started using cash envelopes). The most I have lost from the so-called "safety" of credit cards is $21,000 of absolutely unneccessary debt. Case closed. Cash is safer. Even if you lose your wallet you come out ahead compared to credit cards. Unless you have a cash envelope system in place and you take the cash from the envelopes immediately after using the card, you *will* get sucked into spending out of budget and possibly into revolving debt.

Rule of existence.

The so called “safety” of not carrying cash is very expensive in my experience. The most I’ve lost in cash has been $80 (lost wallet before I started using cash envelopes).

The most I have lost from the so-called “safety” of credit cards is $21,000 of absolutely unneccessary debt.

Case closed. Cash is safer. Even if you lose your wallet you come out ahead compared to credit cards.

]]> By: Thrift solutions http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-437 Thrift solutions Fri, 04 Jul 2008 06:08:38 +0000 http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-437 Having credit cards is ok if people can discipline themselves to use it for convenience and safety of not carrying cash, and making sure they pay on time. Also...you can also make money with credit cards if you know how. The problem starts when they get tempted to spend on unnecessary things and not settle full payment when the due date arrive. Having credit cards is ok if people can discipline themselves to use it for convenience and safety of not carrying cash, and making sure they pay on time. Also…you can also make money with credit cards if you know how.
The problem starts when they get tempted to spend on unnecessary things and not settle full payment when the due date arrive.

]]> By: Mrs. Accountability http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-387 Mrs. Accountability Sun, 20 Apr 2008 03:24:35 +0000 http://www.debtbeater.org/no-short-supply-of-people-wanting-credit/#comment-387 Mr. D, I have taken advantage of these offers several times. It has never been for a frivolous purchase; I take the discount, pay off the card as soon as it arrives and rarely use it again. Frugal Babe posted recently about a home improvement project they had embarked upon (post entitled Paying for the Remodel on March 28th) where they opened an account at Home Depot, got a $200 discount on the first purchase, with 0% interest for 12 months, and she cut up the card as soon as it arrived. While I doubt many of the people applying for credit cards at Mrs. D's job are employing the same thriftiness, some people do use this option to save money. The trick is use the card for your advantage and stop while you're ahead of the game. Kind of like beating the credit card companies at their own game. :-) Mr. D, I have taken advantage of these offers several times. It has never been for a frivolous purchase; I take the discount, pay off the card as soon as it arrives and rarely use it again. Frugal Babe posted recently about a home improvement project they had embarked upon (post entitled Paying for the Remodel on March 28th) where they opened an account at Home Depot, got a $200 discount on the first purchase, with 0% interest for 12 months, and she cut up the card as soon as it arrived. While I doubt many of the people applying for credit cards at Mrs. D’s job are employing the same thriftiness, some people do use this option to save money. The trick is use the card for your advantage and stop while you’re ahead of the game. Kind of like beating the credit card companies at their own game. :-)

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