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Is it a good idea to cut up your credit cards? I cut two of mine up earlier today. I'm thinking of cutting my last one up and consolidating my debt into a personal loan and closing the accounts.

Im kinda like a drug addict but my addiction is spending money i dont have. I was fine until the day i got my first credit card then all my good saving habits went out the window
 

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O.O

I have three separate accounts, a checking for bills, savings for well... savings, and a credit for fun. The credit gets paid in full every week (not month), the checking never goes below $500, and the savings grows every two weeks.

For me, it works to just set rules.
 

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Credit cards are relatively new convenience. Many people would have you think that they are necessary, but they are not. My husband and I have slowly weened ourselves off of them are moving toward cash only.
 

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Quote:
Originally Posted by Kindred View Post

Is it a good idea to cut up your credit cards? I cut two of mine up earlier today. I'm thinking of cutting my last one up and consolidating my debt into a personal loan and closing the accounts.
It depends on the interest rate of the credit card compared to the loan. It might be different in the UK but over here you can get 0% interest credit cards so if you can pay your debt off whilst staying with one of these cards it would be usually better than a loan.
 

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Quote:
Originally Posted by julz View Post

Credit cards are relatively new convenience. Many people would have you think that they are necessary, but they are not. My husband and I have slowly weened ourselves off of them are moving toward cash only.
Buying things online is about a million times easier if you have a credit card. Though I guess that's a bad thing if you have no self control like the OP. Having the line of credit available in case of emergencies is also nice. Also convenient if you need money in a hurry and all yours is tied up in term deposits/investments/whatever.

Of course, when you max out a card all these benefits disappear and it just becomes a useless drain.

OP: yes.
 

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Disclaimer: I am not a financial expert. :)

Having a credit card can be a good thing. You should pay the balance in the same month to avoid the interest charges. They are good in the event of an emergency. They definitely make online purchases easier and usually offer more fraud protection than a debit card.
HOWEVER, if you cannot trust yourself and you think you are going to overspend and get yourself into debt, cut it up, please!
 

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Do they have debit cards elsewhere than in the good ol' U of K?

A debit card has all the convenience of a credit card apart from that it only lets you spend money you actualy have in your account rather then allowing you to spend money that you don't.
 

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Unfortunately they are very necessary for some people who simply don't earn enough money every month to cover general necessities even; food, household bills etc. If it weren't for a credit card, many people wouldn't be able to pay for even the most basic of expenses. Not everyone has the luxury of having enough cash on hand to support the family.
Quote:
Originally Posted by julz View Post

Credit cards are relatively new convenience. Many people would have you think that they are necessary, but they are not. My husband and I have slowly weened ourselves off of them are moving toward cash only.
 

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Originally Posted by Clueless Git View Post

Do they have debit cards elsewhere than in the good ol' U of K?

A debit card has all the convenience of a credit card apart from that it only lets you spend money you actualy have in your account rather then allowing you to spend money that you don't.
That's what I have.
 

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Quote:
Originally Posted by Clueless Git View Post

A debit card has all the convenience of a credit card apart from that it only lets you spend money you actualy have in your account rather then allowing you to spend money that you don't.
Downside is if your card gets ripped off it's your money that's gone - you might get it back, but it could take a long time. At least if your CC gets done it's the bank's money.

Quote:
Originally Posted by *AHIMSA* View Post

Unfortunately they are very necessary for some people who simply don't earn enough money every month to cover general necessities even; food, household bills etc. If it weren't for a credit card, many people wouldn't be able to pay for even the most basic of expenses. Not everyone has the luxury of having enough cash on hand to support the family.
Credit cards don't magically produce money. If you're not earning enough to cover your expenses you're only going to stave off the inevitable by using a credit card.
 

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Originally Posted by leth View Post

Credit cards don't magically produce money. If you're not earning enough to cover your expenses you're only going to stave off the inevitable by using a credit card.
Obviously. Some people would rather "stave off the inevitable" rather than just give up and become homeless though.
 

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Unless a person is desperate, I don't understand getting into credit card debt. When I use one of my credit cards, it feels to me as though I am spending money, my money, no different than a check or cash. I know that I have to pay it off the following month and I plan for that.

Just think of credit as real money, not magic money and plan not to pay a penny of interest before you make your first purchase. Don't buy anything that doesn't fit into your budget.

If you don't have the self-control to do that, you probably shouldn't have a credit card.
 

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Never had a real credit card only a band one. I do not know if I ever will get one.
 

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I got into credit card debt by using them for food, medical bills, emergencies and basic necessities (rent, utilities, gas, etc). They can be a lifesaver but they can also be evil and leave you in debt for the rest of your life and destroy your credit history.

I hate how you need a credit card or debit card for almost everything now.
 

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Quote:
Originally Posted by delicioso View Post

Unless a person is desperate, I don't understand getting into credit card debt. When I use one of my credit cards, it feels to me as though I am spending money, my money, no different than a check or cash. I know that I have to pay it off the following month and I plan for that.

Just think of credit as real money, not magic money and plan not to pay a penny of interest before you make your first purchase. Don't buy anything that doesn't fit into your budget.

If you don't have the self-control to do that, you probably shouldn't have a credit card.
Well posted- I quite agree.

Also if you don't have a credit card how would you travel anywhere-make airline & hotel reservations/rent vehicles?

Or as mentioned buy anything online?
 

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It depends OP. As a student I don't have the luxury during the school year work many hours, so when i want to make a bigger purchase that i really want or need I can put it on my credit card and pay it back over two pays. Sort of like having 50% of the cost already in my acct, then making the purchase on credit, and then paying off the balance before interest is applied.

Another point that can be important for some, is Ahimsa's. Some people need them to survive, even at the base level with groceries. I know sometimes I have no choice but to put one week's groceries etc on credit because I had to buy a surprise $200 book for school, or I only got a 3.5 hr shift at work instead of 7.75 hr one.

They are handy, but it's really up to you , Kindred.
 

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Quote:
Originally Posted by leth View Post

Credit cards don't magically produce money. If you're not earning enough to cover your expenses you're only going to stave off the inevitable by using a credit card.
Basic fact that some some CC users seem to forget.
 

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Originally Posted by RabbitLuvr View Post

I had a friend who had issues with impulse-buying stuff on her credit cards. Instead of getting rid of them, she froze hers in a block of ice and kept it in the freezer. If she wanted to buy something, she had to go home and thaw out the ice block, and by then she had usually changed her mind. But she still had them in case of emergency.
I would be worried that the strip would get damaged, but maybe there is somewhere else you could stash away your cards, a home safe or something.
A safe deposit box is good for this. To get your card you have to leave the house and can only get to it when the bank is open. No late night spur-of-the-moment buying from the shopping channel.
 
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