I love Credix Cards

[mtechnik]

whao this discussion has really TAKE OFF. Educational guys :D

[FredK]

Credit Cards do not improve your cash flow. Cash flow planning maximizes cash flow. Credit Cards allow you to spend money before you really have it based on income speculation. Anytime you speculate you've added risk.

Maybe it is just you stereotyping credit card users, but I don't speculate income. I know you've mentioned a few friends who pretty much spend 90 cents of each dollar they earn and pay their credit card balance at the end of the month with their monthly paycheck. That is certainly not my situation and likely, it isn't erik325i's either.

Like you, I have enough cash to survive for more than six months, and should the unexpected happen, I will not be caught in the lurch. Plenty of people have found financial stability even while holding credit cards. Holding a credit card is NOT the sole determinant of whether you will be financially stable or not.

Your example of Billy is stereotypical, but not automatically true.

[RobertK]

Maybe it is just you stereotyping credit card users, but I don't speculate income. I know you've mentioned a few friends who pretty much spend 90 cents of each dollar they earn and pay their credit card balance at the end of the month with their monthly paycheck. That is certainly not my situation and likely, it isn't erik325i's either.

Good thing you're smart enough to not go that route. Most the people I know spent more than 90 cents of each dollar in the process.

Like you, I have enough cash to survive for more than six months, and should the unexpected happen, I will not be caught in the lurch.

:D - That's awesome. You would be surprised at how many people don't even have one savings account.

Plenty of people have found financial stability even while holding credit cards. Holding a credit card is NOT the sole determinant of whether you will be financially stable or not.

Your example of Billy is stereotypical, but not automatically true.

What you say is very true. And Yes Billy is a stereotypical credit card user.

IIRC 20% of credit card users are responsible enough to pay the balance off each month. That's kinda sad though if you think about it. That means statistically 8 of every 10 people posting in this thread who own a credit card have (or had) a credit card balance carry over last month.

For me personally, I guess the point I'm trying to make is that even though you can be completely responsible and have self control with a credit card. If you are already responsible with money you have then there really is no need to use a credit card. IMHO it only adds one more bill I have to send out each month. Thus the Cash = No Hassle comparison.

[erik325i]

You can use a CC for all your purchases as well. If you are able to have self control and are responsible enough to budget and cash flow your money then you should be ok.

You finally see my point.
I was never talking about the average American or stereotypical American, but I was refering to people smart enough to handle their finances (like Fredk and I). Credit cards themselves are not bad. Irrisponsible people with credit cards are bad.

Like Fred, I have more than enough money in my checking account to pay for months worth of bills. I also have a savings account that pulls money automaticly from my checking account every month. I have been managing my own money since I was old enough to drive.

Blaming credit card companies for getting you into debt is like blaming your speeding ticket on the car company for making their cars too fast. Just because most people can't practice self control, doesn't meen the credit card is to blame. Just because most people speed, doesn't meen you can blame the car company...
I hope you all can understand my analogy.

-Erik

[RobertK]

You finally see my point.
I was never talking about the average American or stereotypical American, but I was refering to people smart enough to handle their finances (like Fredk and I). Credit cards themselves are not bad. Irrisponsible people with credit cards are bad.

I guess this whole time I've been going back & forth with the 2 out of the 10 ;).

Like Fred, I have more than enough money in my checking account to pay for months worth of bills. I also have a savings account that pulls money automaticly from my checking account every month. I have been managing my own money since I was old enough to drive.

Again.. Awesome deal! Don't ever stop!

Blaming credit card companies for getting you into debt is like blaming your speeding ticket on the car company for making their cars too fast. Just because most people can't practice self control, doesn't meen the credit card is to blame. Just because most people speed, doesn't meen you can blame the car company...

I agree 100% there too. Self accountability is one of the major keys to becoming sucessful at anything.

I hope you all can understand my analogy.

-Erik

I hope you understand mine as well.
vv

If you are already responsible with money you have then there really is no need to use a credit card. IMHO it only adds one more bill I have to send out each month. Thus the Cash = No Hassle comparison.

[erik325i]

I hope you understand mine as well.
vv

Yeah, I understand your point too.

So uhh... Now that we both see each other's points, what do we have left to debate about? :D

-Erik

[RobertK]

Yeah, I understand your point too.

So uhh... Now that we both see each other's points, what do we have left to debate about? :D

-Erik

Co-signing... Never ever ever DO IT! Not for friends or family.. Just say no to co-signing. Discuss..

[erik325i]

Co-signing... Never ever ever DO IT! Not for friends or family.. Just say no to co-signing. Discuss..

Completely agree. :)

-Erik

[RobertK]

Your turn to pick a topic.