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Forum -> Household Management -> Finances
Has a/o stopped using credit cards and only use cash?
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zaq




 
 
    
 

Post Fri, Oct 12 2018, 11:43 am
southernbubby wrote:
Probably few people treat them like cash.


True, and that’s why so many people run into trouble.
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Fox




 
 
    
 

Post Fri, Oct 12 2018, 11:56 am
If you can genuinely treat your credit cards like cash, then that's great. Unfortunately, there are very few people who can do that.

I do know people who conscientiously keep track of points, miles, and whatever other benefits they get, and again, it's great if you do that. Most of the people I know who do it spend a fair amount of time on it, though -- it's really like a hobby. So you have to be honest about whether you have the time, energy, and interest to do that.

Almost 25 years ago, we reduced our credit cards to a single one that we use for car rentals -- the only situation we've found where a debit card won't work.

Because our income has really varied over the years, there have been times when we were "living in high cotton," as they say, and times when we were really scrounging. For both better and worse, we simply couldn't buy anything if there wasn't money in the account.

I will say this: if you do run into a situation where you need to ask for help from a gemach or something similar, you will likely receive a better reception if you don't walk in with thousands of dollars of consumer debt.
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amother
Chartreuse


 

Post Fri, Oct 12 2018, 12:03 pm
amother wrote:
I basically only use credit cards. And am not in debt bh.
I don't get the only cash idea. Not talking about plane tickets and hotel rooms (lol totally out of my financial league). But I order tons online. If I only used cash I'd have to go to stores for everything. Ain't got no time for that. I order household essentials from Walmart/Amazon, kids clothing from h and m, Zara, childrens place, etc. Food from the grocery I email in my order.. seriously I'm hardly ever in an actual store. But even when I do go shopping I still use cc.
BUT we don't overspend. We generally have an idea how much money is in our bank account (never too much) and how much needs to go for bills and other stuff. I treat it like cash.
Also we get cash back or statement credit from using cards. It's so worth it.


Yes, I agree with this and other posters who wrote similarly. I use only credit card and never have cash on me but I only buy wat I could pay for so I pay the bill before interest "hits". Also, I shop online mostly bec I have little time to shop and I now pay more bills with the credit card just to get the cash back"" and then pay the credit card with the money in my bank account for that specific bill. So, I dont use it like a credit card but I do budget the same way.
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InnerMe




 
 
    
 

Post Fri, Oct 12 2018, 12:45 pm
Fox wrote:
If you can genuinely treat your credit cards like cash, then that's great. Unfortunately, there are very few people who can do that.

I do know people who conscientiously keep track of points, miles, and whatever other benefits they get, and again, it's great if you do that. Most of the people I know who do it spend a fair amount of time on it, though -- it's really like a hobby. So you have to be honest about whether you have the time, energy, and interest to do that.

Almost 25 years ago, we reduced our credit cards to a single one that we use for car rentals -- the only situation we've found where a debit card won't work.

Because our income has really varied over the years, there have been times when we were "living in high cotton," as they say, and times when we were really scrounging. For both better and worse, we simply couldn't buy anything if there wasn't money in the account.

I will say this: if you do run into a situation where you need to ask for help from a gemach or something similar, you will likely receive a better reception if you don't walk in with thousands of dollars of consumer debt.


I completely agree with this post.
It's a very different feeling to actually remove money from your account, then swipe a credit card. You just end up being more careful, because if the money aint there- it just aint there. You could bang your head in the wall but there's no money there. Period.

I spoke to a financial adviser recently who believes that credit cards are biggest chorban for people, in creating an endless cycle of debt, and creating a culture of buying without thinking whether you have the ability to pay for it. And then when you can't pay it.. they knock you out with interest fees.

I try to limit my credit card usage though when I use it I immediately transfer cash from and envelope to a "my bank account" envelope.

I've found it to be such a freeing (though sometimes difficult) experience to go to the store, and just pay with cash, those old fashioned green papers. And watching my money physically taken away...it just creates a whole different level of feeling like you are parting with your money compared to when you use a credit card.

I used to love the concept of credit cards but after doing research I realized how true it is that credit cards are a budget's enemy... and it's true some people can be disciplined to use it exactly like cash. But the vast majority cannot.
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InnerMe




 
 
    
 

Post Fri, Oct 12 2018, 12:51 pm
amother wrote:
Yes, I agree with this and other posters who wrote similarly. I use only credit card and never have cash on me but I only buy wat I could pay for so I pay the bill before interest "hits". Also, I shop online mostly bec I have little time to shop and I now pay more bills with the credit card just to get the cash back"" and then pay the credit card with the money in my bank account for that specific bill. So, I dont use it like a credit card but I do budget the same way.


I also shop online.. though our purchases have wildly decreased since we stopped using CCs.
I use the envelope system. Basically if I purchase a dress on Amazon, I'll do it with my debit card, and then I will go to my clothing cash envelope, and transfer the amount into my "bank account envelope" And I will watch my money envelope decrease.
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amother
Chartreuse


 

Post Fri, Oct 12 2018, 3:31 pm
InnerMe wrote:
I also shop online.. though our purchases have wildly decreased since we stopped using CCs.
I use the envelope system. Basically if I a dress on Amazon, I'll do it with my debit card, and then I will go to my clothing cash envelope, and transfer the amount into my "bank account envelope" And I will watch my money envelope decrease.


I uses to do everything with a debit card like u stated above, but I recently opened citi double cash bec I get 2% back which may only be 500 back a year but I use the extra money. Recently, I decided to pay my tuition bill on this credit card instead of my debit card so I can get more money back. If anyone uses a better card, let me know, but I don't really travel or go away so I don't need points...
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amother
Vermilion


 

Post Sun, Oct 14 2018, 1:53 am
zaq wrote:
Try buying a plane ticket with cash. Or reserving a hotel room. Or buying clothes at Everlane. (Everlane is an online retailer that opened a couple of brick-and-mortar stores in response to consumer demand. The shops have no cash registers and accept only plastic. They can’t be the only ones.)

Of course if you’re literally searching for lost change under the sofa cushions to pay the grocer, you’re not likely to be buying plane tix, reserving hotel rooms, or shopping at Everlane.

The way to use cc’s and not get into trouble is to treat them as cash. Never buy anything if you don’t have the money in the bank to pay the bill in full, period.
In terms of plane tickets and such, I did write that I meant daily things, not big purchases.
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amother
Vermilion


 

Post Sun, Oct 14 2018, 1:58 am
Rappel wrote:
I wish... Real money makes so much more sense to me than cards.

In the end, because there are so many things you have to pay for with credit cards these days, we opted to basically only pay with our card. This lets us review all our expenses in a list at the end of the month, and get a realistic tally of what we spent - which solved the problem of us forgetting to write expenditures down. Wink

ETA: we live in Israel, and by credit card, I'm referring to our bank card. It's one system here, and makes accountability pretty easy.
So, I am also in israel (maybe ill start the same thread in the israel section)

As for getting a monthly notice of everything I spent, I have been good about every time I spend cash/money, I will ask for a receipt so as the end of the month when we get our statement, it is literally only things we can not pay cash for (chugim, car insurance etc)
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