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Has a/o stopped using credit cards and only use cash?
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amother
Vermilion


 

Post Fri, Oct 12 2018, 5:07 am
And if yes, was it a good financial plan? Did it help you spend less money in the long run?
I dont mean for things like rent/mortgage or school tuition. Daily things.
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amother
Oak


 

Post Fri, Oct 12 2018, 6:05 am
We did when we had to - our credit was terrible and we didn't have any more working cards.

It was tough. Ever paid for groceries in pennies and dimes borrowed from the pushka?

But yes, we spent less because we COULDN'T buy things that we needed, and we managed to do without. I.e. I would not consider diapers in the correct size a luxury, but when you don't have the money for it, then you use up ALL of the size 2s even though you should have switched to size 3. Pasta is a necessity, but when you don't have it, you somehow manage to concoct some sort of dinner out of the leftovers in the fridge (some of which might have gone to waste if left for another few days).

Now we B"H have credit cards and definitely spend more.

But I'm glad we have the choice!
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Rappel




 
 
    
 

Post Fri, Oct 12 2018, 6:26 am
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.


Last edited by Rappel on Fri, Oct 12 2018, 6:37 am; edited 1 time in total
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amother
Indigo


 

Post Fri, Oct 12 2018, 6:31 am
I havent used a credit card in 20 years. If I cant afford it at the moment, I simply dont buy it. Best thing ever. I have no debt.
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watergirl




 
 
    
 

Post Fri, Oct 12 2018, 6:46 am
Yes. Our old rav told us never to have a cc because it shows lack of emunah (dont ask). We cut them all up. 10 years, no cc at all. Then we went to apply for a mortgage and couldnt get one because we had no current credit! I opened a cc, quickly established credit, and BH have our house. Even now, I only use my cc for a tank of gas once a month. You just only buy what you have the money to pay for. If there is a real emergency, I’ll put it on my credit card but I have a very low credit card limit intentionally so I can’t rack up a lot of debt.
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Ruchel




 
 
    
 

Post Fri, Oct 12 2018, 6:57 am
We never had credit cards. We cannot go under zero from them. My husband uses cards. I don't even though he got me one when I left for a week with 2 kids last winter.
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amother
Maroon


 

Post Fri, Oct 12 2018, 7:34 am
Yes I try to do cash only it really makes you think before you spend or use the debit card but that's like cash so you got to be careful we do have a credit card that we use sometimes Bec for whatever reason we are short but definitely try cash shopping.
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zaq




 
 
    
 

Post Fri, Oct 12 2018, 7:45 am
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.
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southernbubby




 
 
    
 

Post Fri, Oct 12 2018, 7:50 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.


Probably few people treat them like cash.
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watergirl




 
 
    
 

Post Fri, Oct 12 2018, 8:03 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.

Re: your fist paragraph - “Debit card” is used interchangeably with “cash”. For me, at least.
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cm




 
 
    
 

Post Fri, Oct 12 2018, 8:08 am
I don't understand why people think of credit cards differently than cash, but if that is a problem for you, stop using them for day-to-day expenses.

For me, using a card makes the most financial sense. I can keep track of my expenses more easily using my cc account, and get a nice discount that really adds up over time. (I prioritize a favorable rebate feature when selecting a card).
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amother
Gray


 

Post Fri, Oct 12 2018, 8:21 am
We never use credit card or checks (except for those few things for which you can only pay by check). Only debit.
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amother
Turquoise


 

Post Fri, Oct 12 2018, 8:23 am
We try to use CC whenever possible to rack up miles so we can afford to fly our son home from Yeshiva.
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amother
Pewter


 

Post Fri, Oct 12 2018, 8:43 am
Yes we’ve done it for a while when we had neglected credit card debt. It definitely helped us spend only what we had until the entire debt was repaid.

Now we use credit cards again for everything, but we are strictly careful to pay our bills Baruch HaShem.
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southernbubby




 
 
    
 

Post Fri, Oct 12 2018, 8:51 am
cm wrote:
I don't understand why people think of credit cards differently than cash, but if that is a problem for you, stop using them for day-to-day expenses.

For me, using a card makes the most financial sense. I can keep track of my expenses more easily using my cc account, and get a nice discount that really adds up over time. (I prioritize a favorable rebate feature when selecting a card).


Because it doesn't feel like parting with money.
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amother
Ivory


 

Post Fri, Oct 12 2018, 9:08 am
southernbubby wrote:
Probably few people treat them like cash.


We do. We pay our bill every month and don't rack up debt. It has big benefits. It's safer, offers buyer protection, travel insurance, car insurance for rentals, points, rewards, and the benefits of having an established credit history.

We also get other benefits like introductory interest free for 2 years which if you are responsible is basically interest free loans for two years. When we had big ticket items like house repairs instead of having to finance them and pay interest we took out an introductory interest free credit card and paid it off every month before the interst kicked in. We saved hundreds and hundreds of dollars this way. However your credit needs to be perfect, you need to be responsible, and you have to be sure you can float the monthly payment for this to work. In our case we came out ahead.
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steak4me




 
 
    
 

Post Fri, Oct 12 2018, 9:09 am
My husband and I only use cash as well for daily expenses. The rest are all on auto pay from out bank account directly. It definitely keeps us budgeted. We take out a same certain amount of money the beginning of every week and that’s what we use.
Sometimes it’s more than enough so it accumulates for the weeks when bigger expenses come up.

To me credit cards are scary and hard to manage well. It makes ur ability to spend limitless. But on the other hand, the miles you can earn can really get you places.
I wanted to open certain cards to earn rewards towards a vacation I wanted to go on, but my husband said that miles are also part of the money Hashem decides for you on Rosh Hashana and nothing we do will change that amount. So if we’re supposed to afford it, we will....
Not sure I fully agree with that, but I definitely appreciate his rock solid emunah.
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amother
Saddlebrown


 

Post Fri, Oct 12 2018, 9:13 am
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.
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bigsis144




 
 
    
 

Post Fri, Oct 12 2018, 10:41 am
I grew up poor and had the attitude of "credit cards are DANGEROUS AND PREDATORY, I will only be safe/stick to a budget with cash".

But DH grew up in a far more financially stable and financially savvy/educated household and taught me how important good credit is (at least in the United States, I don't know about elsewhere).

No credit is seen as the same as bad credit. What having (and using) a credit card shows is that you are capable of (and will actually follow through on) making regular payments: ie, it is proof of having a steady income (even if you do not actually have a steady income). It is showing you reliably can pay for things you purchase, which is what your credit score is all about.

Think of it this way: you have a credit card, which is your credit tracking device. You use the card to tell someone “I will pay for this thing with borrowed money.” They agree to allow you to pay with borrowed money. You then turn around to your credit card company and say “Thank you for allowing me to borrow your money, I will now pay you back with my own money.” (which, if you repay them promptly enough, you can repay them the exact same amount you borrowed, rather than paying them more than you borrowed [which is what interest is])

The credit card company then recognizes that you successfully borrowed their money AND returned it safely, and they pass that information along to credit tracking companies. Each time you do this, you gain credibility. If you do this enough times, you are considered a credible borrower of money, so that if you ever are in a situation where you need to borrow a large sum of money (for example, a mortgage or a car or a hospital bill or whatever), companies with money will look at how well you have returned money in the past, and say "Ah yes, this person repays their debts well, so we can lend them our money this time."

Credit cards are also safer than debit cards because a debit card is directly linked to your bank account, so if your debit card gets stolen/hacked, it's like losing cash.

You can open a credit card account with your bank and use it for as little as paying for a tank of gas every month; or just automate it to a small recurring expense like your monthly cell phone bill.

That's why even though DH and I share all our money, I also have a credit card in my name alone that is totally automated. It just helps me build a good credit score.
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amother
Copper


 

Post Fri, Oct 12 2018, 10:54 am
I use credit cards for everything but I pay off my credit cards each month. I don't charge anything that I couldn't afford to purchase for cash and I have enough in savings so that I can afford the emergency medical or car repair. I mostly use a card linked to amazon so I accumulate lots of money to spend when I buy on amazon.

When I was younger and more foolish financially I charged and didn't pay off. At a certain point I calculated how much that latte or dinner out or pair of shoes actually cost because of the obscene amount one pays in interest which is compounded so you wind up paying interest on the interest.

There are times when I had less money and just pared down all expenses to the absolute essentials because I couldn't afford to pay the interest that I knew I would have to pay if I charged something without being able to pay off the balance in full that month.
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