Credit Cards

[rbbyrbsn]

This isn't true, since I went all credit in 07/07  cash gos up it smoke, beasuse I know it not commming back to haunt me,

But I guess I do spend more on credit in the sense if they don't take cards the don't get my business

[jessep28]

The fact that people pay more with plastic is nothing new. You also spend more in gas and/or ATM fees taking cash out for everything too.

[scenario84]

jessep28:

I disagree that you would spend more on gas/ATM fees because most people would not drive all the way over to an ATM to get cash for something unless it was absolutely necessary. In that case, then the purchase is probably not a case of overspending.

The same applies to ATM fees. If someone is willing to eat an $0.99 to $3 ATM fee just to buy something on the spot it is probably required as well.

These roadblocks to your cash make you think, is this something I need that badly? In many cases, it really is not.

Besides, both of the above problems can be solved with appropriate budgeting and timing of ATM withdrawals to ensure you only need to withdraw when you're close to your bank.

[beenthere]

"So you are wondering what?" is Goergia speak for "Yer dang right!" That's what the credit card people are hoping for. LOL.

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jpreloaded wrote:
I'm saying that regardless of APR (which doesn't matter to those who PIF anyways), on average people spend more on CCs than they would if it came immediately out of their own pocket.

So for MOST (not all) people, they might actually be better off just using a debit card/cash if their only purpose for using a CC was rewards.

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[Skidude514]

Don't you think that a Debit card would probably incur the same probs as cc? I guess you can only spend $$ you have, but still... if I'm not mistaken... the psychology behind spending more with CCs has more to do w/ the fact that they're plastic (i.e. not actually counting out physical money and not actually seeing your "stack" of money get smaller), not because its borrowing money... (feel free to correct me if I'm wrong)

[beenthere]

People spend more on credit cards because they have credit cards. Not everybody but very very many. That's why people with credit are in debt and those without credit, are not in debt.

I'm havin' so much fun bein' a smarty today.