The PIF Phenomena ;)

[bz386]

I will state something that might be controversial, so please bear with me. Not being able to PIF means you are likely living beyond your means. Yes, this includes emergencies. When times are good, you should be saving for the bad times. When times are bad, you rely on your savings, not on a credit card. If you live paycheck to paycheck and can't save, then you are living beyond your means.

I have never ever in my entire life carried a balance. Ever. Even on a 0% card. In fact where I lived for a large part of my life, the concept of a credit card didn't even exist. Either you had the money to buy something or you didn't buy it.

People like to rationalize they decisions with excuses. "But it was an emergency" really says "I didn't save enough during the good times".

[Anonymous]

---

@Anonymous wrote:

kdm -- very true with the exception of 0% APR cards for a year, or very low interest cards for cash rewards especially

---

Concur!  Kdm, concur! Same page with you both.

I throw this generalized opinion into the mix, "many" are not instructed to PIF, given the instruction that carrying balances is normal procedure for credit card use.  A reason the PIF Preachings are given here.  IMO this site is an informal education on credit cards, how when and why.  Real life Basic Training 101 does not include the teachings here of PIF, CLI, learning different credit scores etc.

With that, I conclude that teaching PIF is a new concept that should be taught and practiced, yet to give a CYA clause, if AA's are occurring on BT cards, 0% BT Promo's, that really grinds my gears towards the lenders. Insert mad squinty face here.

I am an advocate of keeping 3-6 mths of salary in separate savings. Undoubtedly a difficult task IMO.   This was my downfall, and I hope others do not learn the hard way as did I.

 (P.s. GL and congrats Joey on your RNP!)

[Anonymous]

so then what are credit cards for if not to occassionally float people by financially ?  As a tool simply to reap rewards?  What about non-reward cards?  They're plenitful. ...  why do they exist if not for those reasons?  I understand your thought process to a point but only to a point

[redpat]

---

@Anonymous wrote:

so then what are credit cards for if not to occassionally float people by financially ?  As a tool simply to reap rewards?  What about non-reward cards?  They're plenitful. ...  why do they exist if not for those reasons?  I understand your thought process to a point but only to a point

---

It's all about rewards, rewards, rewards and more rewards.  Getting something for nothing because they gave me this little flat plastic thing to pay for things that I would buy anyway.  Ohhhh, isn't free enterprise great.

Thank you Amex and Chase.

[Anonymous]

I am nowhere near rich - I make closer to $0 than I do 100k lol.  That said I PIF each and every single month and have for years now.  I use a CC for each and every single purchase I do day to day, the only two bills I have that are not paid via CC are two car payments.  All spending goes on CC, all CC are PIF, I cannot afford to give away money in interest.  That is my money, I have zero desire to give some of it away.

Each month my blanaces in my checking and savings goes up.  Very little granted but every single dollar helps, and it does continue to grow which is the goal.  Means I am living withen my means and it feels good to not have debit hanging over me.  It takes disicipline as there is always something I want like everyone else I assume, but if I really want it I can save until I can PIF for it without impacting my savings.  I don't have much and a single hosipital bill could ruin my best laid plans, but at least I am as prepared as I can be with my income.

[bz386]

Credit cards are high interest unsecured loans. Rewards were added to entice people to sign up for this banks card vs a competitors card.

If you are willing to pay high interest, then go ahead and do it. That doesn't mean it is a wise choice.

0% cards exist to entice you to carry a balance and then not being able to repay it before the 0% offer runs out.

[kdm31091]

---

@Anonymous wrote:

so then what are credit cards for if not to occassionally float people by financially ?  As a tool simply to reap rewards?  What about non-reward cards?  They're plenitful. ...  why do they exist if not for those reasons?  I understand your thought process to a point but only to a point

---

Personally, I think the "my CC can float me" is an incredibly dangerous path to go down. As stated above, you should have other alternatives.

Yes, to me the only real reason I use them is to reap rewards. With no rewards, the only real advantage to CCs are the increased protections over using debit. Valuable, but not exciting.

Even non-rewards cards are not 0% APR permanently, so again, that shouldn't be a crutch. This is why I don't get why so many people apply for the Ring for its "low APR". Yes, it has a nice APR, but should you be relying on that? No...you should have savings/another plan besides CC debt, ideally.

[Anonymous]

Again, what about non reward cards redpat?

[redpat]

---

@Anonymous wrote:

Again, what about non reward cards redpat?

---

What are those? Lol.

[satasat360]

---

@redpat wrote:

---

@Anonymous wrote:

Again, what about non reward cards redpat?

---

What are those? Lol.

---

chase slate, barclays ring, penfed promise etc