In Cash

[Anonymous]

I'm very excited today I decided pay off a zero percent 0% interest free card early but why would you do that? Because I'd love to spend cash for once instead of using credit cards... Don't get me wrong I love every credit card granted to me but it's time for me to learn how it feels again to just pay in cash everything this forum "MyFico" has inspired me.

[Anonymous]

Welcome to the club. In the past 6 months I have closed around 4 credit cards, 2 car loans, and 2 personal loans. All I have left is one single credit card and plan to close that too at some point. I am 100% non mortgage debt free and following Dave Ramsey. Will also pay for things with cash (debit) as I proceed

[DaveInAZ]

- Why would I pay for something with cash when I get a 2-5% "discount" for paying with a credit card (CC rewards redeemed as a statement credit)

- Really hard to pay with cash for online purchases.

- Really hard to rent a car with only cash.

- Pay with a CC and you get free bennies like purchase protection, price protection, etc.

- Perhaps a bit trivial, but I hate carrying coins. Don't have enough coins? You get pocketful of coins back from your purchase. Since I started paying everything with CCs no more coins, yea!

[Anonymous]

Debit card.

[Anonymous]

+1 to what Dave said......why would I give up a % discount just so I can say I'm using cash?  And as Dave pointed out, cash isn't always the easiest or best way to operate.  I understand wanting to be debt free (good for you for paying all of that off!), but you can still keep credit card(s) if you pay off each month what you've put on them.  You can still be "debt free" and use a credit card as long as you pay off what you use each month.  Is this really about not trusting yourself to pay off what you spend?  If so, I understand, and that's great if you realize that.  Anyone's financial journey is easier if they realize their limitations, strengths, and weaknesses when it comes to money and credit.  

[DaveInAZ]

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@Anonymouswrote:

Debit card.

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I never ever use debit because of the liability potential. If your CC# gets hacked you are limited by law to the first $50, and CC companies rarely make you pay that. If your debit card# gets hacked they can empty you bank account in a flash, and you're begging the bank to give you back your money. Debit cards were only invented so that the bank and card processing services get transaction fees, which they weren't getting from checks.

With debit cards you need to very careful that card authorizations don't cause a problem with available balance. I worked as a hotel financial controller and dealt with a complaint from the customer who used a debit card. When you check into a hotel the hotel places an authorization for your entire stay, plus 20% for "incidentals" - room service, etc. So for a 3 night stay at a $100/night hotel they will put a hold/authorization on your card for $360. The customer complaint was that with that hold on his debit card checks that came in were NSF, and the bank charged him $60 for each NSF, so he had a couple hundred dollars in OD fees. All I could tell him was "Sorry, that's how it works with a debit card. If you had used a credit card and additional charges that came in that put you over your credit limit they would have just been declined, with no fees".

[iced]

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@Anonymouswrote:

I'm very excited today I decided pay off a zero percent 0% interest free card early but why would you do that? Because I'd love to spend cash for once instead of using credit cards... Don't get me wrong I love every credit card granted to me but it's time for me to learn how it feels again to just pay in cash everything this forum "MyFico" has inspired me.

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I fail to see the distinction. Paying with a CC is paying with cash. If I run up $X on a CC in a month, I have to pay $X by the statement date.

Or are you referring to actually paying with paper currency?

[Anonymous]

I totally get paying in cash, and I totally get using a card for the cashback/rewards. I think it's easy, and I'm not saying this is applies to CapCredit72, I'm more saying that I can struggle with this, but it's easy to chase rewards and get a little out of control. Maybe not be disciplined enough to immediately pay what was put on a card. 

Every person knows their own weaknesses and limitations, or just what makes them feel good. Every person needs to do what is best for him/her. 

[Anonymous]

I've never really been one to spend say 3K just to chase $250 granted those rewards sure are nice if your spending and have it

set aside in cash... But doesn't make sense to spend 3K for nothing as some do and chase a bonus because you only have a 3 month window...

However for me I know for a fact using credit I spent more then I ever would have if I just paid the cash simply because I could pay over time and while that was wonderful to have so many 0% zero percent offers and earn cash back I need to get more control over how I spend my hard earned money... While I also do have cash on hand and put somewhere for all the purchases I ever made way in advance of bills I still found myself having to rob other areas of income because I over spent lesson learned avoid the pay over time trap. I'm still going to use all of my credit cards specially cash back ones but in smaller amounts also everytime I got BT checks they always found their way to my shredder as I never ever wanted to pay interest on any BT.

[Anonymous]

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@Anonymouswrote:

I totally get paying in cash, and I totally get using a card for the cashback/rewards. I think it's easy, and I'm not saying this is applies to CapCredit72, I'm more saying that I can struggle with this, but it's easy to chase rewards and get a little out of control. Maybe not be disciplined enough to immediately pay what was put on a card. 

Every person knows their own weaknesses and limitations, or just what makes them feel good. Every person needs to do what is best for him/her. 

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Thanks! very much for your post and the kudo's.