For revolving credit users... How much extra would you need a month to ditch the plastic?

[SoCalDem]

I'm not talking about the existing debt , if you pay minimum or a bit more.. I'm talking about the actual amount you routinely "charge" on plastic on a monthly basis..

I am also not talking about those people who use their cards to get "miles" or "freebies" ,and then pay the entire amount..

I am talking about the people who use cards because they DON'T have enough in their accounts to buy the things they want/need..

For instance, if you routinely charge $300 a month on credit cards and do not pay the whole amount, and you are paid hourly, most would only need an increase in wages of $1.73 an hour...or perhaps a part time job that paid $80 a week....and the stuff you buy with cash or debit card comes with no interest charges or late fees..

I think that most people get into credit card trouble innocently enough... they see a teriffic bargain, and just know they'll pay it off right away, and then the car breaks down, or someone gets sick, or a job is lost, and once a balance inflates, it gets easier to keep piling it on.. At some point futility sets in.

For decades now, wages have been stagnant, and until wages rise to actually meet the needs of people, our financial nighmare will not end.

People who have been foreclosed on, and who have no hope WILL default on their cards at some point, as will people who finally reach that "limit".. Many are faithfully paying on cards so they can maintain use of them, never planning to ever pay them off..most won't live that long:(

Back when people had "extra" money, there were fewer places to spend it or things to spend it on..Maybe that's why people saved more back then..

[JeanGrey]

1. We NEVER "routinely" charge on plastic every month and

it would be foolish to do so.

[SoCalDem]

6. Nor do WE, but millions DO..

We paid em all off years ago, and only use our debit card, BUT our income is also sufficient to cover our needs & wants..and to save.. we are fortunate.

[JeanGrey]

11. Yes millions do and it is foolish. If your income isn't sufficient,

charging it isn't going to change that, it is only going to make things worse in the long run. Unless you can get out of your debt and walk away.

[Adsos Letter]

2. "Maybe that's why people saved more back then.."

There was a time in this country when saving what one could was considered a virtue. Plus, until economists began fending off the natural expansions and contractions of the market people were exposed to more frequent boom and bust cycles... the panics of the 1830's and 1870's were enormous in their socio-economic dislocation.

Anyway...your question is a good one. I can't help you, because we are fortunate enough, in these times, to be able to get by without carrying over debt.

I really, really hope that our country adopts some form of economic model that will spread that ability across the broadest range possible...ideally, everyone.

[regnaD kciN]

7. Plus...

...back in the old days, consumer credit was different.

First off, while many department stores, gas chains, etc., had "charge plates," they weren't credit cards as we now know them. They didn't use revolving credit -- you simply charged your purchases to the account, and paid the bill in full every month.

And even the big-time revolving credit providers (known, at the time, as Bankamericard and Mastercharge) had drastically different policies than nowadays. First of all, interest was much lower than it is now. Second, while comparatively few people could "get credit" (I still remember the feeling of having "made it" when I managed to qualify for a Mastercharge card back then), those cards came with low spending limits and a strictly-regulated interest rate (which was workable because, with the stricter standards, banks and finance companies weren't handing out cards to people with "questionable credit" -- you'd only get that credit card if they knew full-well that you had more than enough income to easily pay back whatever limit they assigned you. The only way it would budge from your set APR would be if you stopped paying them, in which case your card would be canceled and the entire amount would become due immediately. The notion that a credit card company could decide, based on their own arbitrary reasons, to raise your interest rate and have it retroactively apply to any balance you were already carrying would be considered usury. Of course, so would rates of 20% or even 30%.

[ima_sinnic]

8. I also remember unsolicited credit cards coming in the mail, ready to use

heh--they put a stop to that fast when people actually started using them and then not paying.

[JeanGrey]

12. Yes you are very correct! The way charge cards were done

is VASTLY different than now. If you were late, usually they really didn't care if you didn't make a habit of it and the late payment wasn't too late. And if you stopped paying they WOULD cancel you and not keep heaping hundreds of not thousands of dollars on your head.

Nonetheless, not handling credit like it was a loaded gun is really insane.

[Donnachaidh]

3. people need to get off that plastic teat

And wake up to the FACT that their lives would not be so stressed if they didn't buy into the *gotta have it NOW* mentality being spoonfed to them through advertising.

Want to see the charge card rates go DOWN? STOP using them for every single purchase. Keep ONE card for emergencies.

LIVE WITHIN YOUR MEANS.

It's frightening - but it works.

[emilyg]

4. My daughter gave me all of her cards to put in my freezer - she kept one for emmergencies.

It can be done.

[NNN0LHI]

10. Freezer? Thats the first place a burglar looks for any valuables

The second place they look is the refrigerator.

Don

[emilyg]

16. If a burglar broke into my place - he would

lok around and bring me stuff.

[JeanGrey]

13. Unfortunately living within your means is something a lot of

people just can't get the hang of.

[Trajan]

5. I have none ...

I've been forced to live within my income limits for 5 years now ....

I reduced my expenses to match my income, which means I haven't much of anything other than bare necessities .... IF I get a little OT, then that is extra ....

I have nothing left to save, nor enough to pay my son's college tuition ....

I am living the bottom line ...

[spinbaby]

9. We use our cards mainly for travel

They get paid off when we return. If we haven't traveled in a while, we sometimes get calls from the credit-card company offering special deals to use the card.

[proud2BlibKansan]

14. Never use em and don't want any

Paid all of them off 25 years ago. Live on what money we have now and have never regretted it. And in this economy, we feel wealthy.

Went to the car dealer today for an oil change and they told me I need new tires. I said I will have to wait till after Christmas because I don't have the money right now. They said Toyota has a great credit card with a low rate. I laughed. :)

[SmileyRose]

15. I use plastic every single day.

But I have never once paid interest. Not once. I don't spend it on the plastic unless the money is already available to pay for the bill when it comes. I use the plastic for the rewards and for the ability to keep getting my checking account interest for another 25 days.

I use plastic every single time I buy gas because I love pay at the pump. I pay for groceries with plastic most of the time because I'm fortunate to have a "rough" budget for the month, not every single week and I don't want to make a trip to the bank AND the grocery nor do I want to pay the fee for the ATM at the grocery.

I was living well below my means in order to pay the house off early and to put money aside for retirement. However, my husband recently lost his $16 an hour job and his new job is at $11 an hour - plus we now have his disabled Uncle living with us and he costs more than he can bring to the party. So now I am living right AT means. I generally have about $10 left over at the end of the month when the bare necessities are paid.