Thread: Managing credit

I pay cash whenever I can. I do NOT carry credit cards with me, except when I have a definite purchase in mind, AND I always pay the full balance off every month. The thieves don't get any interest from me!!!

My credit card has $2000 limit, which it rarely approaches. It is always paid off in full prior to any interest charges. I usually only use it for online purchases / bill paying.

Your title says it all - I live on a very modest pension and have two credit cards. On one I pay for everything and pay it each month - the other has a high limit and is for emergencies and basically does not get used.

I have not paid one cent in interest on the cards for about 5 years as I manage my credit and find the convenience great.

I have set up my finances on a spread sheet with the credit cards linked to my bank accounts. When I spend on my credit card the impact on my bank accounts at the end of the month is obvious straight away - if spending is going to sent the bank balances into the red - it is red on my spreadsheet and I can either decide not the spend or move money - the result in either case is a conscience decision.

Managing your credit is key - credit cards are great if you can do it.

Garry

My parents went thru the great depression. They survived. From them I learned: Never have a credit card. Never live above your means. If you need something, save for it , go without until you can afford it. You do not need to live in a mansion, a small shack can be a better family home. Don't be envious of your neighbours possessions, put your time & money into family, not trying to keep up with others. I believe we have moved away from core values, Bob

1. Transfer all your credit card balances to the lowest interest rate you can find.
2. Get a pair of scissors (possibly acquire these on one of your credit cards for old times sake).
3. Drive the scissor through both of the cards.

You are in a bad space if you are not paying the full balance at the end of the month. You are living beyond your means quite simply.

Regards
Andrew

I despise credit cards and personally don't see any need for them. If you don't have the money in your own bank in my mind you can't afford it anyway.

Im the opposite,


Wife gets paid weekly, Me monthly.


Her wage paid straight into high interest acc.


We use 1 credit card for everyday use. 55 days interest free.


All $$ spent is checked at end of each week ( ie woollies shopping receipt etc ), then checked against acc online. At the end of each month card is paid out in full. Never paid interest in 10 yrs.


We get a flight and a couple nights accom each year on the points gained on our C/Card.


You need to be very vigilant with your spend, no difference to any other system, and we never buy anything other than normal essentials.


If we need to buy say a TV or something we have a rule it has to be agreed by both of us.


We allocate a personal spending amount each week and if I want to buy something then I save the $$ from this or I don't get it.


Cheers Ean

I am pretty good at a lot of things, but managing money isn't one of them. Despite earning a good quid, I found myself up to my neck in it and I was struggling to sort it all out.

In the end, I sought professional help - no different really than getting a Tradesman in to do some work on you house if you don't know how, or taking your Landie to a mechanic because you can't spin spanners.

Biggest problem we have is that we both get paid monthly - on the same day... Great first week, awefull last week...

Once I figured out I was a DIY disaster with my money and made the move, I'm all sorted. For the record I'm with 'My Budget' and find how they help and get you back on track is fantastic. They have a whole support system, and really help you stay on track.

I've only really just begun this journey and have a way to go to get myself sorted, but what I'm doing now is very different to how things have been and I should even have some savings again in a few months, and my credit cards payed off by Christmas.

Oh, and I have no affiliation to My Budget...