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drowning in debt?
Care to discuss...
Care to discuss...
Australians owe $35 Billion on credit cards
- Thread starter krisbarry
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hmm 
Mint,this is one Australian who doesnt even own a credit card,divs.are so much better I`ve never understood why someone would buy a bargain on credit and then pay 25%over God knows how long to pay it off.My philosophy is if you cant afford it now,wait.If you dont have the money now,wait.And if a shop wont give you a discount of at least 3%which is how much its going to cost him or her to process your credit payment go somewhere else if possible,
I`ve never understood why someone would buy a bargain on credit and then pay 25%over God knows how long to pay it off.My philosophy is if you cant afford it now,wait.If you dont have the money now,wait.And if a shop wont give you a discount of at least 3%which is how much its going to cost him or her to process your credit payment go somewhere else if possible,
wayneL
VIVA LA LIBERTAD, CARAJO!
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visual said:Mint,this is one Australian who doesnt even own a credit card,divs.are so much better
Agree! Chopped mine up 23 years ago after a particularly silly and impulsive purchase. Though some sort of cash card seems unavoidable these days. A Visa debit card works well for us.
wayneL
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visual said:
Well....yeah, they don't miss you do they
But its mainly the business stuff for us too, internet, data, subscriptions etc.
Julia
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Nothing wrong with having a credit card if you simply use it because it's convenient and pay it off every month, and therefore don't pay any interest. I don't spend any more just because I have a credit card.
Julia
Julia
True,however you do pay the fee for just having the card.
However many people you`ll find treat credit cards as a loan from a benevolent acquaintance and thats how the 35 billion happened.
On a personal note I know that if I had acredit card I would spend even if I didnt have the money ,so in my case its prevention rather than cure.
However many people you`ll find treat credit cards as a loan from a benevolent acquaintance and thats how the 35 billion happened.
On a personal note I know that if I had acredit card I would spend even if I didnt have the money ,so in my case its prevention rather than cure.
3 veiws of a secret
3 veiws of a secret
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Well I was told to get a card (which I did Mastercard with a limit of 500 bucks) when visiting the USA ....no card no go.It's primarily to do with locking you into the system,I had loads of cash,but not welcomed when hiring a car,I had cash when I entertaining friends -SORRY NO CHANGE !!.....also I was looked at as if I was some drug pusher with heaps of cash!!!! When insisting I was going to pay cash,I got the feeling whats a matter with this guy,has'nt he got credit ,is he a bankrupt.........
A credit card is a wonderful tool. It is only bad when one doesn't know how to use it properly. Advantages include:
1. Safety. No need to carry cash as credit cards are widely accepted. Also, if you are unlucky enough to get into a dispute with a retailer about a purchase (tends to happen more often online), you can work with your credit card provider to get your money back.
2. Security. For the above reason, buying online using a credit card is probably the most secure way to do it. The alternatives are bank transfer or moneygram like Western Union, which provide little to no chance of getting your money back if you get scammed. If your card is stolen, a quick call to the provider will sort it out. Usually they won't even charge you if the thief has already used the card.
3. Delayed payment. I find that it is better for my cash to sit in offset accounts while I wait for my credit card bill.
4. Emergency funding. For those rare emergencies, access to funds through credit comes in very handy. Similar to having a LOC against your house for emergencies.
As Julia said above, as long as you pay your credit card bill in full each month there is no problem. As for annual fees, there are credit cards out there that have no annual fees (ex Virgin) and for those that do, you can use the rewards program to pay for the fees. In my case, I like using the points as frequent flyer miles. It is only when you lose control of yourself and use the credit card as a tool to spend more than you can afford that it becomes dangerous.
1. Safety. No need to carry cash as credit cards are widely accepted. Also, if you are unlucky enough to get into a dispute with a retailer about a purchase (tends to happen more often online), you can work with your credit card provider to get your money back.
2. Security. For the above reason, buying online using a credit card is probably the most secure way to do it. The alternatives are bank transfer or moneygram like Western Union, which provide little to no chance of getting your money back if you get scammed. If your card is stolen, a quick call to the provider will sort it out. Usually they won't even charge you if the thief has already used the card.
3. Delayed payment. I find that it is better for my cash to sit in offset accounts while I wait for my credit card bill.
4. Emergency funding. For those rare emergencies, access to funds through credit comes in very handy. Similar to having a LOC against your house for emergencies.
As Julia said above, as long as you pay your credit card bill in full each month there is no problem. As for annual fees, there are credit cards out there that have no annual fees (ex Virgin) and for those that do, you can use the rewards program to pay for the fees. In my case, I like using the points as frequent flyer miles. It is only when you lose control of yourself and use the credit card as a tool to spend more than you can afford that it becomes dangerous.
Prospector
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I am also a happy credit card holder - gold of course
I always pay off the amount each month, and put all business expenses through it. Just redeemed some rewards points for a snappy new digital camera! I couldnt do without it but of course, I am very disciplined with it I also take advantage of the interest free time limit and do most of my bigger purchases the day after the statement cut off so I get 6 weeks to pay it back.
And if you travel it is a must!
I also think the amount of debit on credit card has more to do with people using the credit card in conjunction with the mortgage offset account - ie keep the money from salary etc against the loan debt for as long as possible, put all expenses on the credit card, and pay it off on the due date. It actually makes sense to me unless you spend more than you should and cant pay it all off! All about discipline really.....
I always pay off the amount each month, and put all business expenses through it. Just redeemed some rewards points for a snappy new digital camera! I couldnt do without it but of course, I am very disciplined with it
I also take advantage of the interest free time limit and do most of my bigger purchases the day after the statement cut off so I get 6 weeks to pay it back.And if you travel it is a must!
I also think the amount of debit on credit card has more to do with people using the credit card in conjunction with the mortgage offset account - ie keep the money from salary etc against the loan debt for as long as possible, put all expenses on the credit card, and pay it off on the due date. It actually makes sense to me unless you spend more than you should and cant pay it all off! All about discipline really.....
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:iagree:
I have had my credit card for years now, have hardly paid any interest at all. Usually pay it off in lump sums, not just the minimum payment
I use it for all my business expenses and some personal. cyrrently have 30000 points which would get me about $150-200 david jones vouchers for example.
Some people say 'wow, a couple of hundred for $30000 spent'. I just say that its better then nothing, Im getting this for free just for using my credit card, which by the way is mostly used for business. which obviously means that my customers pay for it!
Over the years I have got several yearly subscriptions to magazines, store vouchers etc. like I said, just for using my credit card for purchases which I have always had the money for anyway.
I have also recently struck a deal with my credit card so that I no longer pay the yearly fee plus I will get 1.5 points for every dollar spent.
It comes down to how good you are with your money. I have mates that are hopeless, maxed out credit cards, store cards, loans etc. I also think it has alot to do with the way they were bought up. Were they taught about money? probably not. or if they were then they were taught the wrong things/habbits.
I have had my credit card for years now, have hardly paid any interest at all. Usually pay it off in lump sums, not just the minimum payment
I use it for all my business expenses and some personal. cyrrently have 30000 points which would get me about $150-200 david jones vouchers for example.
Some people say 'wow, a couple of hundred for $30000 spent'. I just say that its better then nothing, Im getting this for free just for using my credit card, which by the way is mostly used for business. which obviously means that my customers pay for it!
Over the years I have got several yearly subscriptions to magazines, store vouchers etc. like I said, just for using my credit card for purchases which I have always had the money for anyway.
I have also recently struck a deal with my credit card so that I no longer pay the yearly fee plus I will get 1.5 points for every dollar spent.
It comes down to how good you are with your money. I have mates that are hopeless, maxed out credit cards, store cards, loans etc. I also think it has alot to do with the way they were bought up. Were they taught about money? probably not. or if they were then they were taught the wrong things/habbits.
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Didn't know where to put this but this seemed like an okay location...
I'm wondering when the government is going to start cracking down on the banks which have obviously been conspiring to limit having any credit cards with the $0 annual fee.
Just noticed on a NAB credit card international transaction fees we're going to go up to 3.5% that's absolutely ridiculous. When I went to go cancel the card and go get no annual fee version I noticed there weren't any. I couldn't find a single NAB credit card which didn't have an annual fee. Westpac the same. CommBank the same. ANZ the same. They have obviously conspired to do this using their market dominance and control of the labor liberal parties.
I'm wondering when the government is going to start cracking down on the banks which have obviously been conspiring to limit having any credit cards with the $0 annual fee.
Just noticed on a NAB credit card international transaction fees we're going to go up to 3.5% that's absolutely ridiculous. When I went to go cancel the card and go get no annual fee version I noticed there weren't any. I couldn't find a single NAB credit card which didn't have an annual fee. Westpac the same. CommBank the same. ANZ the same. They have obviously conspired to do this using their market dominance and control of the labor liberal parties.
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