Life without plastic
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| Thu, 01-06-2005 - 11:39am |
Okay, it's been over six months since I've completely destroyed every little plastic card in my wallet (including my check card). In the past six months I've been able to shave off over 1500$ of my $6000 CC debt. I've also accumulated over 5000$ in savings/ emergency fund. I'm doing pretty well and happy with my progress (although I spent a little more on Christmas then I would have liked..okay 500$ more)...but it's no biggie, because I got a big bonus from my weekend job that made up for my slight overspending...
I only spent cash this year for Christmas, which I haven't done since I was a teenager. I cashed a couple paychecks from my weekend job, spent my tip $$, and I withdrew 200$ from my checking account. I had a couple instances while shopping that made me a little peeved...have things changed so much in the past five years that cash or personal checks have become an absurd way to pay for things???
I had to return a computer program I bought my boyfriend, because I realized I bought the wrong one. The store I bought it didn't have the one I needed. When I went to return it the kid at the counter asked for my credit card, without even looking at the recipt. I said I had paid cash. He looked at me like I was nuts. It stupid thing cost 200$. With tax $211.99. He said he couldn't give me the cash, and that I'd get a check in the mail in 7-10 days, which I still haven't seen yet...two weeks later.
I went to buy the right program at another store, and because I didn't actually get my cash back I had to write a personal check. The store had the Check 21 thing set up....
They asked for 2 forms of ID...and had to call the check in. My check was declined for "undisclosed reasons." I had a line of angry people behind me to top it off. Totally enraged, I went to my bank. The woman there said my account was fine and that there are "glitches" in the system. She suggested that I get a check card or just just credit cards for purchaces....
I don't want to use a CC ever again. I don't even want a check card. I like only spending cash. I always have an emergency stash in my glove compartment in case I need gas or food and can't get to the bank. For any big emergency I do carry a blank check in my wallet.
My family and friends think I'm nuts....
Just needed to vent a little....
Sarah

It is frustrating and ridiculous! I hear you. But if you think that's bad, just wait till you try to borrow money to buy a house and they see you haven't had a credit card in x number of years. See ya 'round, they'll say.
I know it's stupid, but if you suspect you may some day want to borrow money for a house, you will probably have to go ahead and bite the bullet and get a credit card again. Hopefully after so long paying cash for everything, your good habits will prevail and it won't cause you any problems.
The usual advice, and what makes sense to me, is to use the credit card for some regular expense--groceries, gas, whatever--each month, and then pay the bill in full immediately when it comes. If you budget this correctly, it shouldn't cause you any problems, but will help you establish a steady credit history that you'll be glad of if you ever go to buy a house.
I always think it's funny the looks on peoples' faces when you pay cash for big-ticket items. I used to waitress, so I could have enormous stashes of cash on hand when we wanted to, without even going to the bank. I remember paying for something large (don't remember what it was off-hand) with bills, and the cashier having to ask her manager if she could accept cash for that! LOL
Now we mostly use a debit card, with cash behind it. But I understand wanting to avoid that if you've had trouble with it in the past. I personally find it easier to fritter away cash than with a debit card, because with the debit card I know I have to go account for it in Money later; with cash it's already accounted for and I feel like I won't miss it. So I try not to have actual cash lying around too much.
Anyway, thanks for the chuckle. And good luck.
Heather
Sarah,
I feel the same but because I want to buy a home in a few years I need to have a cc. What I've done is set up routine payments of my cc (gym membership, insurance and cable) that are fixed payments that are due the same day every month. Then I set up direct payment with my checking account so that my cc is automatically paid off. This way I'm using my card every month, it's paid off completely every month and I never have to carry the card with me and be tempted to use it.
I've had this set up for almost a year and a half and my cc has lowered my rate twice. Since I pay it off every month it doesn't affect me now but it should look good and help when I go to get a house and mortgage. My rate was 19.75%, then 16.50% and is now 11%. I can't wait for it to be under 10%.
Lynne
I physically destroyed them. The accounts are still open. I just don't want to use them. I plan on keeping them open, or at least one or two, after they are all paid off. I'm cancelling all my store CC's once they are all paid off. I have 2 Visa's that both have 2500$ limits. I'll keep the one with the lowest interest and cancel the other.
Right now I have good credit...My FICO score is somewhere around 700
I also have student loans, which do appear on my credit report...so hopefully that will help me build up good credit too....
For right now this is the best way to control my money. I only have about 50-60$ in cash for food and gas for a week. Other than that I don't really spend money. If I want to get my hair done or something, I just save up left over money until I have enough to get what I want. It's a pretty good system...so far anyway. ..I know I will run into trouble when I want to buy airline tickets, or stay at a hotel...but hopefully all my CC's will be paid off the next time I want to go on vacation..(I haven't left NJ in over 5 years...not counting going to NYC for work)...
When I learn how to live without credit cards...I'll let myself use one...only if I pay it off every month....
It really ticks me off that you have to play the CC game for a while if you want a car or a house...
It was even hard for me to get student loans, because I started college young and didn't have any credit history yet....
Oh..I know what you mean...
I had to return a present last week, and because we were going to use the return to get Fi shoes instead, I did not take my wallet with me. No cards whatsoever.
They couldn't process the return. It had to go back on a credit or debit card...or I could get store credit. I had to go to Fi's work, get his credit card, have it returned onto that, and he bought his shoes using his card.
I've paid cash for a lot of things...last year, my bank branch closed, and I refused to buy new cheques, so I didn't have cheques (still don't), and I paid rent in cash. My uncle (who owned the house) thought it was hilarious! my whole family was joking about me running a grow-op. (not possible, I can't even keep an african violet alive, which is why my family thought it was funny).
Edited 1/7/2005 10:59 am ET ET by firstamendment
She could try a store card or gas card for a while to start (they're usually pretty easy to get) and within a few months would be able to apply for a regular card. She should also be able to get a card through her bank or at the very least, start with a secured card. That's awesome that she was able to get to the age of 33 without a car loan, student loans or credit cards--I didn't think that was possible in this day and age!
Akirez
It annoys me that credit cards is an almost inescapable part of being a member of society today. I remember when I was in college people from the CC companies would come to the campus and solicit CC applications almost everyday. They made it so easy to get sucked into the trap.
I know I can't totally abandon the idea of credit or debt, because someday I'm going to want to buy a house and I'll need good credit. I wish I had been taught when I was younger how to be responsible with my CC's. I seriously think that teenagers should be educated about CC's and debt in high school, so that when they get to college it's easier for them to be responsible with credit and avoid spending hundreds or worse....thousands of dollars of unnecessary and totally avoidable interest and fees. Maybe they should lump "debt-ed" in with health class or something...not everyone's parents teach them this stuff....mine certaintly didn't....
if I knew back then what I know now....I would have probably avoided this mess....