budgeting & using CC for paying bills

iVillage Member
Registered: 03-09-2006
budgeting & using CC for paying bills
7
Wed, 03-15-2006 - 3:28pm

I know we're all trying to be debt free, especially from CCs, but does anybody here use a CC just for paying normal monthly expenses?

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Wed, 03-15-2006 - 3:59pm

we use a rewards card for groceries, gas, and whatever misc bills accept credit cards. You must be very disciplined to do this because it is very easy to go over board. We had a couple of fuzzy months but it was when my mom died and those months are fuzzy anyway. We started doing this last may and have earned over $500 so it is working for us...

HTH!

iVillage Member
Registered: 03-27-2003
Wed, 03-15-2006 - 5:23pm

I do this and it has worked for us. We have our satellite, cell phone and regular phone paid on the CC and then I pay it off each month. I also pay for gas and other items. Here's what helps it work for me-

1) I have a notebook and I write all expenses down subtracting from their budget category
2) During the last 3 months, I've started paying the CC's every Friday online so I feel the impact immediately.

I do have reservations in that the last 2 months I've gotten to the end of the month and haven't had enough to pay off the CC so we're clearly STILL living above our means. But, I'm pinpointing the problem (medical) and so I know I need to increase that category.

Taleyna

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 03-15-2006 - 6:01pm

I've read articles that show that when folks pay with cc's, they pay anywhere from 12% to 30% *more* than they would have otherwise spent if they were paying cash.

All my best,
Danni

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Wed, 03-15-2006 - 6:24pm
I can agree with Danni IF you are not disciplined in your spending. We had a strict budget n place before I got the rewards cards and I continue to stick to that now. So it is the same as when it was cash. That is why you have to be disciplined about it. It's not really a gimmick if you aren't paying interest(we only have once) AND you are making money.. They are just counting on you not being able to pay off what you charge.
iVillage Member
Registered: 03-27-2003
Wed, 03-15-2006 - 7:20pm

I have read those figures too....I think so much depends on the individual-are you good at shopping with a list? Do you have set amounts that you plan on spending? Are you going to use the CC for set bills (phone, cable, etc.) or variable expenses? The biggest things I tend to charge are the set bills, gas and medical. I don't see how those could vary that much you know? I'm certainly not trying to talk anyone into using a credit card-I think there are huge pitfalls but it's like so many things where I think it really depends on the individual. I do think at the point in my life where I have enough cash flow that I shop a little more, etc. I would focus even more on using the debit card. Right now, money is tight enough that I really keep track. Does that make sense? I know CC's got us in big trouble when we first moved here, had the new house, new baby on the way and hadn't adjusted to DH's new salary. We thought we had money and spent way too much. At that point, I'm sure 15% isn't high enough! But now, I shop differently-for example I went to Wal-mart almost 3 years ago while pregnant with DS. I would roam the aisles a little bit, give into DD's whining about a snack, find something I "had" to have for the house and was stunned when I checked out to find out the total Cha-ching...here came the plastic. Yup...I'm sure I spent more than if I had had cash in hand.

Today I went to wal-mart with my list on a sticky note and my budget number implanted in my brain. I had 5 items on my list and knew exactly how much I would not go over for all except 1 item. I'm confident that I didn't spent 15% extra today because I used a CC. My DD asked for several items, in each case I asked her to look at the list and see if they were on there. Of course, now she's caught on and usually asks if we can put them on the list for next time LOL

Sorry this got so long-it's just a statistic I'm always interested in....how did they determine it? What types of shopping did it include? Was it a self-report of the intended amount followed by the actual amount or what?

Taleyna

iVillage Member
Registered: 02-12-2006
Wed, 03-15-2006 - 7:36pm
I've found a system that works for me with using credit cards. I keep track of our monthly spending on an excel spreadsheet, and when we've reached our budget, we stop charging. We pay it off every month, pay no interest, and get about $600 a year cash back from the rewards cards. It can be done, it just takes a lot of monitoring.
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iVillage Member
Registered: 03-09-2006
Wed, 03-15-2006 - 7:55pm

Thanks for all the good advice.