Check out the chart below, in less than 2 years we have charged $15,408.77! I probably have cashed in well over $500 in cashback rewards but it seems a bit irresponsible to charge that much money to a credit card. Keep in mind we paid Citi close to $15,000 in the last couple of years.
We still have a balance with Discover from all our May purchases. I will post that amount after I get the statement. I will also go ahead and cash in all my rewards, probably for gift cards.
I think I've said this before, if your thinking about using credit cards, think again, read this blog. They are not worth it! Stick to cash only and avoid debt.
HS
6 comments:
Hate to say it but I will anyway: "I told ya so." Been there, done that, spent too much for stupid rewards. Paying for things directly brings amazing simplicity to dealing with life and money. On top of that there's a new credit card bill (no pun intended) going through Congress that will probably eliminate reward programs completely. The debit card has vastly gained popularity because look at how well credit has worked for most of us? Good luck to you and your wife giving up the plastic.
I guess that does 'seem' pretty excessive -- when you put it up as one big number. I was raised very anti-credit card when I was growing up. And even though I had a card since early 2000, it was November of last year before I ever used one.
In that time, I have only charged $3,185.56 and it was only for things already budgeted for. I really haven't gotten anything back with the rewards program because I don't spend a lot of money. That is fine with me. When I get something, I'll get it.
At this rate, in 2 years, I will spend about $12,750 on the credit card. That is not a whole lot less than what you have spent. I would worry about this but in the years leading up to this point, I have averaged about that much when using my debit card and am comfortable with it as long as it stays within my set budgets. That is why I said your amount seems excessive. It would really depend on how much of that was for expenses that you'd already budgeted for and would have had even if you used cash.
As for the bill from Congress. If it causes the companies to end the grace period or add an annual fee, I am just going to go back to the debit card. I am tolerating my use of the card now but won't tolerate it if it will start costing me money.
I just want to add that, in absolutely no way, did I mean for my last comment to sound like I don't support your decision to stop using the card. I think using a credit card or not is a personal decision. And if you notice a history of spending with credit cards that you don't feel comfortable with, I completely agree that you should stop using them.
I am getting out of debt of a different sort (Student Loans primarily) and have started reading a lot of blogs like this to stay motivated. I find it a little odd that most of the blogs are by people leaving the use of credit cards and I'm just starting their use myself. That is basically all my previous comment was meant to express.
It is really true that you will spend more with a credit card than with cash...
I have an Amex Blue Cash card, my husband wants me to use it for food and gas (we get 5% cash back), but I'm sticking with cash. I can SAVE more than 5%...
I hate the cards too but I am not going to charge any more on them and am just going to stop using them. Harder said then done, but I need my credit score to either stay put or increase and closing it may hurt my score.
I guess credit cards are pretty alright as long as we know how to control our spending mate.
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