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That depends entirely on your personal situation, the details of which you did not give us. If you can't control impulse spending or have outstanding credit debt - yes, get rid of it to force yourself to quit, and pay a portion of the renaming balance every month to keep your credit score from tanking.
If you don't have outstanding debt and can control your credit usage, then keep it. Using a credit card responsibly is a very good thing - it helps you build credit and boosts your credit score. When the statement comes, pay the balance IN FULL. The simple way to never have to worry about paying interest is never gaining interest in the first place! Plain in simply: If you can't pay the ENTIRE balance EVERY month, I wouldn't bother with a credit card.
As for myself, I use it only to put gas in the car, pay it all off at the end of every month, and that's pretty much it. The balance usually around 100 dollars or less, so it's pretty easy to pay off.
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Experts say, however, that subliminally you are more likely to spend money this way than using cash. For instance if you go out to dinner with $100 in your wallet, maybe you end up spending $60 ... but if you know from the start you're just putting it on the credit card you end up spending $75. You can still say "I paid it off each month, so it doesn't cost me anything in interest or fees" but you are still technically spending more money.
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If you keep your expenses down and pay off your card every month you do not pay interest. You do get help from the credit card company if you become entangled in a quarrel with the merchant. Some even give limited guarantees. So if you avoid interest it's good to use a card.
But some people can't handle cards. If you can't pay what you owe each month you immediately are charged usurious interest rates. Many people become trapped and can only pay the interest.
We don't know which kind of person you are.
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I use a credit card for most of my out-of-pocket expenses, like gas or lunch or online purchases. The last in particular, I have a separate low-limit card I use just for online stuff so that if my card number gets jacked there won't be as much damage if a thief tries to cash it out.
If you're talking about trying to pay off your debt on a credit card, I'd definitely try to do that, fees and interest are part of what makes the debt business so attractive to banks and creditors.
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I had to enroll in a program with a credit counselor 3 months ago because I had racked up way too much credit card debt and I was going crazy trying to keep up with the minimum payments. The fact is, there isn't a single credit card company out there that has your best interest at heart. They are a business and want your money, and that's why they will jack up your interest rates and tack on fees at any chance they get.
Have a credit card handy for emergencies, but for everyday, regular purchases, don't use it. In fact, consider putting your credit card away in a safe deposit box so you aren't tempted to use it when you are out doing your regular shopping.
One new option that my bank now has is an interest-building checking account. There are certain stipulations, for example you have to use your debit card at least 10 times a month, but you should check with your bank and see if they do anything similar.
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Still, use cash as much as possible. Just don't forget your receipt.
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Answered Question
January 16, 2009 03:08 PM
Should I get rid of my Credit Card?
Should I pay cash or use my Visa Debit card and get rid of the credit card?
Interesting Question?
Yes (1)
No (1)
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| January 16, 2009 05:02 PM |
If you don't have outstanding debt and can control your credit usage, then keep it. Using a credit card responsibly is a very good thing - it helps you build credit and boosts your credit score. When the statement comes, pay the balance IN FULL. The simple way to never have to worry about paying interest is never gaining interest in the first place! Plain in simply: If you can't pay the ENTIRE balance EVERY month, I wouldn't bother with a credit card.
As for myself, I use it only to put gas in the car, pay it all off at the end of every month, and that's pretty much it. The balance usually around 100 dollars or less, so it's pretty easy to pay off.
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Other Answers (6)
January 16, 2009 03:30 PM
For me it depends entirely on whether I'll pay the card off each month. If I know that to be the case beyond a shadow of doubt, then I certainly do use it, and collect whatever points my particular card has to offer. Experts say, however, that subliminally you are more likely to spend money this way than using cash. For instance if you go out to dinner with $100 in your wallet, maybe you end up spending $60 ... but if you know from the start you're just putting it on the credit card you end up spending $75. You can still say "I paid it off each month, so it doesn't cost me anything in interest or fees" but you are still technically spending more money.
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January 16, 2009 03:53 PM
It depends upon your self control. If you keep your expenses down and pay off your card every month you do not pay interest. You do get help from the credit card company if you become entangled in a quarrel with the merchant. Some even give limited guarantees. So if you avoid interest it's good to use a card.
But some people can't handle cards. If you can't pay what you owe each month you immediately are charged usurious interest rates. Many people become trapped and can only pay the interest.
We don't know which kind of person you are.
Permalink | Report
Reply
January 16, 2009 03:53 PM
It depends on your spending habits and what you're trying to do I'd say. I use a credit card for most of my out-of-pocket expenses, like gas or lunch or online purchases. The last in particular, I have a separate low-limit card I use just for online stuff so that if my card number gets jacked there won't be as much damage if a thief tries to cash it out.
If you're talking about trying to pay off your debt on a credit card, I'd definitely try to do that, fees and interest are part of what makes the debt business so attractive to banks and creditors.
Permalink | Report
Reply
January 16, 2009 03:53 PM
In terms of consumer items, if you don't have the cash to pay for it, don't buy it. I had to enroll in a program with a credit counselor 3 months ago because I had racked up way too much credit card debt and I was going crazy trying to keep up with the minimum payments. The fact is, there isn't a single credit card company out there that has your best interest at heart. They are a business and want your money, and that's why they will jack up your interest rates and tack on fees at any chance they get.
Have a credit card handy for emergencies, but for everyday, regular purchases, don't use it. In fact, consider putting your credit card away in a safe deposit box so you aren't tempted to use it when you are out doing your regular shopping.
One new option that my bank now has is an interest-building checking account. There are certain stipulations, for example you have to use your debit card at least 10 times a month, but you should check with your bank and see if they do anything similar.
Permalink | Report
Reply
January 16, 2009 05:01 PM
In todays world, Cash is King. However, I suggest not to get rid of your credit card entirely. Keep at least one for emergencies and for online purchases. Using a debit card online will leave you less protected if you get to dispute an unauthorized charge cause your money gets deducted right away from your funds. A credit card however gives you some protection because it goes into a clearing process and helps you out if you get into a dispute with a merchant. One additional benefit is you also get extended warranty on a purchase with a credit card. It's true with Amex. I can't speak for the others. Definitely pay off your balance every month. Still, use cash as much as possible. Just don't forget your receipt.
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If you have good self control and a large credit limit, a credit card can be useful when you need to make an unexpected purchase. Also you often have benefits like some free travel insurance when you buy an airline ticket, and if there is some dispute such as what you paid for doesn't show up, you'll be better if you paid by credit card.
The plus with a debit card is that you can't spend what you don't have, and as all the purchases are taken out of your bank account as you go, you're not as likely to be shocked by how much you've run through during the month.
So if you need help with controlling your spending impulses, or just keeping track of money, getting rid of credit cards can be a very good thing.
Also, as Shakespearegeek says, you can go further and mostly use cash over even a debit card.