mint Posted July 15, 2009 Share Posted July 15, 2009 Scooby, do you remember the glory days when you could do 0% on cash transfers or purchases for 3 to 6 months with no fee attached?And all the freebies, His n Hers watches and so forth just for taking out a card?I had at least 6 cards at one stage. Then, when the goodies dried up and I came to live in France, I gave them all up except the Nationwide and the Tesco ones.I use the Nationwide one for euro transactions (best rate with no fee for using) and the Tesco one for sterling transactions (clubcard points even though I have no chance of using up the points as I have no plans at the moment for any trips back to the UK; other than to buy a car, perhaps). Link to comment Share on other sites More sharing options...
NormanH Posted July 16, 2009 Share Posted July 16, 2009 [quote user="Scooby"][quote user="Iceni"][quote user="NormanH"]My main advice would be to avoid them if possible..the % rate is crippling.[/quote]Not if you pay your debts on time. [/quote]We put most of our monthly spend on credit card and clear it by direct debit each month. Why should I have money sitting in someone else's account when it could be sitting in mine? I have several cards and use different cards depending on the type of spend: one gives me free flights, one gives me good exchange rates, another gives me 1% cash back. All give me insurance. I also have a few store cards; taken out to get 10% of the bill and never used again. Debt is nothing to do with using credit cards - it's to do with self control (or lack of it).[/quote]Thanks for that . I'll just clear mine my direct debit then [:)]You don't think that debt has something to do with how much money you have 'sitting in your account'? Link to comment Share on other sites More sharing options...
velcorin Posted July 16, 2009 Share Posted July 16, 2009 Spot on NormanH about cards in France, and I'm very pleased I deal with corporate debt, and not consumer debt. it's a nigtmare. A couple of points about consumer debt levels. Firstly, UK consumer debt statistics are collected on the last working day of the month. Therefore, even if you pay of the CC balance on the 10th (or whatever) you are included in the debt figure. Secondly, France doesn't even collect data. Christine Lagarde thought about it last year, when she looked at credit revolving, but presumeably decided she was probably better off NOT knowing the real state, as the idea was quietly dropped. Our office gossip (so absolutly, 100% reliable[:)])would suggest all of them have got a least one, normally 2-3, but one women has 11. Well, better to be the biggest debtor in the graveyard than the biggest creditor. Where the myth about French financial prudence came from, heaven knows. Link to comment Share on other sites More sharing options...
Scooby Posted July 16, 2009 Share Posted July 16, 2009 [quote user="NormanH"][quote user="Scooby"][quote user="Iceni"][quote user="NormanH"]My main advice would be to avoid them if possible..the % rate is crippling.[/quote]Not if you pay your debts on time. [/quote]We put most of our monthly spend on credit card and clear it by direct debit each month. Why should I have money sitting in someone else's account when it could be sitting in mine? I have several cards and use different cards depending on the type of spend: one gives me free flights, one gives me good exchange rates, another gives me 1% cash back. All give me insurance. I also have a few store cards; taken out to get 10% of the bill and never used again. Debt is nothing to do with using credit cards - it's to do with self control (or lack of it).[/quote]Thanks for that . I'll just clear mine my direct debit then [:)]You don't think that debt has something to do with how much money you have 'sitting in your account'?[/quote]And how much you have sitting in your account is a result of that good old quality 'self control' NormanH Link to comment Share on other sites More sharing options...
minnie Posted July 16, 2009 Share Posted July 16, 2009 It's a case of living within your means. We're on very limited pensions and buy most replacement furniture and white goods on e-bay. We alos grow all our own veg. Never ever would we buy anything we couldn't pay for within one month... Link to comment Share on other sites More sharing options...
NormanH Posted July 16, 2009 Share Posted July 16, 2009 "And how much you have sitting in your account is a result of that good old quality 'self control' NormanH"It could also be to do with how much you inherited, or got from selling an over-priced house a couple of years ago.Never assume that money in the bank has anything to do with moral virtues.I Link to comment Share on other sites More sharing options...
NormanH Posted July 16, 2009 Share Posted July 16, 2009 [quote user="minnie"]It's a case of living within your means. We're on very limited pensions and buy most replacement furniture and white goods on e-bay. We alos grow all our own veg. Never ever would we buy anything we couldn't pay for within one month...[/quote]So if your car breaks down and is not reparable, you will do without, even if you live in the country? Link to comment Share on other sites More sharing options...
minnie Posted July 17, 2009 Share Posted July 17, 2009 If I couldn't pay for a car without going into debt I'd get on my bike! Link to comment Share on other sites More sharing options...
Scooby Posted July 17, 2009 Share Posted July 17, 2009 I have never inherited any money, neither am I sitting on the equity of a house sale or a lump sum on retirement. I work (very hard) - often 60 hours plus a week and I am sensible and careful with my money. I do that other good old fashioned thing called saving and only buy something when I have the money to afford it. Link to comment Share on other sites More sharing options...
Chancer Posted July 17, 2009 Share Posted July 17, 2009 He was referring to an onforeseen breakdown not the ability to buy a car outright in one month.People who use credit cards intelligently and pay them off in full every month arguably dont need them at all but most choose to have them as security against exactly the eventuality (and others) that Norman cited. Link to comment Share on other sites More sharing options...
Scooby Posted July 17, 2009 Share Posted July 17, 2009 If I genuinely need to borrow money I would never use a credit card to do so - it's insanity. Link to comment Share on other sites More sharing options...
Sprogster Posted July 17, 2009 Share Posted July 17, 2009 There are some very valid reasons why some individuals need to have a credit card, even if they pay their balances off in full every month.Firstly, you cannot rent a car without a credit card. The reason being is that unknown to you, the car rental company block off an amount against your card by way of security, whilst you are renting the car. You cannot do this with a debit card as unless there are funds in the connected bank account when payment is made at the end of the rental, a debit card provides as much security to the car rental company as a block of wood! Some car rental companies used to allow renters to pay instead an up front cash security deposit, but this has largely been discontinued.Secondly, in most countries you need a credit card to check in at a hotel, for the same security deposit reasons as mentioned above.Thirdly and most importantly in this current economic enviroment a British credit card offers statutory protection against the non delivery of goods, even if the supplier has gone out of business. It also offers far better protection against fraud in that you also have statutory recourse against a credit card company, whereas with a debit card the issuing banks have far less liability for misuse or non delivery of goods. That is why I never use my main bank debit card on the internet. Link to comment Share on other sites More sharing options...
Kitty Posted July 17, 2009 Author Share Posted July 17, 2009 This thread has been interesting. I am off to the bank this afternoon and so have been taking notes of what you have all recommended. Thank you for all your contributions.I have a credit card, which I pay off monthly, because I find that I am more disciplined about checking the validity of each transaction. With debit cards, when the bank statement arrives, I am not so careful at checking its accuracy. I also like the statutory protection afforded by credit cards. Link to comment Share on other sites More sharing options...
Scooby Posted July 17, 2009 Share Posted July 17, 2009 Exactly Sprogster! Link to comment Share on other sites More sharing options...
Chancer Posted July 17, 2009 Share Posted July 17, 2009 I found out the hard way about "pre-autorisation" on my debit card whilst hiring a van, the exact process was explained to on this forum (thanks again) but suffice to say I was unlucky enough to have enough in my account to cover the pre-autorisation of the caution but not enough to buy the fuel on the return journey [:(] even after returning the van and having the transaction reversed it took several days for my money to once more be available for me to spend.This could quite easily happen to a prudent (no credit cards) family on holiday abroad with their children having saved enouh money for the trip then finding themselves not being able to spend it after hiring a car for one day.I was on the point of giving up my one remaining credit card as I hadnt used it for so long, I agree that it is a bad way to borrow money but the interest free period is sufficient to démmerder oneself following an unforeseen breakdown etc allowing time to either transfer funds or arrange borrowing at a more favorable rate. Link to comment Share on other sites More sharing options...
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