credit card debt

so im guessing credit cards arent bad as long as u have the money, or the minimum payment to give them???? what do u guys think of the "same as cash for a year or 6 months deals" with credit cards....some stores like best buy, if say u baught something that cost over 299.99$ u get no interest for 6 months same as cash....are those good deals?trey555555

Credit cards are great for reward programs, but only if you pay them off completely every month. Otherwise, the cost of carrying the debt will exceed the rewards. Your best bet is to always know how much money you have as disposable income, and to never spend more than that, but to use the card as often as possible. In that scenario, it's like spending cash, but accumulating reward points in doing so. But you need to draw up a realistic budget to ensure you don't exceed your disposable income and fall into debt.

If you're managing your finances properly, you shouldn't have any use for interest reduction or delayed interest 'deals,' because you shouldn't be carrying any debt on your card. 

[QUOTE="retic666"]400 dollars ain't s*** try 15000 groovdafied

If that's really your debt amount, I'm really sorry.

Yea alot of people finance vehicles and really that much isnt uncommon now add 2 $800 credit cards limit, It starts to add up. But if you are not late on a payment it looks good on your credit. 

pc gamers spend alot on their pc's..and some of us are compulsive game buyers...are any of u in credit card debt????by how much???? i myself owe around 400$ in credit card debt...would u consider that alot?

trey555555

Rofl, 400 is nothing. I easily end up paying over $400 for credit card bills every month. On the other hand I have a $20,000+ student loan I gotta start paying back.

[QUOTE="trey555555"]

pc gamers spend alot on their pc's..and some of us are compulsive game buyers...are any of u in credit card debt????by how much???? i myself owe around 400$ in credit card debt...would u consider that alot?

DiaperMan2

Rofl, 400 is nothing. I easily end up paying over $400 for credit card bills every month. On the other hand I have a $20,000+ student loan I gotta start paying back.

lol yeah, i just worry alot lol....i keep thinking credit card companys are gonna screw me over somehow....

how does interest work??? what if i have an interest rate of 9.9% ?????? how do i know how much they are adding to my monthly bills if i make minimum payments?trey555555

9.9% is very low. If that's the case, consider yourself lucky, as most cards carry in the high teens and into the 20's.

Take you balance, add 9.9% to it, subtract how much you paid that month, that's your new balance. Rinse and repeat. 

Anyone who has credit card debit is stupid. I'd never use a credit card. Idea of credit is idiotic since most people don't seem to understand credit means yous till owe money. It's not actualy money.

 Just use a debit card and only use money you all ready earned.

I only owe money for college. I'm never going to own a credit card. 

Anyone who has credit card debit is stupid. I'd never use a credit card. Idea of credit is idiotic since most people don't seem to understand credit means yous till owe money. It's not actualy money.

Just use a debit card and only use money you all ready earned.

 

I only owe money for college. I'm never going to own a credit card.

PlayedThemAll

Credit cards are a great thing but require a lot of planning.  I have three (only use one, though), and I charge all of my food, gas, most everything else.  I do not suggest doing this, though.  I managed to pay my way through college (without parents' help) and move and buy a new car without ever accruing debt (paid the car off before driving it off the lot).  You have to understand money before getting into something like this, and I highly recommend paying the card off each month.  It doesn't matter if you are paying 9.9% interest or 24.9% interest, it is all too much.  You can get a money market account that pays 4 to 4.5% interest, and just use that once a month to pay the credit card in full, so instead of paying interest to someone, you let someone pay you.

 Be very careful with debt.  I know people that take seriously 25 years to pay off student loans and get out of the credit card debts that they built up in college.  I feel sorry for people like that because they can generally not afford to buy a house or a new car until after their children have finished college.

I think I owe around $2000 right now. If it wasn't for my HDTV, I would be pretty much debt free right now.-ZeRoHouR-

 ... which indicates that you shouldn't have bought the HDTV when you did.  Just think - had you waited just a little while, you wouldn't have had to pay any interest to own your TV.

I think I have like 3.25 on my credit card. I dont like using credit cards because they are just so easy to rack up a bill and forget about it...ice_radon

 It's easy to forget about a bill? :?

i never forget about a bill...and i check my credit cards every day incase someone tries to steal from them....but i dunno...my dad said its not bad if u owe like 300$ and u pay it off on minimum payments...it builds credit....as long as u dont go overboard on a shopping spree

i never forget about a bill...and i check my credit cards every day incase someone tries to steal from them....but i dunno...my dad said its not bad if u owe like 300$ and u pay it off on minimum payments...it builds credit....as long as u dont go overboard on a shopping spree

trey555555

Keeping it totally paid off is even better for your credit.  Just make sure you let them charge you before you pay it (i.e. you should receive your paper bill or electronic statement), then pay it all before the deadline.  If you pay only minimum, you'll need to pay interest on the rest, and that's just throwing away money for no credit bonus. 

I owed 100k, but it turned out to be only 10k because of the credit card company makign a mistake.

jk

As a side note, being in debt doesn't mean you are poor, or don't know how to handle your money.LukeAF24

 Naturally, almost everyone will go in debt at least once (generally when purchasing a house), but if you are living on your own and spending each paycheck before you get that paycheck, then you have some problems.  That's not to say you have caused those problems because many people struggle with working through college or have an emergency that was out of their control, but many people think that they are good with money when they are constantly a few months' wages in debt from buying games, computer parts, ski trips, a new car when their old one was fine, etc.

Basically, if you can stay out of debt, do it.

As a side note, being in debt doesn't mean you are poor, or don't know how to handle your money.LukeAF24

This is true. It's what you spent the money on that matters. Very few people will be able to buy a house up front. But what makes you good with money as opposed to bad with money is knowing what your limits are. A person who purchases a $500 000 home when he or she can't afford it is not good with money, despite the fact that most people will have a mortgage at some point in their lives. Similarly, if you spend a lot of money on frivolous entertainment and run up your debt as a result, that demonstrates poor money management.

People get themselves into trouble because they purchase too many non-essentials too quickly, or because they spend too much on essentials when cheaper alternatives exist, and that ends up costing them a heck of a lot of money in the long run, not only due to interest, but due to losing money or spending money that could be invested for significant growth over a long period of time.

As a side note, being in debt doesn't mean you are poor, or don't know how to handle your money.LukeAF24

[QUOTE="LukeAF24"]As a side note, being in debt doesn't mean you are poor, or don't know how to handle your money.Kalel559

 Why would you say that?  What makes America different from some other place?  Anytime someone has a steady income and can manage their debt based on how much they make, they are not poor money managers.

using other people's money to buy stuff for yourself (debt) is a wonderful thing, if well managed... 

allow me to explain... we just passed through an extended period of the lowest interest rates and inflation rates this country has experienced since the great depression... this was a perfect opportunity to load up on (low interest) debt... an opportunity that will likely never come again (to the extent we just experinenced)... just six months ago I transferred about $6000 onto a 3.99% fixed interest (until paid) CC, but today, I can buy a 24-month CD with a 5.99% interest rate... so, in that window of opportunity, I was not only able to buy stuff using other people's money, I'm able to make money using other people's money (I'll net $122 on the deal)... ain't this country great !!!

a few simple rules apply... 1) select cards with the lowest variable rate you can, but never fall for a teaser rate (one that starts low, but jumps up in a relatively short period of time), 2) don't be afraid to transfer debt from one variable rate CC to another low fixed rate CC (again, don't fall for a teaser), 3) always use your CC to buy assets (besides most cards double the mfg warranty) and limit spending on "non-assets" (such as food, entertainment, gas, etc - for these use a debit card)...

and a side note, paying your credit card purchases off during the grace period, does nothing positive for your credit rating (as some have suggested)...

to answer the OP's question... you don't want to know how much credit card debt I carry - it would make 99.9% of you drop a load... but for me its manageable and a pittance compared to my net worth...

using other people's money to buy stuff for yourself (debt) is a wonderful thing, if well managed... 

allow me to explain... we just passed through an extended period of the lowest interest rates and inflation rates this country has experienced since the great depression... this was a perfect opportunity to load up on debt... an opportunity that will likely never come again (to the extent we just experinenced)... just six months ago I transferred about $6000 onto a 3.99% fixed interest (until paid) CC, but today, I can buy a 24-month CD with a 5.99% interest rate... so, in that window of opportunity, I was not only able to buy stuff using other people's money, I'm able to make money using other people's money (I'll net $122 on the deal)... ain't this country great !!!

a few simple rules apply... 1) select cards with the lowest variable rate you can, but never fall for a teaser rate (one that starts low, but jumps up in a relatively short period of time), 2) don't be afraid to transfer debt from one variable rate CC to another low fixed rate CC (again, don't fall for a teaser), 3) always use your CC to buy assets (besides most cards double the mfg warranty) and limit spending on "non-assets" (such as food, entertainment, gas, etc - for these use a debit card)...

and a side note, paying your credit card purchases off during the grace period, does nothing positive for your credit rating (as some have suggested)...

to answer the OP's question... you don't want to know how much credit card debt I carry - it would make 99.9% of you drop a load... but for me its manageable and a pittance compared to my net worth...

 

1fast6

yes i agree with this guy....i heard that paying off your credit debt before the grace period was a waste....credit companys want u to owe a little of money to see how responsible a person is with their monthly payments....why will someones credit even go higher if one always pays off the whole bill when it comes in????? theres no point in that....u have to at least owe some money, little but not alot....

As a side note, if you ever do get behind on your payments, say 7 months or more, don't try to catch up on them unless the creditor is actively seeking the collections. If you bring up an old debt it updates onto your credit report and counts as a bad mark.

Now, if you're planning for the long term, like you want to get a loan in a year or two, you can go ahead an pay it off because your credit score will be back up after that time.

I beseech you to read an old blog entry I wrote about credit cards. If you're paying anything less than the full amount of your credit card bill, you should not be using one.  Credit cards can be great, but they are dangerous in your situation.

I wish you the best of luck, whatever you do. 

I'm over 1M in debt. $400 bucks isn't that much.LukeAF24

Really? Im assuming you have the means to pay it... lol 

using other people's money to buy stuff for yourself (debt) is a wonderful thing, if well managed... 

allow me to explain... we just passed through an extended period of the lowest interest rates and inflation rates this country has experienced since the great depression... this was a perfect opportunity to load up on (low interest) debt... an opportunity that will likely never come again (to the extent we just experinenced)... just six months ago I transferred about $6000 onto a 3.99% fixed interest (until paid) CC, but today, I can buy a 24-month CD with a 5.99% interest rate... so, in that window of opportunity, I was not only able to buy stuff using other people's money, I'm able to make money using other people's money (I'll net $122 on the deal)... ain't this country great !!!

a few simple rules apply... 1) select cards with the lowest variable rate you can, but never fall for a teaser rate (one that starts low, but jumps up in a relatively short period of time), 2) don't be afraid to transfer debt from one variable rate CC to another low fixed rate CC (again, don't fall for a teaser), 3) always use your CC to buy assets (besides most cards double the mfg warranty) and limit spending on "non-assets" (such as food, entertainment, gas, etc - for these use a debit card)...

and a side note, paying your credit card purchases off during the grace period, does nothing positive for your credit rating (as some have suggested)...

to answer the OP's question... you don't want to know how much credit card debt I carry - it would make 99.9% of you drop a load... but for me its manageable and a pittance compared to my net worth...

 

1fast6

I am that 0.01% of which will not drop their load, please, share with me. lol 

Credit cards are a great thing but require a lot of planning.  I have three (only use one, though), and I charge all of my food, gas, most everything else.  I do not suggest doing this, though.  I managed to pay my way through college (without parents' help) and move and buy a new car without ever accruing debt (paid the car off before driving it off the lot).  You have to understand money before getting into something like this, and I highly recommend paying the card off each month.  It doesn't matter if you are paying 9.9% interest or 24.9% interest, it is all too much.  You can get a money market account that pays 4 to 4.5% interest, and just use that once a month to pay the credit card in full, so instead of paying interest to someone, you let someone pay you.

 Be very careful with debt.  I know people that take seriously 25 years to pay off student loans and get out of the credit card debts that they built up in college.  I feel sorry for people like that because they can generally not afford to buy a house or a new car until after their children have finished college.

drgrady

 Probally indepth, but how do you avoid paying 25 years for student loans... please share, im 16 and Im willing to listen. 

[QUOTE="drgrady"]

Credit cards are a great thing but require a lot of planning.  I have three (only use one, though), and I charge all of my food, gas, most everything else.  I do not suggest doing this, though.  I managed to pay my way through college (without parents' help) and move and buy a new car without ever accruing debt (paid the car off before driving it off the lot).  You have to understand money before getting into something like this, and I highly recommend paying the card off each month.  It doesn't matter if you are paying 9.9% interest or 24.9% interest, it is all too much.  You can get a money market account that pays 4 to 4.5% interest, and just use that once a month to pay the credit card in full, so instead of paying interest to someone, you let someone pay you.

 Be very careful with debt.  I know people that take seriously 25 years to pay off student loans and get out of the credit card debts that they built up in college.  I feel sorry for people like that because they can generally not afford to buy a house or a new car until after their children have finished college.

Puiumami

 Probally indepth, but how do you avoid paying 25 years for student loans... please share, im 16 and Im willing to listen. 

It is simply poor money management.  However, there were some outside factors that played into it lasting so long.  First, the people in mind not only had the student loans (which you can generally get at a lower rate than other loans, and many have a 0.0% interest for the first few years), but they ran up more credit card debt than they could afford.  They made the minimum payment each month but kept adding debt.  Then when they finally realized that there was a problem, they incured some hospital bills and had some children.  Then the guy finally got out of college, and the woman stopped working.  Despite the guy having a good job, it was a single income family, and they could barely pay off the interest on their debt.  Between paying rent and providing for a family and saving for the children to go to college, they actually couldn't pay off most of the debt until their oldest child got scolarships for college.  Then they were able to divert some more money to paying it off.

see right now i own three of my own businesses....hopefully they will get bigger as i get older....and have a decent income at my age..i make the same amount college graduates make....so im happy about that....i dont wanna go to college so i can owe so much money afterwards....me and my fiance dont want a big house in the future or any expensive cars....youll live only once....and im not fixing to spend my life working...if u save 500$ a month in your savings, by the time your around your 50's your be really wealthy and u can retire at a young age...thats my plan....i dont want a great life....just a good one..trey555555

Good for you.  College is not a necessity, but it can really help for some people.  However, student loans can be paid off in a couple of years with proper management.  So long as you are happy with your businesses, then I congratulate you.

[QUOTE="1fast6"] and a side note, paying your credit card purchases off during the grace period, does nothing positive for your credit rating (as some have suggested)...trey555555

yes i agree with this guy....i heard that paying off your credit debt before the grace period was a waste....credit companys want u to owe a little of money to see how responsible a person is with their monthly payments....why will someones credit even go higher if one always pays off the whole bill when it comes in????? theres no point in that....u have to at least owe some money, little but not alot....

I have to disagree.  While I have heard that you can build up your credit by making minimum payments, that just doesn't make sense to me.  I know credit companies want you to make smaller payments because that's how they make money, but I'm not going to pay them to give me a better credit rating.  I have only missed paying my CC off in full one month, and my credit rating has steadily risen.  My credit limit is now 16 times what it was 4 years ago, and when applying for rental properties, I've had landlords going well out of their way to get my business in areas where there was greater demand for property than supply.  Basically, don't believe that you have to draw out your payments to build credit.  If you do, switch to a different CC.

pc gamers spend alot on their pc's..and some of us are compulsive game buyers...are any of u in credit card debt????by how much???? i myself owe around 400$ in credit card debt...would u consider that alot?

trey555555

i really wanted this new synth....but i guess ima just pay off my bills then :(

i pay half the bills in this house....and i buy really expensive things with cash...and when i dont have cash...like now....i use my credit card to buy now and pay later :D....im always broke...but i earn alot...im just an compulsive buyer.....i owe 400$ but they are getting payed off on next week....but i really want this synth for 300$.....grrrrr.....