Do people still use on credit cards?

Question

In this economy, are people still using credit cards to provide them vacations, electronics and other luxury items?

I am certainly NOT debt free, but I have not used a credit card in 13 months. It was a hard adjustment, but now paying cash for everything and having to save a bit for even a $50 luxury item seems like the most logical way. I can't imagine living how I used to and all that debt racking up.

I am also single with one income, so no one else to rely on.

Anyone else out there leaning towards the no more credit card way of living? If you have already, what has been your biggest adjustment/cut back?

I personally would like to see more of the world, but if I can't pay cash, I'm not going anywhere. That's my one gripe.

Answer 1

Credit cards are not the problem the way people use them is.

I have 3 that I use every month for every day things and pay them off in full every month before the due date.

Last year they paid me almost $1,000.00 in cash back rewards for using their money for free.

Answer 2

The credit card debt in both USA and Canada is worse than it has ever been.  Never have I seen so many advertisements from credit counselling agencies with lines like:  "Learn how to be able to afford dating again!"  Scary but true.

Doing things the cash way is very similar to the credit card way believe it or not with one exception...you get the interest/dividends.  I found that enrolling in a mutual fund monthly purchase plan worked best.  I pay the same monthly amount I used to pay on a loan but it goes into MY mutual fund plan and generates interest from the money market fund and dividends from the equity ones.  I now pay MYSELF.

Answer 3

I envy you!  Sometimes you have to use CCs to pay bills.  

Answer 4

I don't use my credit card unless it's for a major purchase, and only then because of the protections it offers, i.e. if there are any disputes, warranty protection, etc.  I pay it off right away.  

However, I do use my debit card for almost all purchases.  It has the convenience of a credit card, removes the money immediately from my account, and gives me a record of my purchases.  

Some years ago I got myself into major credit card debt, and it was a long and difficult time to get myself debt-free.