I know from experience these are bad news. However, how many people keep one around for emergencies? I know I have one for emergencies and had to use is this month unfortunately for a dog surgery. Anyone else have experiences like this?
I do have one set aside for a "just in case" situation. I've had it for two years and it hasn't been touched. Lord knows they credit company is trying their hardest to make me use it though.
I use credit cards primarily. Be careful keeping one JUST for emergencies. Sometimes having a line of credit and not using it will lower your credit score. Even if you buy a pack of gum and pay it off, activity is good.
Yes, I do have a credit card with available funds quietly set aside for emergencies. I am in the process of growing an emergency fund but it is nice to know that the credit card is there for back-up. I was in a situation a few years back when someone I trusted let me down...and the credit card literally saved my life, I could pay doctors bills with it at that point in time. So, i am very grateful and think it is a good idea to keep it there for emergencies. My mind may change on that...but right now, I think it is a good thing...as long as you are in charge and responsible.
Yes, I do have a credit card, but it's for more things that emergencies. It's next to impossible to rent a car without a credit card. It's also easier to book a hotel room with a credit card. These things can be done with a debit card, but the car company/hotel usually holds funds for a deposit.
I only use credit cards. If you know how to use them and can pay them off in full, it's actually rather foolish to NOT use them. The important part is to treat a credit card no differently than cash or a debit card and you'll never have any issues. In fact, you'll save/make $ in the long run. Rewards credit cards are the way to go. Most offer at least 1% on purchases while some (Chase Freedom, Discover More) have 5% rotating categories. If you use your credit card(s) on purchases you have to make or would make regardless, you're saving money as opposed to writing a check or using a debit card. Don't let preconceived notions ruin your chance to save/make money by using some common sense when it comes to financing.
I watched a very close friend of mine practically spiral into the deepest depression due to credit card debt. And the sad thing was, most of the charges that she was having troubles paying was on a card that she cancelled after it had been stolen. Unfortunately, she didn't cancel the card before someone apparently refurbished their house with big screen TV's and stereo/surround sound equipment, furniture and high end appliances. Her marriage almost dissolved and they eventually had to file bankruptcy. I have never had a credit card and have no intention on ever attaining one. I work darn hard and have a bank account and a debit card, so between that and cash, I have no need for it.
I don't use credit cards at all. Its easy to say that you will use it for emergencies only, without defining what an emergency really means to you. Its always best to save up a little money for emergencies. That way, your not regretting your choice later.
No I don't have credit cards, I don't believe in the actual credit cards anymore. Prepaid is ok and bank debit cards are ok, but I don't believe in supporting credit card companies. I can see in an emergency they may come in handy, but many people are in debt because of them.
You are SPOT on. People aren't in debt because they used credit cards but because they ABUSED credit cards.
Yes and no. Some people had credit cards in good standing for years and suddenly lost their jobs and could not pay for them. I prefer not to owe anybody money, I use cash or I don't buy it because you never know what tomorrow brings. I have actually been a victim of credit card companies (and yes I was paying them and never had more then $200 on my balance.) I was paying them on time and things happened on their end. I sued and got money back and also got it fixed off my credit, but it took almost 3 years and my other credit card increased my rate to 30% and added a yearly fee because of the problem the other company caused which was honestly beyond my control. They changed my address for some unknown reason. I stopped getting statements and I kept calling them about making a payment. They refused to talk with me because I couldn't verify my address since they changed it. I wrote them letters and everything, still have no idea why they changed my address to a town I never heard of. The judge even asked them where this town is and they couldn't answer, nor could they give an answer as to why it got changed. They agreed to being in the wrong years later. I cut them all up and cancelled them. I also know somebody who had the best standing that you can have with a credit card company and they all of a sudden doubled her interest rate. She asked them why and they couldn't give her a straight answer at first. Came down to because she wasn't a risk and was paying it off before fees could occur so they were increasing their rate. She cancelled because the company has any right to increase fees and take away rewards when they feel like it. They also probably won't tell you, but you will see it on a bill when they do it. I won't be a part of supporting that personally. Sorry for the rant, I do get a little defensive when people automatically assume that it was all the consumer abusing the cards. There are more incidents of the credit card companies pulling shady business then the public realizes until it happens to them.
I also only use my card for my regular monthly purchases and paying it off completely every month. I have never paid a fee this way. It takes discipline though. When you pay your card off every month they are more pet to increase your limit. Its important not to charge more than you can pay off.
I have one credit card that I keep around for emergencies only. I do not use this card for any other reason. This card is so that I can deal with an unexpected travel expense, a medicla emergency, etc. The rules that govern the use of the card are written down and kept with the card. If I am in a quandry about consitutes an emergency, I consult the list. I also pay off the balance as soon as the statement comes in.
This is a great question. I used to have many credit cards. But my husband and I had way to much debt. We began snowballing a pay off system to pay off all our cards. We now have none! What we did before we started paying them off is we built up fast an emergency savings to use if something went wrong instead of using a credit card each time it was used in emergency we would stop snowballing credit debt and re focus on building emergency savings fast then go back to paying off debt again. This method works!
We also have one credit card that we use. More often than I'd like to admit, we use it to tide us over until the next paycheck if unexpected expenses arise. For example, we had to do this last month when our printer broke and our A/C started leaking. We always pay off the balance as soon as possible though.
In my opinion, most emergencies are going to happen when you are out and about...rarely will you have the opportunity to go home and get the card when you really need it. So, I keep it with me...but it is understood that this card is not for use for frivolous purchases and is in no way to be used for anything other than a dire emergency where there is no other avenue for payment. I keep the card in a special place in my wallet and I do check to make sure that it's still there and valid from time to time...but that's it.
We have an emergency fund (a la our Dave Ramsey class ), but we do still have one credit card with a fairly high limit we keep around in case of an emergency. When I say emergency, I mean a life or death sort of thing. We are working on paying off some debt, but as soon as we can build our emergency fund to an amount I am comfortable with, I most likely will cancel our credit card. In a perfect world, I won't need to rely on having an emergency card because I will have the cash in the bank (and easily accessible) in case of an emergency.
I do have 2 cards for emergency but I make sure that I don't use them at all for my usual shopping. It takes great discipline and control over yourself to keep the credit cards lying idle but you must ensure that they remain available for emergencies. Credit cards can be a double edge sword so you must tread with caution while dealing with them.
I suppose keeping a credit card for emergencies sounds like a good idea if it's not going to be used for anything else. The only reason I have a credit card is because PayPal doesn't accept South African debit cards. It's possible that there are people who can control their spending and get away with out paying a cent of interest but my personal opinion is that they are a disaster waiting to happen. I only spend money that I have loaded on the card. Spending money you don't have and then working just to pay extra interest doesn't sound like a good idea.
I'm still in the process of paying off all my cards. But, as I pay them off, I lock them away and don't use them. I now have a few cards each with 0 balance just sitting there. It can be oh so tempting to go in there and use them, but the peace of mind that I no longer have to make those payments is just so much greater!
