You make some excellent points. I always see spending on credit to be like drinking too much. Sometimes there’s no way to deal with it except to give it up all together.

And the only way to enjoy it is to be in control of it rather than allowing it to control you.

I’m the exception to the studies. I’m always aware of my cash position and I rarely know what my CC balance is until I pay it off at the end of the month. I don’t abuse it because I manage my cash. I’m always thinking in “cash”.

I have learnt things the hard way as far as credit cards are concerned, now I use only my debit card, as long as there is money in my account, I can use them, but regardless whether it is credit cards or debit cards, mostly we tend to spend more.

Gather together all of your credit card bills and add up the amount that you owe. Get a loan and pay off your credit card bills. If you think that you may still use your credit cards, you may want to hide them away so that you reduce the temptation to use them. As you rightly mentioned, consolidate and pay off your cards. Studies have shown that people who don’t use credit cards, spend less.

Excellent post mate, very detailed and informative.

Take care and Cheers.

That’s a great point. Purchase protection and the other little incentives that CC issuers give you like cash back, etc are all things you can take advantage of.

Coop,

Can’t say I blame you. Like I said, there are two camps. You really have to be in control of your own finances to not abuse credit. But it’s so easy not to think about it.

And whether you’re pulling in $10k or $10MM a year, doesn’t matter. You have to be aware of what you’re spending and on what. There are plenty of broke millionaires out there.

Hey Jon, thanks.

I love Chicago. Beautiful city; been there twice, but they were both hurried visits and I didn’t get a chance to see but a small bit of it.

And the SOBevent sounds pretty cool. I’m sure you’ll bring some great blogging wisdom back. Just leave that Mastercard in your hotel room before you go for a stroll down Michigan Ave! lol

“You always want to be aware of your cash position.”

totally agree, i always try to “mastercard” what i buy only if i know i’ll be able to pay it at the end of the month. There are certains things though i can’t resist (i’m attending the sobevent.com in chicago in a week, and put it on my credit card…) but i’ll pay it off in no time, asap.

I usually try to stick with cash, unless i’m buying something online, but then again, i try to use my paypal account as often as possible (confirmed bank account)

Now why is my bank giving me a 5 grand limit on my mastercard? i asked for a $1500 limit lol

but it’s proven that you spend 17-19% more when you using credit cards rather than cash, so i’ll just stick with cash and emergency funds

- Martin Reed

Well I wasn’t sure what I felt like writing tonight. Thanks to both you and Nate, I found something …

So thanks for the inspiration!

// Andreas Bard