Credit cards are losing fashion/fad and Debit cards are coming into existence. Why? Think about it for a moment for the ‘bottom line reasonS’.

1. CREDIT CARD WAS CREATED TO ENSURE THAT WE DO NOT HAVE TO CARRY A LOAD OF CASH IN OUR WALLETS WHEN WE GO SHOPPING. USE THE THIN CARD FROM OUR WALLETS, AND AT THE END OF THE 30-40 DAYS, PAY IT OFF.

2. DEBIT CARDS ARE WORKING SINCE IT ALLOWS PEOPLE TO DO WHAT THE CREDIT CARD WAS CREATED FOR. IT ALLOWS YOU TO PAY FOR A PRODUCT WITHOUT CARRYING A LOAD OF CASH IN YOUR POCKET. IN THIS CASE YOU DO NOT GET THE 30-40 DAY GRACE.

3. Credit cards were NOT created to carry a balance, unless it is an unforseen circumstance, but just like any feature-function created, there are people who use to for the WRONG purpose. Its just like the Atom Bomb, Guns, Prescription Meds, High-priced-name-brand-clothing etc.

Here is what I do:
1. I keep 1-2 cards constant for years, and do not change them.
2. I get new cards every 2-3 months that have significant points/rewards for getting the card. I use the benefits/points/rewards and then close the card.
3. I use the 0%APR to get the maximum cash out of a card, open a CD and pocket the difference. Use the Bill Payment system to do a Future Payoff so that accumulated interest does not get charged to me before the 0% promo ends.
4. I also carry ZERO balance on all cards – Payoff at end of billing cycle to prove my #1 Point in CAPS.
5. I NEVER use Debit cards unless I have to use them for certain places like Woodmans or Aldi or special stores where I go sometimes.

That’s all she wrote folks!!!!!

Smart Money Management, means USING the System to BUILD WEALTH in the Long Term. If the system USES YOU, you are the hunted, and not the hunter! And, that is the problem we have in the USA today. This does not happen in Asia where credits cards are available now, but people are just generally too smart to carry balances at 21%+ rates when the CDs pay 2% to 4%!!!!!! What a RIPOFF.

Kenny

I did call my credit card company and expressed my displeasure on this.

I do pay the balance in full every month.

KCDesi

People who are upset that their credit card company won’t “work with them” when they find themselves unable to pay should go look in the mirror for the source of their problems. They would have complained just as loudly if the credit card company had declined them, or cut their credit limit, or raised rates or fees to discourage use.

When you borrow money and promise to repay it under specified conditions, what is there to “work with”? They did their part – they advanced the money. Repaying it under the specified conditions is your part. If you want someone to “work with you” on the repayment of borrowed money, borrow from a friend or family member who can be expected to care about your situation, not from a collection of strangers who have legal duties to their stockholders.

The son is earning more than my brother in law, incidentally. Any child can end up in a situation where they either cannot or will not pay back a parent.

This has worked very well to our advantage.

Sure you can – any time the credit card provider makes a change to the terms of the agreement (not rate changes, but stuff like privacy policies and things like that; annual fees might apply too), you always have the option of saying “No, I do not accept these new terms” and they will cancel your account and allow you to pay off the balance under the old terms.

You can also request it yourself, but it’s usually a poor idea because they will likely hit you with an interest rate hike immediately in order to squeeze all the money out of you while they can. If it’s the only way to make yourself stop spending though, it might be worth it in the long run.

I use my credit card for some online purchases that require credit card payments, and then pay the account immediately. I have online access to my credit card account, so I just pay the card off as soon as the balance shows up. As a result, my card is “active” but stays with a zero balance pretty much all the time.

If my bank started charging me an annual fee for the use of the card, I’d cancel and get a card elsewhere, or negotiate the fee back to zero (everything’s negotiable, especially if you’re a good customer). The advantage, of course, si that I have enough cash on hand to make that an option – you can’t cancel a credit card while you still owe money on it.

I like that I can go to the movies, get a hair cut, dine out or buy some little luxuries without breaking out the plastic. This system has worked for me for six years, and I used to be a major credit card junkie. I had over $10,000 in CC debt when I declared bankruptcy, and I’m definitely a shopping addict. Someone like me has no more business buying on credit than an alcoholic has living above a bar.

As some other respondents have noted, this is not only about personal discipline though. The credit card companies are running rampant, ruining lives and constantly changing their own rules. They have become as untrustworthy as those legal loan sharks that offer cash advances till payday or against a car title. Consumers should not reward bad behavior, and the government should not allow opportunistic hijinks.

I can tell you a story about my own experience with a mega bank through which I had a credit card. I did not go hog wild with it, but I had a balance on it because of an emergency car repair. I had been whittling down the balance when my hours were cut at work and I had another financial set back (this happened during a time when we were trying to get back on our feet from my husband being unemployed. The credit card was solely for things like getting gas when it was two days before payday and there wasn’t enough in the account to pay cash. That’s how tight things were. When payday rolled around, I pulled out that amount in cash, but it in an envelope and hung onto it until I got my statement and used it to pay for it.). I worked out a payment plan with the credit card company so I could still pay on it and not default. But they purposely posted the payment on their books the day after the due date so they could charge me a $40 late fee.

Imagine if you walked into a brick and mortar store in your town and the business owner did this to you? Would you just put up with it or would you refuse to do business with them again? How long do you think they would be in business?

There is a much bigger picture than interest rates. As long as people tolerate these business practices in the name of “rewards” or convenience, these mega banks will continue to screw everyone over. The only way to send a message to them is to stop using their open ended credit and pay cash. In spite of their arrogance, they still depend on us for their business, and it’s about time they realize this.

2 cautionary notes, however: I do know several people who have paid off credit cards, quit using them for additional purchases, and the company has cancelled the cards. Even though the person had intended to keep them for occasional or emergency use.

So, DON’T cancel cards until you have your readily liquid assets (i.e., savings acct or money market) built up in your emergency fund to a generous level.

I agree with “get a grip” @31 – that at least for Suze O this is a protest against the banks’ blatant flaunting of their power. She has promoted responsible use of credit in the past.

It kind of stinks that I have to push cards on people in order to do well at my job. My performance review and my annual raise depend on me making my sales numbers. I’d much rather help people make good decisions instead of handing them tools to get themselves in trouble.

John DeFlumeri Jr

Also, saying these rate increases don’t affect you is wrong. They are the bear trap waiting for you to misstep due to job loss or medical issues. They are the obstacle those still in debt and trying to get out of it have to overcome. You think if you were struggling with a budget and they jacked your rate up another ten percent that it wouldn’t hurt you? You may personally be okay, but is this kind of monopolized increase good for our communities, during high unemployment, when people are trying to get back on their feet?

I’ve personally canceled cards because I want them to know I don’t appreciate being financially punished for being fiscally sound. This will affect my FICO scores, potentially my ability to get good insurance rates, the best mortgage rate if I refinance, the best student loan rate for my children, etc. So saying this has no effect because you pay your balance off is missing the bigger picture IMHO.