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In Reply to: RE: Buying on time. posted by tmsorosk on August 08, 2012 at 05:33:19
I've never borrowed for stereo equipment. I HAVE bought a plasma screen and a laptop on "bill me later", the plasma was paid off before any interest was due. The laptop didn't fair so well, but fortunately it wasn't that expensive a purchase, so the total interest was not that much.
Credit cards have a been a problem in the past, usually for taking cross country trips to visit relatives, those just add up way too fast.
Fortunately I have been paying them off and just have one left, there are some things that are just easier to pay with on a credit card. There are some places that won't take a debit card, it has to be a real credit card.
You're much better protected with a credit card, vs a debit card. Using a credit card for travel is not a bad idea.
But Abe, is there a piece of gear you've heard, that you would have done anything to own.
...and I've bought items on time including the use of my credit card. But that was decades ago and I no longer do that.
If I can't afford to pay cash I don't buy it.... Or I'll use my credit card for the travel mileage perks then pay it off with a cash transfer from a savings or checking account.
is that if you carry even a penny of balance, the double digit interest is based upon the average daily balance , not the amount left. What credit card companies want you to do is pay the minimum amount (on time) each month for the rest of your life.
I charge most everything I can to get the cash and travel perks and never carry a balance. I have zero debt including home and vehicles.
Back in '81, I took out a low fixed rate bank loan for about $3k to buy an amp and transformers for my stats. No way I was going to put than on a credit card.
I use my credit card for perks then pay it off before any interest accrues. Our cars are paid for, one a 2007, the other a 2012. The only debt I have is the home mortgage but it's mostly been paid down well below the current market value of the home. And our savings and other investments are greater than the mortgage debt.
My point was, you are better protected against fraud with a credit card vs a debit card making a credit card a better choice for travel and some other scenarios like large purchases.... provided you are disciplined enough to pay it off quickly. Debit card fraud can wipe out your entire account. Personal liability is much reduced with a credit card.
Sounds like you've gone down a similar path, but are younger. It's really nice once the house is fully paid off.
Remember the movie Catch Me if You Can ? I heard the real life character Frank Abagnale Jr. talking on NPR a few years ago about fraud. His recommendation? Avoid checks and debit cards. Charge everything you can so that the bank takes the risk!
Yes, fun movie! But I wasn't aware of and haven't read anything about the real life character. Good advise.
I was not so disciplined in my youth with credit cards. It was almost a game to me to see how much of a credit line I could amass with credit cards. I signed up for nearly every credit card offer.
Not that I ran them all up but I had one card with a rather large balance on it. And then I lost my job. It took me a very long time to dig out of debt. I learned my lesson, the hard way.
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