Also consider this: if it’s possible that your payment will get lost in the mail, then it’s better to pay all your bills on your card, and just pay one bill through the mail rather than 10 through the mail. This will actually reduce your already rare chance of a payment being lost in the mail or online.

Finally, I am one of those people who thinks cash is much easier to spend than credit. I track all of my electronic transactions in Quicken, so a credit card transaction is definitely felt. Cash, on the other hand, is accounted for when withdrawn – after that it’s like free money. Much better for me to stick with the electronic methods.

Track the expenses like a check register and you’ll never spend more than you can pay off that month.

I did have one case recently where Discover didn’t apply a cashback reward to the bill appropriately, which resulted in fees, but they admitted their error and reversed the charges. Clearly, there is some risk here (especially with credit card sleaziness like “universal default,” where a late payment on one card counts as a late payment on all cards with all providers), but it is much tinier than this post suggests, at least for the category of people who are disciplined enough to pay off their balances monthly. The credit card companies call these people “deadbeats,” and I believe they make up over 40% of credit card holders (though only 25% of student credit card holders).

I am sorry that you feel the need to critisize others so harshly. Were you in CC debt? Is that the cause of the resentment? That others who might be more responsible than you and financially secure can use CC?

I’ve used CC for 12+ years and had no trouble. My mom told me it was not free cash. I used to track it like a checking account, only buying what I had the cash for. Still do. Idea is use a check register to follow your balance and all charges. Then you’ll never go over.

As for late fees, I just pay the bill the day it come in like all bills and I constantly check my balance like a checking account all the time. I reconcile my spending daily pretty much. So where’s the possibility for a late fee? If it doesn’t get there then I call and tell them what happened.

Also if it’s late then my electric, gas, and cable, and all other bills will be late too. And I’d better let my bank know since I use online billpay.

I am sorry that you are so resentful of others. Actually the site you linked does not show the 18% study. In fact the study is not found on the internet. Please post the actual study.

Dave Ramsey mentions it here: http://www.daveramsey.com/the_truth_about/credit_card_debt_3478.html.cfm

I wasn’t able to find the original article.

I have used credit cards for more than 12 years and always paid in full.

One can be a very responsible credit card user, if you don’t maximize cash back/miles/points rewards, you are not doing yourself a favor at all.

It is kind of like you refusing FREE money from the credit card companies when you purchase things.

Also, even those who are less responsible with credit aren’t always “diggers.” My friend, for example, uses her credit card to pay for books, etc. at college. Why? Because her job doesn’t pay enough to finance rent, groceries, and extra bills for school twice a year. Do you recommend that she quit school and stay at a dead-end job for the rest of her life instead of paying off the balance of her credit card over the 4 months of the semester?? I’d say THAT would be financially irresponsible!

Advantages of CC:
1. Free float: money earns interest in HYS for a longer time. This can be even more so with 0% offers, etc.
2. Rewards: you can get hundreds or thousands of dollars per year back in credit card.
3. Credit score improvement: having cards and using them responsibly helps your score over time. This will save you a lot of money over time if you have mortgages, car loans, or insurance. Having a bad score or no credit history could even get you denied a job or apartment rental.
4. Convenience: can pay one bill per month for almost everything.
5. Protection: credit cards offer better protection than carrying cash or using a debit card.

Are you going to try and convince me that I’m not using my credit cards responsibly?

One of my more popular posts on my blog attacked some ideas in a book pretty harshly. But one thing I didn’t do was attack people, or at least I tried not to. I think this was the mistake that was made in the post. It’s probably evident, but I thought I’d point it out anyway.

The thing is I tend to agree that it’s very, very difficult to use credit cards the same way you use cash just because it’s so easy to swipe a credit card. So, looking past the personal attacks, I’ll be more aware of that point.