Comments on: 10 Reasons Why I Love My Credit Cards http://www.askmrcreditcard.com/creditcardblog/10-reasons-why-i-love-my-credit-cards/ Latest Credit Card News, Reviews and Information Fri, 19 Mar 2010 16:50:16 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Tim http://www.askmrcreditcard.com/creditcardblog/10-reasons-why-i-love-my-credit-cards/comment-page-1/#comment-44300 Tim Sat, 08 Dec 2007 19:29:56 +0000 http://askmrcreditcard.com/creditcardblog/10-reasons-why-i-love-my-credit-cards/#comment-44300 I disagree. If I have cash, it's gone. With cc's I always get a receipt so I know exactly what I bought. I also buy within the limits of what I budgeted. If you keep track of what you spend and what your limits for expenses are, you are not going to overspend simply by using a credit card. I disagree. If I have cash, it’s gone. With cc’s I always get a receipt so I know exactly what I bought. I also buy within the limits of what I budgeted. If you keep track of what you spend and what your limits for expenses are, you are not going to overspend simply by using a credit card.

]]> By: Jesse http://www.askmrcreditcard.com/creditcardblog/10-reasons-why-i-love-my-credit-cards/comment-page-1/#comment-43785 Jesse Tue, 04 Dec 2007 01:48:01 +0000 http://askmrcreditcard.com/creditcardblog/10-reasons-why-i-love-my-credit-cards/#comment-43785 All that you say is true, however I'd like to point out one thing that never seems to get talked about. When you pay by credit card you will spend more money overall. Why? Because there's no "reality" to paying by CC. You just slide the card and you're done. Psychologically it's as if you've gotten your stuff for free. On the other hand, if you pay by cash there's a certain "pain" and hard reality that goes along with it. You have dollars in your hand and you physically give them to someone else and so you feel the loss. You spend your dollars and they're gone. Not so with a CC. You can spend, spend, spend. The other part of this is that people forget how much they're spending with a CC. They think they're keeping it all in their head--a rough estimate of their spending so they don't spend too much. But you can never remember all the things you bought with your CC. All of those coffees, and quick trips to the convenience store add up quicker than you think. Consumer reports did a study on this phenomenon and found that people will spend an average of 40% MORE every month if they use a CC instead of paying with cash. That's huge! I think this is one of the biggest factors in our American habit of debt and a negative savings rate. Bad stuff for a person individually and in the long run bad for the economy of the country. All that you say is true, however I’d like to point out one thing that never seems to get talked about. When you pay by credit card you will spend more money overall.

Why? Because there’s no “reality” to paying by CC. You just slide the card and you’re done. Psychologically it’s as if you’ve gotten your stuff for free. On the other hand, if you pay by cash there’s a certain “pain” and hard reality that goes along with it. You have dollars in your hand and you physically give them to someone else and so you feel the loss. You spend your dollars and they’re gone. Not so with a CC. You can spend, spend, spend.

The other part of this is that people forget how much they’re spending with a CC. They think they’re keeping it all in their head–a rough estimate of their spending so they don’t spend too much. But you can never remember all the things you bought with your CC. All of those coffees, and quick trips to the convenience store add up quicker than you think.

Consumer reports did a study on this phenomenon and found that people will spend an average of 40% MORE every month if they use a CC instead of paying with cash. That’s huge! I think this is one of the biggest factors in our American habit of debt and a negative savings rate. Bad stuff for a person individually and in the long run bad for the economy of the country.

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