I have two cards; one credit and one debit. The credit card is exclusively used for emergencies and internet purchases, and that's it. The debit card is used for everything else. My parents and I have an arrangement where they pay my debt and then I pay them back (I'm a senior in college), so that I get good credit and still say cash smart.

I have a decent car and enough saved up in savings that I can pay cash for my next car, and turn around and start saving up for the next major purchase. I'm going to love just writing those guys a check, and not having to worry about taking out a loan.

Once I get my Masters and a steady job, my next goal will be to save up for a house. That, or start my own business.

I have one card, with a $500 limit (set by me) they'd love to give me thousands to spend, but that's insane! I use my card all the time and always pay it off EVERY month.

doing so has given me a great credit score and also the low limit keeps my demonic impulse buying side in check...I wasn't always so smart though...I'm 33 and it took me a long time to learn my lesson about credit cards. I got into some serious problems in my early 20's because I just didn't know any better.

you can watch it online....

http://www.pbs.org/wgbh/pages/frontl...s/credit/view/

amazing expose... I don't believe in credit save for big ticket items like House, Cars, and education...

debt free from credit cards...

I'm only using a Amex Delta card to get Delta Miles... which paid for our Honeymoon tickets to Europe last year... Working on Austrailia now.

I am also one of those who pays off my credit card every month. However we shouldn't be surprised that so many people run up so much dept that they can't keep up with it. After all that's the way the government works.

Someone said that if you can talk the bank into loaning you enough money then you will soon own the bank. Maybe our goal should be to run up a tremendous amount of debt and live the good life before we die. Works for Uncle Sam.

Hi Boo,

Question: What is the "Rule of 78"?

ya know...i have a friend that is single, making $50K a year in an area where FAMILIES average $35K a year, does not have to worry about rent or associated bills...and is in debt up to her ass bc of credit and credit cards...her reasoning is that she makes minimum payments on everything every month...the debt always stays roughly the same bc the interest adds up to about the minimum payment, so really, she is just giving money out every month to pay for the interest....

that scares me...she says she pays about $300-550 a month in interest alone...and that's not including whatever she pays for her car payment (about $350 total for the car payment), but the 300-550 is just interest on credit cards or store credit...

Thanks Cynthetiq! :thumbsup:

I just started using a credit card, but solely to boost my credit rating.

I only use it for gas, and pay it down $20 every month..

So for instance, I started at $100 debt, then if I charge $20 in a month, it will be $120, and I pay down to $80.

Next month, I'll pay down to $60 (regardless of how much I owe, always $20 less each month), and the next down to $40.. When I get to $0, I intend to start at $100 again and start over.

I use my debit card for all purchases, and my parent's reluctance to buy on credit has rubbed off on me, and I'm grateful. If I can't afford something I don't buy it, period.

When I do buy gas or groceries on the card, the money get puts aside right away so that I just send them the money when the invoice arrives.

I want to develop a credit rating "just in case," and I think my method will allow me to do that without getting in over my head. I just recently opened up a checking/debit account and really enjoy keeping track of everything in my balance book, because it's a learning experience for me.. And a worthwhile one.

This kind of thinking scares me too. I wonder what kind of recession we would have if a majority of credit card users would stop buying and work to pay down their balances. I saw on the news that the average credit card holder is $8000 in debt and growing. What would happen to the economy if all those goods and services went unpurchased? More importantly, what will happen when/if a great many people can no longer handle the dept?

It took 5 years for this to come true. Interesting.

anything else lurking in the old dusty crystal ball?

for the record, i was working on miles for Australia, I now have enough miles for 4 business class tickets to Australia via the rewards programs.