Comments on: More Reasons To Cut Up Your Credit Cards http://www.moneycrashers.com/more-reasons-to-cut-up-your-credit-cards/ Personal Finance Blog, Your Guide to Financial Fitness Fri, 10 Feb 2012 00:29:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymoushttp://www.moneycrashers.com/more-reasons-to-cut-up-your-credit-cards/#comment-31950 Anonymous Mon, 27 Jun 2011 04:05:00 +0000 http://www.moneycrashers.com/?p=591#comment-31950 The idea that people without credit cards are "less responsible" is a nice banking industry bit of propaganda... the reality is that many people without credit cards (or with fewer credit cards) have higher net worths and are far stronger financially than those who have credit cards. Credit cards are a form of short-term debt with high interest rates. If you need or require short-term loans in order to function, you're not managing your finances properly, period. Further, all the propaganda about "being responsible" by using and paying off credit cards is hilarious. Credit cards have built-in costs, including the transaction fees charged to the merchants, which increases the price of every item sold by between 3% and 10%. That means that even if you're "responsible" and pay off your short-term loan every month, you're contributing to a trend that results in a 3% to 10% interest rate being assessed on everything that's sold. Such a HUGE fee is not "responsible" in any sense of the word. The idea that people without credit cards are “less responsible” is a nice banking industry bit of propaganda… the reality is that many people without credit cards (or with fewer credit cards) have higher net worths and are far stronger financially than those who have credit cards.

Credit cards are a form of short-term debt with high interest rates. If you need or require short-term loans in order to function, you’re not managing your finances properly, period.

Further, all the propaganda about “being responsible” by using and paying off credit cards is hilarious. Credit cards have built-in costs, including the transaction fees charged to the merchants, which increases the price of every item sold by between 3% and 10%.

That means that even if you’re “responsible” and pay off your short-term loan every month, you’re contributing to a trend that results in a 3% to 10% interest rate being assessed on everything that’s sold. Such a HUGE fee is not “responsible” in any sense of the word.

]]> By: ekrabshttp://www.moneycrashers.com/more-reasons-to-cut-up-your-credit-cards/#comment-6070 ekrabs Fri, 18 Jul 2008 19:52:03 +0000 http://www.moneycrashers.com/?p=591#comment-6070 Weeeell, I have to agree with J. It depends on your personal finance skills. However, I also agree that there are a lot of unscrupulous credit card companies out there. To be fair, I also think there are some decent credit card companies as well. And if you have the skills to tame it, you can have it "pay you back" in the way of mileage perks, reward points, and cash back. But again, it depends on your personal finance skills. Weeeell, I have to agree with J. It depends on your personal finance skills.

However, I also agree that there are a lot of unscrupulous credit card companies out there.

To be fair, I also think there are some decent credit card companies as well. And if you have the skills to tame it, you can have it “pay you back” in the way of mileage perks, reward points, and cash back.

But again, it depends on your personal finance skills.

]]> By: authorhttp://www.moneycrashers.com/more-reasons-to-cut-up-your-credit-cards/#comment-6040 author Wed, 09 Jul 2008 01:51:48 +0000 http://www.moneycrashers.com/?p=591#comment-6040 J, I agree with you that the lack of personal responsibility is the reason for credit card abuse, but it is my belief that credit cards are bad financial products. They have a very long track record of creating policies, fees, and exorbitant interest rates that do not help the consumer. J, I agree with you that the lack of personal responsibility is the reason for credit card abuse, but it is my belief that credit cards are bad financial products. They have a very long track record of creating policies, fees, and exorbitant interest rates that do not help the consumer.

]]> By: Jhttp://www.moneycrashers.com/more-reasons-to-cut-up-your-credit-cards/#comment-6039 J Fri, 04 Jul 2008 16:30:56 +0000 http://www.moneycrashers.com/?p=591#comment-6039 Did any of the "research" you quote above account for the fact that those without credit cards spent less because they have less money to spend ... with poor money management resulting in either an inability to obtain a credit card, or having only cards that are maxed out. You continue this crusade to show that credit cards cause irresponsibility, when it's really irresponsibility that causes problems with credit cards. Did any of the “research” you quote above account for the fact that those without credit cards spent less because they have less money to spend … with poor money management resulting in either an inability to obtain a credit card, or having only cards that are maxed out.

You continue this crusade to show that credit cards cause irresponsibility, when it’s really irresponsibility that causes problems with credit cards.

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