Credit Cards

I have one credit card and my maxim has been for the last 20 years or so, If I am unable to pay the full amount owing at the end of the month, I can't afford what I am buying.
Credit card interest is astronomically high.

 

Credit card!
The name says it all..

 

Credit cards are a convenience tool. Used properly they give a lot of
protection to the mail order and retail buyer. Also its probably better to have than a permanent agreed overdraft due to the no interest from time of purchase to statement required payment. Its also a quick way of getting a loan without the hassle
However monthly repayments are slightly over the top for interest charges its only dodgy when you pay the minimum required payment for a long time.
I use mine for the simple fact that I do not have to divulge my bank details in transactions.



:nemo: :nemo:

 

Agreed the credit card does give protection from loosing money on transactions in the UK.
The no interest deals are also useful, they are however a useful tool used by the industry to get you to keep putting items on your card. At the end of the free period.......................

 

With some judicious planning, credit cards are a way of making money. Say you have a £2000 bill on your credit card. By switching it to a 0% on balance transfers for a 12 month period, and saving the £2000 in a high interest bearing savings account, you make money, even with transfer fees. For instance, if the fee is 2% of the transfer balance, your paying £40 on the £2000 bill. If you save £2000-£40 = £1960 in a 6% AER account, you make about £117 overall. All the while, you've bought whatever it was you earned the bill for.

Of course, this requires discipline and planning, but that shouldn't be a problem for the disciplined readership of RR, right?

The same canny thing is done with the 0% to pay offers on furniture. Divide the total bill be 12, pay that 1/12th into a savings account each month and you get the balance to pay off the bill at the end, and the interest pays for a meal for you and the missus. Quids in!