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Discussion Starter #1
Just being curious here, but do any of you use your credit card as your sole means for purchases? I am considering switching over to my CC as my means for purchases from my bank card. My theory is this: by putting all my income on the CC, I have a greater chance of paying it down quicker. Plus, I can pay all my bills using the CC, if I skip putting my money on the card, I can just pay the monthly fee from the CC for the time being and for as long as their is enough funds on the card to do so.

Am I making any sense? Does my idea sound legit or am I sounding crazy?

Lemme know what you think.
 

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My theory is this: by putting all my income on the CC, I have a greater chance of paying it down quicker.
I get confused at this part. You want to pay down your credit card quicker, so you're putting more stuff on it? Seems like you'd want to go the opposite route. If you want to get rid of those payments, quit using the card and pay off the balance. The only reason I even have a credit card is for super small purchases for credit score purposes. A debit card works fine for everything else and the occasional $2 ATM fee easily offsets the occasional $200 late fee plus interest from the credit card company.
 

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I get confused at this part. You want to pay down your credit card quicker, so you're putting more stuff on it? Seems like you'd want to go the opposite route. If you want to get rid of those payments, quit using the card and pay off the balance. The only reason I even have a credit card is for super small purchases for credit score purposes. A debit card works fine for everything else and the occasional $2 ATM fee easily offsets the occasional $200 late fee plus interest from the credit card company.
Basically, the CC would become my bank card. All income would go on it along with my regular purchases. Whatever is left over after expenses acts as a payment towards the balance.

But, it's just an idea I've been thinking about. About the only drawback is waiting for the money to transfer from my bank to the credit card. But since cancelling my internet service, I add that monthly fee to the monthly CC payment and reduce the payoff time significantly.
 

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Sounds like it should work, although I might opt for the strategy of budgeting your paycheck and then feeding it the money that you won't borrow back again with other purchases. Budgeting to pay it off would work much better than paying it off with leftovers.
 

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What you're really saying is you want to pay that credit card bill off asap. Smart move.

My 2 cents:
Keep something more in your bank account than what they want as a minimum. If you're ever in a bind and need cash for something you'll pay little or nothing to use the bank's ATM whereas the cash advance on a credit card usually carries a higher interest rate.

I've been using one of my credit cards to pay lots of bills and for daily purchases as well simply because I get cash back and I pay it off monthly. The other card I carry a balance on gets any spare cash towards paying it off when I have the opportunity.
 

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Paying down your debt is the best idea. How about if you keep your money in the bank, I'm guessing you have direct deposit from how you're talking. The way I see your plan is kind of going in a circle giving them x dollars only to spend 1/2 of x on the same card. Maybe I'm missing something?

Stop all CC purchases and pay what you can each month and seeing the amount that goes towards your principle will help stop you from any future cc over spending. When you send in a $200 payment and only receive $175 in reduction towards your overall bill.

Use a weekly cash allowance for your needs, start to look at spending as, if you don't have it in your pocket you can't afford it. I see no reason to give a bank or lender total control of your money.
 

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I don't know how bad your situation is, but I wouldn't take that approach at all.

If you are seriously in debt; then you should go to a credit counseling service. Find one that is a non-profit.
They will gather information about your income and your debts/bills; then work out a budget for you.
If you're debt ratio is in bad enough shape; they can work with your creditors to eliminate penalties, reduce interest and reduce your payments.

If you're not in that bad of shape, then I would open two accounts. One savings (without a debit card or checks) for direct deposit and the other (checking with a debit card) for an operational account.
Only, move the amount into your operational account that you need to spend that week.
Stop using the CCs and commit a specific amount each month to pay them down.

Scott
 

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Playing with CC can get you in a HEAP of trouble. While sometimes the plan sounds good, if you fail to follow through with it, what is the consequences? You would be better off refinancing car/truck/bike for the fill amount allowable by the bank and using that to pay off the cards (if possible, I don't know how much debt you are in). That way you have a set number of payments and set amount of interest you will be paying. Then use the cars for their intended purposed, short term purchase or true emergencies.

Honestly (and I have been there) you need to discipline your self and budget your money and STICK to it. It is hard to do, but possible. I do buy my gas on a CC but it is one of them from the gas station that gives money back for gas purchases. But I only use it to go back and forth to work and pay it off EVERY MONTH.
 

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Sounds like it might work for you. Though (if I might be so bold) budgeting tightly might work better. A great way to get into smart budgeting is the 'envelope' method. Use an app on your phone and set aside your money for each category. Say, $150 a month for going out to eat. You see a restaurant, you get hungry; you've got $32 left in that 'envelope' to go out to eat. But; next week you're meeting friends. Guess you're eating at home!

Budgeting, and then finding a budget for a much bigger credit card payment consistently each month will probably get it paid down quicker than just putting all of your money on the card and seeing what's left at the end of the month. I fear the temptation could be there to overspend your paycheck as well.

I use my credit card for almost everything for the points and cash back. But I don't carry a balance over from month to month. I also have a separate credit card for my professional expenses and continuing education; most are reimbursed and the rest are tax write-offs. Keeps it all nice and neat and in one statement, instead of digging through my debit card or credit card statements.
 

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I have a "Bill Account" and a normal checking. As well as my CC through the bank. Every week I automatically move 50 to my savings to keep the thing open (BofA offers a Keep The Change program so I still have more going into my savings). Then I automatically pull that 50 and move it to my CC. I make 100 a month payment no matter what. Once all allotted amounts for that pay period are moved to my bill account, all left in my debit is mine do whatever with I choose. Credit usage sucks, I know. I used to have the mindset of "if I don't have the cash, I don't need it", but then I realized that if you have no credit, it's worse than bad credit and you can't get it when you need it i.e. vehicle.
 

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I have a "Bill Account" and a normal checking. As well as my CC through the bank. Every week I automatically move 50 to my savings to keep the thing open (BofA offers a Keep The Change program so I still have more going into my savings). Then I automatically pull that 50 and move it to my CC. I make 100 a month payment no matter what. Once all allotted amounts for that pay period are moved to my bill account, all left in my debit is mine do whatever with I choose. Credit usage sucks, I know. I used to have the mindset of "if I don't have the cash, I don't need it", but then I realized that if you have no credit, it's worse than bad credit and you can't get it when you need it i.e. vehicle.
Carrying a balance doesn't benefit your credit. Especially if the balance is above 30% of your credit limit. Using your credit card, and then paying it off each month will establish a great revolving credit history. (Because it shows both 0% utilization, and a 100% on-time payment history). Credit Cards report two things to credit bureaus, whether you paid your bill on time, and how much of your credit limit you are using. An ideal score has every payment made on time, AND has no utilization on the cards. That shows a lender responsible credit usage, and gives them a picture of healthy finances (because you have credit available you aren't using; so that must mean you're living within your means and thus will likely be able to pay your bill). Carrying a balance, especially a high one, only hurts your credit.

I got a credit card at 18; with something like a $500 limit. Did exactly as I said (used it each month, paid it off each month). With that, I was able to finance my Bike at about 8%. Not great, but not bad. But I did that on purpose. That small $5,000 purchase got paid off quickly with moderate interest; so when I finally made a BIG purchase that I actually needed a loan for (my car); I got a rate of about 4.75%. Someone with outstanding credit could still get better (like manufacturer 0% rates); and likely after this car is paid off, I'll get there. But credit scores are also dependent upon how many accounts you have and how old they are. So only having a couple credit cards; though paid on time and at 0% utilization; only means so much when they are only a few years old. The bike loan was a big help because it established installment credit for me (there are three types of credit; Installment, Revolving, and Real Estate), but it was a short loan so it only counts 'so much'.
 

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I used to have the mindset of "if I don't have the cash, I don't need it", but then I realized that if you have no credit, it's worse than bad credit and you can't get it when you need it i.e. vehicle.
All through college, I had that same mindset and didn't have any debt except for about $3,000 in student loans that I paid off before I graduated. Once I graduated, I quickly realized the same thing you did - no credit is worse than no credit. Granted I won't be taking out a loan for much of anything other than a small loan for a car that I can pay off within a year or two (my motor just exploded) and a mortgage, but you also need a good credit score for other things such as rent sometimes. When I figured that out, I finally got a credit card a couple months ago just for that reason. I only buy snacks with it and pay the entire balance every week or two, so I keep my credit utilization very low and my repayment rate very high, which translates to a good score as the risk for them is very low.
 

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I put EVERYTHING I CAN on my Venture card, including recurring payments for cable, newspaper, utilities, car insurance, etc. as well as all purchases online and in-store. Then I have autopay set up directly from a bank account which pays the credit card tab in full every month. It's all totally on autopilot.

Result: no interest fees, no need to remember when to make payments or send checks, and free air travel when enough points accrue.

What's not to like? You are going to have to pay the bills anyway, why not make it as easy as possible and get something in return?
 

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I use my American Airlines Mastercard for just about anything I can and pay it off each month. Easy way to rack up miles for free trips etc...
 
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