Using Credit Cards so that you can save money...
-
smart bear!
the best way to save is NEVER owe money, buy things never buy in installments and crap, pay in full, if no money, dun buy. -
It is not the credit card but how one uses it. I have about 4-6 credit cards. But I make it a point to pay my bills every month.
I never owe... You could be tempted to spend more when you have a credit card. But I find that as long as one can control can already.
Why I have so many cards? I can accumulate the points and also got a lot of discounts and freebies! Credit card companies will hate me, they want their customers to roll over their balances and not pay every month.
As for what runnie propose, assuming that you save $150 by charging the $150 to the credit card what is the point. The interest on the credit card balance is 24% per year which is the max legal interest limit in singapore (if charge beyong 24% considered loan sharking). So in the end you are worst off. You mentioned that you had other loans to pay off, what are those loans?
It is difficult to earn another dollar more (because salary is fixed) but to save another dollar is much easilier..... remember a dollar saved is a dollar earned. This sound old-fashioned but it is true. Also do not borrow to consume, it is the road to financial ruin. -
Yup... In other words, spend within your reasonable means... Only maintaining at that would you hold the 'mutual relationship' with them... But in case you can't? Be prepared to have your blood sucked out of you....Originally posted by the Bear:fwah!! Bear makes an appearance!
but back to the credit card thing..
minimum payment equates to interest...
interest is about 24% per annum the last time i read...
then there's the yearly subscriptions if you do not spend above a certain limit (at about $300 a month, i don't think it'll go above the usual $5k to $7k amount for free sub)
the only way you can "save" is if you pay up full each month, and never let them hit you with any interest... then the perks like whatever points or stuff can be used... already had a few free meals and mobile phone bills paid with my points
remember... the credit card companies are trying to make a profit out of you too! -
Yes... Impulsive buying... Sometimes based on a 'belief' that you would be able to use 'advance money' to pay up 1st using your future earning... If that picture falls out, could mean hell to you... Other times based on a 'delusion' that you're just spending your own money... Like most others have said, it's just a vicious cycle...Originally posted by donjng:Credit cards- in case of emergency!
But, if you have a credit card in your wallet, the chances are you can't resist using it.
Heehee. -
After reading through all these.. I think I don't have to point out much too? $300 and no savings...? At least you're not a dead fish? Once you're dead, you're DEAD..... Go around and ask people who are or had been in serious DEBTS with credit cards or financial supports before... They'll tell you... But at least some of them are with better reasons? Your 'plan'...? Err....Originally posted by rumie:after settling my Uni study loan and some other loan every month, i'm down to about $300plus from my salary. and this excludes daily expenditure like meals, etc etc...
let's face it, $300plus per month for expenditure is just sufficient. but my question here is, how do i still save up every month?
just in case you start saying i can save about $100 from the $300 if i cut down a bit, i just want to point out that, NO, it's not possible.
SO, i was thinking: Apply credit card so that i can charge my expenditure to it, pay the monthly minimum (of about $50-$80), so that i can have a bit of savings.
Savings = $300 i'm left with every month - credit card min. monthly repayment.
this sounds stupid, i guess, but i really need to save up. i feel it's better than using up all the $300 i have left with at the end of the month and realised at the end of it i've no savings, and this stupid cycle will go on every single month, right?
and as long as i don't touch my savings, the amount of savings that i have will be equal to the credit i've owe the bank as long as i don't over abuse my credit card, right? so just in case anything happens, i can just use my savings to repay all the credit card loan, right?
so many questions here and please, i need proper answers. scold me of being stupid, but do tell me where i've gone wrong...
Last question, is this the lifestyle people in singapore are having, or am i the only few who's going into a credit card debt?
-
take note of the power of compound interest
