Comments on collectingmycash: Discover

I second, that if you find yourself asking that qu...

2008-12-13T16:47:00.000-05:00

I second, that if you find yourself asking that question, don't go ahead with it.

Mark it on your calender for one year from now to reopen the question, and follow your budget for the coming year. If you can do that successfully, you can probably handle reframing the Discover card as a means of payment and still stay in your budget. But give yourself a two month trial period and mark on the calendar a "check-in" meeting to verify that this is working for you.

My position is that if you are sure that your expenses in various categories are as low as you want them to be or as humanly possible already, there is no potential harm in using a card to as a *means of payment* only.

That being said, I am going on cash o nly for the next 3 months to recheck whether my grocery, gas, and entertainment expenses are as low as they could be before going back to using my rewards card as a means of payment. That's because it's tempting to buy 20% more stuff when using a card, yet think you're getting *free money* when you get the paltry 1% back. Which in that case means you're actually getting a 19% penalty on using your card.

Here's my take - if you have to ask yourself the q...

2008-01-02T02:39:00.000-05:00

Here's my take - if you have to ask yourself the question, then you're not ready.

I get $80 a year from discover by using the cash b...

2008-01-01T20:26:00.000-05:00

I get $80 a year from discover by using the cash back bonus features, current balance 0.00.

wealthy_1,Of course, only you can answer that ques...

2007-12-27T11:51:00.000-05:00

wealthy_1,

Of course, only you can answer that question. But even if you're not ready yet, it sure sounds like you're close. You are certainly clear on the fact that it's not the card itself that is the problem. Credit cards are NOT evil or bad or wrong. They are simply another way to spend money. The card holder has complete control over how much they spend; credit cards do not come to life at night and rush out to stores and buy things.

If you can use a credit card and KNOW that you are spending cash, then do it. The cash back is real. If you're in control, why turn your back on an extra income stream?

Well, I can honestly say that's exactly where my C...

2007-12-27T00:50:00.000-05:00

Well, I can honestly say that's exactly where my Citibank balance came from. Sure, I earned over $300 in credits (that I used for Christmas) but I am still paying for the original bill. I had the intentions of paying it off right away too. I put everything on the card so I could get the points. Unfortunately my best ideas didn't work for me.

I haven't used a credit card since July - and I have found my over all spending has gone down.

Now I have to pay 100% of Christmas next year -- but I'm going to be ready for it.

Thanks for the comments! This was great. Two dif...

2007-12-23T20:09:00.000-05:00

Thanks for the comments! This was great. Two different views. I'm still pondering this one. I'll post about it when I make a decision.

I pay for everything with Discover, unless they do...

2007-12-22T08:02:00.000-05:00

I pay for everything with Discover, unless they don't take it, so that I can earn the cash back. I don't pay it right after I make the purchase, but I separate it so I know I've spent it. Then I pay it in full every month. I hope you can do it...the cash back is great.

It is a dangerous game on two fronts. One if you d...

2007-12-22T01:59:00.000-05:00

It is a dangerous game on two fronts. One if you don't pay it off you pay the piper on interest. Just a few slip-ups can wipe all incremental funds that you get from the card.

Second, people spend up to 20% more using the card instead of cash. We have cut our grocery bill by 33% by using cash as it forces better buying decisions.

Will either of these things happen to you? If you have a history of doing it (like us) I wouldn't take the risk, but if not, try it and switch back if needed, but start slowly like just gas or groceries first, then expand.