Using credit cards to buy everything.

[iamwhatiseem]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

 

[hadit]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

It's a great plan and people should take advantage of it. You are correct, however, that it requires planning and responsibility to do correctly.

 

[Woodznutz]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

I like the fact that my monthly statement has a record of every purchase. I haven't used actual money in years. Everything goes on the card. Reminds me, I gotta check my 'rewards' balance. Haven't done so in months.

 

[Mr Natural]

A good idea as long as you pay in full each month.

 

[justoffal]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

It only works if you pay off in 30 days

 

[MisterBeale]

Garbage idea.

Not enough folks have enough Cash at home, and use cash enough.


. . . as the victims of the Hurricane, and other natural disasters always learn.

Hurricane Helene aftermath prompts card, cash troubles​

After the storm ripped through the southeastern U.S., consumers and merchants have been left grappling with card network outages and cash shortages.

Hurricane Helene aftermath prompts card, cash troubles

After the storm ripped through the southeastern U.S., consumers and merchants have been left grappling with card network outages and cash shortages.

www.paymentsdive.com

". . . Across much of the region, particularly in the hardest hit areas, credit card networks have been disabled in tandem with power and internet outages. Merchants who managed to open their doors were sometimes demanding that customers use cash only because of an inability to process credit or debit card transactions.

The grocery store chain, Ingles Markets, which has locations in North Carolina and Tennessee, said damage to its card processing had affected its stores throughout the region, leading it to accept only cash and checks, but not credit and debit cards, according to the Knoxville News Sentinel.

Consumers forced to turn to cash are likely hard-pressed to come up with it, given the decline in use of hard currency in the U.S. these days. They increasingly rely on debit and credit cards for payments, with about two-thirds of transactions made with cards.

Specifically, a small survey that the Federal Reserve does regularly showed consumers used credit cards for 32% of payments, debit cards for 30% and cash for 16%, according to the latest report in June. (Consumers also used automated clearing house payments 13% of the time, checks 3% of the time and other methods 6%.) . . "

 

[JoeMoma]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

I could do what you describe I suppose. I already do most of my purchases with a debit card, so it would be pretty easy to use a credit card instead. I also live within my means. Hopefully I will never have to borrow any money for the rest of my life. That said, I don't have a credit card and I don't plan on getting one.

 

[Woodznutz]

A good idea as long as you pay in full each month.

We're called "deadbeats".

 

[JoeMoma]

Garbage idea.

Not enough folks have enough Cash at home, and use cash enough.


. . . as the victims of the Hurricane, and other natural disasters always learn.

Hurricane Helene aftermath prompts card, cash troubles​

After the storm ripped through the southeastern U.S., consumers and merchants have been left grappling with card network outages and cash shortages.

Hurricane Helene aftermath prompts card, cash troubles

After the storm ripped through the southeastern U.S., consumers and merchants have been left grappling with card network outages and cash shortages.

www.paymentsdive.com

". . . Across much of the region, particularly in the hardest hit areas, credit card networks have been disabled in tandem with power and internet outages. Merchants who managed to open their doors were sometimes demanding that customers use cash only because of an inability to process credit or debit card transactions.

The grocery store chain, Ingles Markets, which has locations in North Carolina and Tennessee, said damage to its card processing had affected its stores throughout the region, leading it to accept only cash and checks, but not credit and debit cards, according to the Knoxville News Sentinel.

Consumers forced to turn to cash are likely hard-pressed to come up with it, given the decline in use of hard currency in the U.S. these days. They increasingly rely on debit and credit cards for payments, with about two-thirds of transactions made with cards.

Specifically, a small survey that the Federal Reserve does regularly showed consumers used credit cards for 32% of payments, debit cards for 30% and cash for 16%, according to the latest report in June. (Consumers also used automated clearing house payments 13% of the time, checks 3% of the time and other methods 6%.) . . "

I keep a stash of cash at home. In fact, I am an Ingles Markets shopper and used money form that stash to make some purchases while they were not accepting cards. They are back to accepting card purchases now.

 

[luiza]

I just pay cash for everything from betting and Trading profits .

"Excess" profit is ploughed back into Precious Metals -- Gold up $25 today as it smashes through 2700 and Silver lining up to run to the stars .
Copper looks good .
And Warren Buffet keeps unloading shares, which tells you everything you need to know.

Why have a credit card when your only problem is finding enough safe places for the cash ?

 

[Harpy Eagle]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

As stated above, a great idea as long as you are paying it off.

I use my Delta AmEx for everything ,even put a car nonpayment on it.

Instead of cash back I get miles. I used them to upgrade to first class when we flew to Panama and again coming home from our trip to Vegas.

 

[Harpy Eagle]

Garbage idea.

Not enough folks have enough Cash at home, and use cash enough.

The need to keep some cash for an emergency does not remove the benefits of using a CC to pay bills and such

I cannot use cash to pay my power bill, water bill, phone bill ,internet bill, trash bill or so many other things.

 

[Harpy Eagle]

I could do what you describe I suppose. I already do most of my purchases with a debit card, so it would be pretty easy to use a credit card instead. I also live within my means. Hopefully I will never have to borrow any money for the rest of my life. That said, I don't have a credit card and I don't plan on getting one.

There are so many advantages one can get from a credit card you do not get with a debit card.

Just have to be smart about it.

 

[MarathonMike]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

Many people are forced to use credit cards for food and gas every month because of the ravages of the Biden-Harris economy. They are caught in the downward spiral of ever increasing debt at extremely high interest rates. We've used credit cards for every possible purchase for many years, have never paid a dime in fees or interest and as you correctly state make money on cash back.

 

[iamwhatiseem]

Garbage idea.

Not enough folks have enough Cash at home, and use cash enough.


. . . as the victims of the Hurricane, and other natural disasters always learn.

Hurricane Helene aftermath prompts card, cash troubles​

After the storm ripped through the southeastern U.S., consumers and merchants have been left grappling with card network outages and cash shortages.

Hurricane Helene aftermath prompts card, cash troubles

After the storm ripped through the southeastern U.S., consumers and merchants have been left grappling with card network outages and cash shortages.

www.paymentsdive.com

". . . Across much of the region, particularly in the hardest hit areas, credit card networks have been disabled in tandem with power and internet outages. Merchants who managed to open their doors were sometimes demanding that customers use cash only because of an inability to process credit or debit card transactions.

The grocery store chain, Ingles Markets, which has locations in North Carolina and Tennessee, said damage to its card processing had affected its stores throughout the region, leading it to accept only cash and checks, but not credit and debit cards, according to the Knoxville News Sentinel.

Consumers forced to turn to cash are likely hard-pressed to come up with it, given the decline in use of hard currency in the U.S. these days. They increasingly rely on debit and credit cards for payments, with about two-thirds of transactions made with cards.

Specifically, a small survey that the Federal Reserve does regularly showed consumers used credit cards for 32% of payments, debit cards for 30% and cash for 16%, according to the latest report in June. (Consumers also used automated clearing house payments 13% of the time, checks 3% of the time and other methods 6%.) . . "

Haha... I never said you should never have checks in your house

 

[JoeMoma]

When I was a young man starting college, I signed up for a Sears credit card because they were offering a discount on my purchase and a couple of 2 liter soft drinks for signing up. So when the bill came, I paid off the card, or so I thought, and never looked at those bills again. Yes, I know that was stupid of me. At some point, I got charged some sort of fee for the card which I never paid. Years later when I was trying to secure a loan for the purchase of a house, that credit card hurt my credit rating.

Now, I simply don't do credit cards. Also, anyone approaching me at a store trying to sign me up for a credit card better watch out........ I'm going to give 'em an earful.

 

[jotathought]

Is what most people should be doing.
But alas, it is the last thing on the planet most people should be doing.
What?
Yes. Using a credit card to pay for EVERYTHING is very smart. Why? Cash Back.
The card I use pays 5% on all food and entertainment purchases. Which includes streaming subscriptions etc. Groceries, restaurants etc.
And 3% on everything else.
Unfortunately today with Biden's killer inflation - we are forced to spend between $700 -$800 a month at the grocery store. But - that earns us about $40 a month in cash back. That if we used our own money, we wouldn't get.
Add to that the fact I use that card to pay for almost everything else - including bills. (Except ones that charge you to use a credit card... called "convenience fee" Which is about another $1300 a month.
That earns us another $40 a month approx.
So by using a credit card we earn almost $1000 a year in cash back.
But you have to pay the balance off every month BEFORE the interest day hits.
Which is why most Americans should not take advantage of this, because they lack any fiscal responsibility whatsoever.

Exactly, and this is the reason why we are seeing record-high credit card debt in the United States. Instead of consumers benefiting from their credit cards, a majority tend to impulse buy and lack a basic understanding of how interest rates operate.

 

[WorldWatcher]

Not to be contrary...

But the whole concept of "Cash Back" is smoke and mirrors.

Business run on costs, expenses, and profits. All this equates to higher hidden costs in the prices of the good or service purchased because the business is charged usually a per-transaction fee in addition to a percentage of the transaction by the CC Company.

That means the aggregate cost of goods and services is higher because the providing business has baked CC transactions into the selling price. It's the cost of doing business.

Now convenience in making the transaction and single point review of charges on a single statement have a worth to the consumer. No doubt, but let's face it we really don't get money back when you think about it. And the overall result is higher purchase prices.

WW
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.
.
DISCLAIMER: We also use a low limit (~$1000) for routine purchases and pay it off with no month-to-month interest. That doesn't mean that the "rewards" are free money or that the goods were actually cheaper.

I would love to see businesses be required to add to receipts a separate line item showing electronic payment markup + CC Cost as part of receipts so that consumer actually understood the financial transaction.

For example I recently scheduled renewal of our HVAC maintenance contract. The cost is $200. If I pay by check the cost is $200. However if I pay by credit card the cost is $207 to cover electronic payment.

 

[Harpy Eagle]

Not to be contrary...

But the whole concept of "Cash Back" is smoke and mirrors.

Business run on costs, expenses, and profits. All this equates to higher hidden costs in the prices of the good or service purchased because the business is charged usually a per-transaction fee in addition to a percentage of the transaction by the CC Company.

That means the aggregate cost of goods and services is higher because the providing business has baked CC transactions into the selling price. It's the cost of doing business.

Indeed, so one would be foolish not to take advantage of cash back or bonus miles since you are being charged extra due to them anyhow

 

[WorldWatcher]

Indeed, so one would be foolish not to take advantage of cash back or bonus miles since you are being charged extra due to them anyhow

My son is ~34 years old. He never carries cash and I could count on one hand the number of paper checks he's ever written in his life.

WW