Have you sworn off credit cards??

[Bell30656]

I guess I'm the opposite, I worked hard to rebuild enough to get credit cards. However, my usage has changed. I use credit cards for gas purchases, grocery, dining, furniture, everything. However, I don't buy it if I don't already have the money in my bank account. My credit cards each are reporting a double digit balance each month. I watch my score on Credit Karma which is not exactly correct but is a good tool. Most importantly it is free.

Here's an example. I badly needed a dining room table. My dining room has been an empty area for over a year. My daughter and I eat at the counter in the kitchen or TV trays. It was time. So, I went to Rooms to Go who approved me for a $3500 limit. The old me would have bought... $3500 worth of furniture. The new me went to the Outlet Store in Forest Park and bought a great bar height table with four chairs for $400... The statement period ended the 16th... My first payment is due on 5/5 but I simply took $375 from my checking account and paid it. I'll let the $25 report for a month then pay it.

My Capital One is used for gas purchases all month. I pay it off down to $25-$30 before the statement ending date. My score has climbed back up rapidly because of this practice. I simply don't buy it if I don't already have the money.

Small Print - Except my car... I owe on that sucker for a while... but it is an investment... but it saves money... but, but, but

[chiwawa]

22 months with-out credit card

[Indigosage]

I will likely have one card with a low limit to rebuild credit and in case of emergencies. No more carrying a balance or frivolous spending for me though!

[12000debt]

Been going 'cardless' for about 6 weeks.

No more for me.

I just want to live a simple life............peacefully.

[Unibrow]

I am rebuilding and rebuilding fast. Discharged 6/2011. I currently have 2 credit cards, 2 secured cards, and 2 store cards. I use the cards to get rewards and pay off the balance 2-3 times a month. My HSBC card is giving me 2% cash back on every transaction. I would be a fool not to use it to pay my bills, groceries, and gas. I have learned my lesson and only use it for things I would have to pay cash for at the end of the month.

[TheBajan]

MarkCantaur - where do you draw the distinction between a person who deliberately abuses the system by accumulating debt with the intention of never paying it back, and the person who takes advantage of the system by utilizing credit for as long as possible, knowing that there is little or no chance of ever being able to pay the debt down? That actually makes most everyone filing for bankruptcy due to unmanageable unsecured debt a thief.

Fraud is a willful act. The burden of proof is on the creditor. Fraud cannot be proven without evidence. It's a good thing that long-standing indebtedness is not evidence enough!

I draw a distinction with intent. I can only speak for myself in this but in our case, I never wanted to 'fall back' on the CC's when we ran out of other sources. As I have already mentioned, I lean more toward the idea of swearing them off entirely. My husband, on the other hand, was used to relying on them when things got tight and in the past we [he] always managed to get through the rough spots and be okay. I could see the writing on the wall long before he could and even I still hoped against hope that we would find a way out.... a way to pull it all together. So, even though it's true that I was aware we were in trouble financially, I can say just as truthfully that my hope, my intention, was to try to just make it a bit longer. When I realized it was too late, and my husband finally realized it also, we stopped using the CC's completely. We continued to pay on them for another 7 months after that even though at that point we both knew that our last shot at avoiding BK was quickly fizzling away. By the time we filed, we had nothing left to pay with. Anyway... all that to say that I think most people here have a similar story. With rare exception, people don't purposely decide to go bankrupt. I could be wrong about that but I hope not. I would like to think that for the most part, people are more honest than that. Obviously, using CC's willfully KNOWING you intend to file is fraud. That's not the same as using cards and being aware that you're in a financail mess that may take you down that road.

Just my two cents...

The Bajan

[mountanddo]

I think sometimes we get clouded a bit by the word "fraud". I certainly used my credit cards while at the same time thinking I might not be able to pay for this. It was what I had to do when I wasn't working to survive. I knew that I was paying my electric bill and buying groceries with my credit cards and that I was spending money I probably would not be able to pay back. Did I spend money thinking I was going to file bankruptcy? Not literally but it was in the back of my mind. I had hoped I wouldn't have to file but it didn't work out that way. I knew it would be an option. Did I go out and max out my cards with the specific intent to file? No, but I didn't stop using them either knowing I might have to file. So if that is fraud then I guess it is. There is a fine line.

[kornellred]

MarkCantaur - where do you draw the distinction between a person who deliberately abuses the system by accumulating debt with the intention of never paying it back, and the person who takes advantage of the system by utilizing credit for as long as possible, knowing that there is little or no chance of ever being able to pay the debt down? That actually makes most everyone filing for bankruptcy due to unmanageable unsecured debt a thief.

Fraud is a willful act. The burden of proof is on the creditor. Fraud cannot be proven without evidence. It's a good thing that long-standing indebtedness is not evidence enough!

[Pandora]

Havent used a credit card since 2008 when they jacked my rate for no reason whatsoever - so paid it off and closed it out. Dont miss it and life is much easier w/out it.

[MarkCantaur]

Relax, MarkCantaur. I am not using--and do not currently own--ANY credit cards. I have not used any credit cards since January or February of 2009, and I quit paying all my debts in March of 2009 out of economic necessity--not out of a malicious desire to "screw" the banks. I am currently a full-time student, and I don't have the money to pay anything towards any of my debts even if I wanted to.

The point I was making is that having the credit cards to fall back on during very tough economic times proved to be a godsend--not that I was planning to obtain or use credit cards with the intention of not paying them. It just ended up working out that way, and the "free" money I received by defaulting has helped keep me afloat.

I apologize if I was hasty in writing. Your post as it was worded, just did not sit well. thank you for clarifying.

[AngelinaCatHub]

Removed due to further information.

[bcohen]

Relax, MarkCantaur. I am not using--and do not currently own--ANY credit cards. I have not used any credit cards since January or February of 2009, and I quit paying all my debts in March of 2009 out of economic necessity--not out of a malicious desire to "screw" the banks. I am currently a full-time student, and I don't have the money to pay anything towards any of my debts even if I wanted to.

The point I was making is that having the credit cards to fall back on during very tough economic times proved to be a godsend--not that I was planning to obtain or use credit cards with the intention of not paying them. It just ended up working out that way, and the "free" money I received by defaulting has helped keep me afloat.

[MarkCantaur]

Now that I have defaulted on all of my debts, I essentially got the money for free. If I don't get sued, then great. If I do get sued, then I'll file for Chapter 7. But in either case, I won't be paying anything toward these debts ever again.

If you are continuing to use the cards and intend not to repay the debt then you are a thief.

[AngelinaCat]

With all due respect, and with VERY great respect, continuing to rely on credit cards is not the way to go. Yes, you can blame the economy, etc., but the major problem is YOU NOT learning to live within your means.

Before you castigate me, let me assure you that I HAVEN'T learned either. The income has NOT kept up with our bills. And I agonize about how we will make it until the next payday.

I am actually going out on the road and picking up aluminum cans to sell. We just went and turned in 27 lbs of aluminum and got $18.00.

The difference is that we don't have a credit card to fall back on. I have wished almost every day for a 'small' credit card where I could purchase what we need and then pay it off at the end of the month. That is called a PayDay Loan, folks!!!

That credit card in your pocket, as Flamingo has in her signature, is a snake in your pocket. It is a PayDay loan, and if you have followed any of 'Hub's and my posts about PayDay loans, you will know how we feel about them.

[bcohen]

Why would I "swear off" credit cards? It isn't the credit cards which led to my bad financial situation--it was the terrible economy, stagnating wages, and repeated layoffs in a 2-year period of time which did that. If anything, the credit cards were a blessing, giving me much-needed capital to buy the tools of the trade for my work, pay for moving expenses, and allow myself to become established in a different city. I also used them to buy groceries, pay for medicine, put gas in my car, and so on, during periods of unemployment/underemployment. Without the credit cards, I would have had to file for food stamps and Medicaid, and possibly even resort to criminal activity to survive.

Now that I have defaulted on all of my debts, I essentially got the money for free. If I don't get sued, then great. If I do get sued, then I'll file for Chapter 7. But in either case, I won't be paying anything toward these debts ever again.