Would life be "better" if credit cards didn't exist.........

[Wacky Racer]

Or for that matter "easy credit" of any kind.

Following the current PH credit card debt threads with interest.

Say for instance you saw a TV set in a shop and thought Hmmm,I fancy that, went in and pulled your card out thinking I'll worry about paying that off later, whereas in the early 60's people would have thought "That's nice, I'll save up six months to get it".......

Only using that as a hypothetical example, and yes, I know the world revolves on credit, but if credit cars didn't exist, only debit cards, would it make much difference to your everyday life??

I suspect the majority of the replies are going to be no, because today is a live for today society generally.......

[skene]

Wouldnt make a difference to me day to day, I don't have one, nor do I want one. The thought of oweing people other than my parents money makes me uncomfortable.

[Adenauer]

Surely it's the fault of the card holder, as opposed to the card? People who need everything now, rather than saving for it would just go to a loan shark if they didn't have a CC, and buy the telly?

[Laurel Green]

It would certainly be better for the weak-willed.

[ZOLLAR]

Wacky Racer said:

Or for that matter "easy credit" of any kind.

Following the current PH credit card debt threads with interest.

Say for instance you saw a TV set in a shop and thought Hmmm,I fancy that, went in and pulled your card out thinking I'll worry about paying that off later, whereas in the early 60's people would have thought "That's nice, I'll save up six months to get it".......

Only using that as a hypothetical example, and yes, I know the world revolves on credit, but if credit cars didn't exist, only debit cards, would it make much difference to your everyday life??

I suspect the majority of the replies are going to be no, because today is a live for today society generally.......

Subtle

[Council Baby]

skene said:

Wouldnt make a difference to me day to day, I don't have one, nor do I want one. The thought of oweing people other than my parents money makes me uncomfortable.

Worst 'I prefer to get an advance on my inheritance' post ever

[sherbert90]

If used with restraint, fair enough, but too many people live beyond their means, because it's so accessible.

'Buy now pay later' equates to 'buy now worry later' for a lot of people.

I don't use them personally.

[skene]

Council Baby said:

Worst 'I prefer to get an advance on my inheritance' post ever

It's always paid back though

[RemainAllHoof]

The problem with the old "bankers are evil" statement is that they made easy credit possible but it's the same people who complain about it who likely have their 50" LCD TV, Audi 330 AMG Sport 4x4 ( ) and their exotic holidays on the never never. Now, the problem is that while I like to criticise them for being idiots and destroying the country (the moaners, more than the bankers), if it wasn't for credit (or debt as I prefer to call it), there'd be less money floating around which means less money for your salary as your company would have less turnover, and less tax leading to lower standards of education and health services etc etc. It's a tricky one. We can't just stop all borrowing of money dead.

ZOLLAR said:

Subtle

[y2blade]

Adenauer said:

Surely it's the fault of the card holder, as opposed to the card? People who need everything now, rather than saving for it would just go to a loan shark if they didn't have a CC, and buy the telly?

this^^^^

The same type of people would still do it if credit cards were not about...but they'd be borrowing from elsewhere.

[RemainAllHoof]

I mean, let's take things further. If we kept borrowing at levels in the 1980s, less people would be able to afford computers which means less investment in technology so things like iPads, broadband, CT scanners, satnavs etc would all be much more expensive or non-existent for the everyday man (where relevant; don't you have a CT scanner at home?). We would probably mostly be enjoying a 1980s lifestyle still. Money makes the world go round!

[technoluddite]

No. I'd worse off by the £80 or so a year Barclaycard\Egg pay me to use one for a start.

[Ari]

Wacky Racer said:

Say for instance you saw a TV set in a shop and thought Hmmm,I fancy that, went in and pulled your card out thinking I'll worry about paying that off later, whereas in the early 60's people would have thought "That's nice, I'll save up six months to get it".......

I suppose it depends whether you think that the "must have" society is a product of easy credit or a culture change.

Or whether one lead to the other...

[MitchT]

I've never had one. If interest rates were sky-high then I would as my cash could sit in the bank earning interest while I spent the CC card company's money before paying it off at the end of the month. But with rates so low it isn't worth bothering.

[RemainAllHoof]

MitchT said:

I've never had one. If interest rates were sky-high then I would as my cash could sit in the bank earning interest while I spent the CC card company's money before paying it off at the end of the month. But with rates so low it isn't worth bothering.

I've heard it's good for improving your credit rating. It's the only reason I use one (pay off in full every month).

[ewenm]

RemainAllHoof said:

I've heard it's good for improving your credit rating. It's the only reason I use one (pay off in full every month).

I use mine as a delayed payment card too, paying off in full every month.

People blaming the credit card companies for out-of-control debt really need to look closer to home.

[Funk]

RemainAllHoof said:

MitchT said:

I've never had one. If interest rates were sky-high then I would as my cash could sit in the bank earning interest while I spent the CC card company's money before paying it off at the end of the month. But with rates so low it isn't worth bothering.

I've heard it's good for improving your credit rating. It's the only reason I use one (pay off in full every month).

Perversely that approach actually isn't good for your credit rating; the sort of people card companies want are people who perpetually have high balances and pay off only the minimum each month. So ironically paying off your card each month actually counts against you with most lenders, as they never make any money from you.

[garycat]

technoluddite said:

No. I'd worse off by the £80 or so a year Barclaycard\Egg pay me to use one for a start.

About £500 a year for me as I use a Cashback Amex card for work expenses, put all my monthly outgoings on a Tesco credit card which helps offset the offset mortgage AND I get at least £150 worth of tesco vouchers a year. The card is fully paid off every month.

[anonymous-user]

useful tool if used properly

if reasonable money lessons were on the school curriculum, that would help to ensure more people used them properly (whilst still hoping enough used them badly that the issuers still offered the right level of benefits to sensible users of course).

[Scootersp]

I think the days of old when you might have had to save a little to purchase a luxury, meant that the time factor gauranteed that if you ended up buying it then you really did want it. Credit can allow snap/regretably decisions and multiple ones at that.

If you are saving for something (item 1) then perhaps you'll change your mind and switch to something else (item 2) or perhaps something essential (item 3) comes up that the money you've saved is needed for so item 1 or 2 have to wait again for another period of saving. (total spend value of item 3)

If you have a card some will have bought the first item and then the second when they began to think it was a better choice and then whack the unexpected but essential cost on it too. Ok if they then are frugal for a period but it can be habit forming and a nicely timed limit upping letter from the credit provider can be all that's need to start the cycle again. (total spend value of items 1, 2 & 3)