Splitting Debt

[boogielicious]

1 hour ago, iacas said:

Yeah, if you're already in credit card debt… don't do it.

I tend to forget that other people carry credit card debt. I do not.

(I'm happy to carry my car loan, though… at 0% interest. )

Great minds think alike! 

[Golfingdad]

1 hour ago, iacas said:

No, it wasn't a brag. There are a lot of people who don't carry credit card debt. I'm not unique or gifted in that sense…

Same here.  I (we actually, wife feels the same way) just can't bring myself to do it.

[No Mulligans]

1 hour ago, iacas said:

Yeah, if you're already in credit card debt… don't do it.

I tend to forget that other people carry credit card debt. I do not.

(I'm happy to carry my car loan, though… at 0% interest. )

Im also one of those...

I have credit cards but always pay them off each month so as to pay no interest. 

I'm very debt adverse and have no debt. The only debt I ever carried was a home mortgage and a rental property mortgage.  The home mortgage I even paid off 10 years ago, which was 15 years early and I sold the rental. I'll admit paying off the home mortgage was a questionable financial decision from an investment income perspective but I get satisfaction in the form of peace of mind from not having any debt. 

At my age, 58, I should have my finances in order and really shouldn't have debt. 

[skeedawg]

I have to concur with going all cash crowd here. Once I did that I never looked back. I have more than enough, now that I'm not in a constant cycle of having to pay off accumulating more than I can really afford. I learned this lesson the hard way unfortunately, but life can be a great teacher of the disciplines needed to be successful. 

FWIW - I went through the Total Money Makeover program that Dave Ramsey teaches. He's got books, website, etc. to help get you started. I like it because the concepts are very simple to follow, especially for the money/financially challenged like myself.

[CarlSpackler]

1 hour ago, DaveP043 said:

Even though @CarlSpackler and I are giving pretty much the same advice, I wouldn't classify credit card companies as "thieves."  They're a business offering us a significant amount of convenience, in return for which they expect to make money, most of which comes through interest charges.  Those of us who choose to use credit cards go into that arrangement supplied with all the relevant information.  Its nobody's fault but our own when we run up debts we can't pay, or when we end up having to make endless interest payments.  

I feel bad throwing water on the burning desire for new clubs, certainly most of us have had that desire.  As you said, discipline is key when managing financial concerns.

They are pretty close. They charge vendors transactions fees for usage and then charge the user interest, in many cases, a criminal amount of interest IMO. Vendors pretty much have to accept credit cards now or they won't be in business long. Perhaps if they weren't taking money from both sides, I would feel different. I agree that nobody is forcing the consumer to use a card, but you have a hard time getting by without one these days. I just stay on the side of the equation where I am not feeding the beast. I'm surprised that more businesses don't offer cash discounts. 

[Hacker James]

Again, I can not disagree, but at least I am being honest and I would wager that in totality, there are more people like myself than not. Of course, I have no way of knowing that, and what is being shown here is only a sample. I would not go as far as saying that people on a golf forum are elitists, as not only is it probably not true, it would be a little unfair for me to suggest the same.  I do know that nearly everyone I have spoken to is in a similar situation, or worse.  fwiw, I do have a plan to be debt free in 44 months as I was a mere seven years ago. Now if I can only stick to it.  In 10 or 15 years from now, it will be a moot point as I more than likely won't be among the living. My sincere congratulations to all who have accomplished what they have. As for a purchase that I was/am contemplating, should I wait until I can afford it, I will be too old most likely.  To expedite things, I would suggest that if 50 forum members would "donate" $20 to this worthy cause, it could be to their benefit as I would surely keep you updated to my progress and therefore give credibility to the benefit and validity of one having a club fitting/purchase.    For a comparison, TRUMP UNIVERSITY.

[CarlSpackler]

1 minute ago, Hacker James said:

Again, I can not disagree, but at least I am being honest and I would wager that in totality, there are more people like myself than not. Of course, I have no way of knowing that, and what is being shown here is only a sample. I would not go as far as saying that people on a golf forum are elitists, as not only is it probably not true, it would be a little unfair for me to suggest the same.  I do know that nearly everyone I have spoken to is in a similar situation, or worse.  fwiw, I do have a plan to be debt free in 44 months as I was a mere seven years ago. Now if I can only stick to it.  In 10 or 15 years from now, it will be a moot point as I more than likely won't be among the living. My sincere congratulations to all who have accomplished what they have. As for a purchase that I was/am contemplating, should I wait until I can afford it, I will be too old most likely.  To expedite things, I would suggest that if 50 forum members would "donate" $20 to this worthy cause, it could be to their benefit as I would surely keep you updated to my progress and therefore give credibility to the benefit and validity of one having a club fitting/purchase.    For a comparison, TRUMP UNIVERSITY.

Oh boy. Here we go.

:waits for thread to explode in 3... 2...

[Hacker James]

HA HA, Yes....my sense of humour is not always understandable, but usually will generate comment.

[newtogolf]

The best way to manage credit card debt is to not have credit card debt.  

If you already have credit card debt then the best way to manage it is to ensure you're paying the lowest interest rate possible on that debt and pay more than the minimum payments every month to reduce the principle.  If you have a decent credit score, you can usually get a low interest credit card and some will even allow you to transfer balances at a very low interest for six months.  

Credit card companies provide a convenience but they are betting their money that you won't pay the balance at the end of every month and they will make a greater return on their money in interest than they can in other forms of industrial investment.  They charge high interest rates because they know some of their customers will file bankruptcy so like everything else the responsible credit users have to pay extra to cover those who don't meet their obligations.  

You'd be better off buying the clubs using Paypal credit that provides you with 0% financing for six months or opening a new credit card that offers similar terms and making sure you pay them off in six months.   

[Yukari]

Generally, more credit cards you have worse your credit rating as you have a potential for a larger debt. 

You should only have a minimum number of credit cards. 

[Kalnoky]

W/ re: to your FICO score keep your credit card debts at under 30% of the card limits. 

Some credit cards, e.g., Discover will give you a free Transunion/Equifax FICO score, so you can track your progress. Unfortunately this excludes your Experian report.. CreditKarma.com also excludes Experian. 

I pay off my credit cards every month. I use the rewards to travel. It's a good deal if you have self-discipline.

hope this helps

[Patch]

Credit cards get a lot of folks in financial trouble. With plastic, a person is basically spending money they don't have. 

I don't have a credit card. I have a savings account that is attached to a visa debit card. This is what works for me when I need a larger ticket item. 

Every once in a while I might take a loan out at the bank to keep my credit rating current,  just incase. 

In today's financial environment, for quite a few folks, the old saying that if you don't have the money for it,  then you don't need it,  holds a lot of truth. 

[newtogolf]

9 minutes ago, Patch said:

Credit cards get a lot of folks in financial trouble. With plastic, a person is basically spending money they don't have. 

I don't have a credit card. I have a savings account that is attached to a visa debit card. This is what works for me when I need a larger ticket item. 

Every once in a while I might take a loan out at the bank to keep my credit rating current,  just incase. 

In today's financial environment, for quite a few folks, the old saying that if you don't have the money for it,  then you don't need it,  holds a lot of truth. 

You should be careful about using debit cards due to identity theft and credit card fraud.  If someone steals your credit card number, the credit card company handles the loss prevention and you are not financially impacted.  At many banks if someone steals your debit card the balance in your account will be withdrawn and may not be replaced immediately.  

I used to use debit cards all the time and now I don't even keep my debit cards on me, i do everything with credit cards and pay the bill at the end of the month.  

[Patch]

3 hours ago, newtogolf said:

You should be careful about using debit cards due to identity theft and credit card fraud.  If someone steals your credit card number, the credit card company handles the loss prevention and you are not financially impacted.  At many banks if someone steals your debit card the balance in your account will be withdrawn and may not be replaced immediately.  

I used to use debit cards all the time and now I don't even keep my debit cards on me, i do everything with credit cards and pay the bill at the end of the month.  

I am thoroughly protected against such problems. I have a very good financial guru in Ft Worth. No worries here. 

[iacas]

9 hours ago, skeedawg said:

I have to concur with going all cash crowd here.

FWIW I put almost every purchase (except small stuff - a few bucks) on my one credit card.

I just pay it off every month. I generally don't like cash, but I call it "cash-backed purchases" as everything will be paid for before it accrues interest.

And we get a nice bonus discount off our December bill for the "cash back" on our CC.

CCs are too convenient.

[70sSanO]

20 hours ago, Kalnoky said:

W/ re: to your FICO score keep your credit card debts at under 30% of the card limits.

This is the answer to your original question about using one or two cards.  It all comes down to the percentage of the card's limit.  You don't want to push close to the card's limit.

If using one card takes you over 30% you may want to split it, if not it probably doesn't matter.  But I'm not a financial planner.

John

[Hacker James]

6 minutes ago, 70sSanO said:

This is the answer to your original question about using one or two cards.  It all comes down to the percentage of the card's limit.  You don't want to push close to the card's limit.

If using one card takes you over 30% you may want to split it, if not it probably doesn't matter.  But I'm not a financial planner.

John

thank you John. That is more or less the same conclusion I've  come to. My debt ratio is a little high over all and around 40%. Paypal credit would be a good option but I doubt if a fitting shop could participate.  I think my best bet will be to delay the purchase for 6 months and save up the cash. I should be able to do that as it would amount to the same thing if I were to use Pay Pal credit.  

[boogielicious]

On September 16, 2016 at 11:29 PM, iacas said:

FWIW I put almost every purchase (except small stuff - a few bucks) on my one credit card.

I just pay it off every month. I generally don't like cash, but I call it "cash-backed purchases" as everything will be paid for before it accrues interest.

And we get a nice bonus discount off our December bill for the "cash back" on our CC.

CCs are too convenient.

My wife and I do the same and we've taught our son to do this.  CCs are also safer to use in some situations, especially traveling overseas. The cash back aspect works too, so I put most purchases on the card for that reason.