Friday, December 11, 2009

News from the Financial World

In a very interesting move, Suze Orman is now advocating using cash only -- no credit cards. She says she's sick of companies taking advantage of us by increasing fees, interest rates and so on.

A lot of people are agreeing with her, and cancelling their cards.

I am wondering, though -- a lot of this misuse -- and abuse -- has been going on for years. How come it's suddenly so important to Suze? Because her customers are soooo broke now? And so many are unable to pay their debts?

There are some who argue that you are 'willing' to pay more when you use the card, versus pay for cash. (Or at the very least, you'll buy more.) I can see this point. But what if you deliberately limit yourself, even when using cards?

We get enough cash (and points) back every year to justify continuing our usual practice -- charging everything possible, but paying it off each month. No exceptions. (And we've only missed doing that three times in 28-plus years -- two by accident.) What about that, Suze? Wouldn't that be the best of both worlds?

What do you think?


Allison Ann Aller said...

We never carry debt month to month! So we definitely enjoy the rewards we get from our credit card (airline miles).
I do make a point of paying cash to small business local merchants, though. The credit card fees they have to pay really eat into their meager profits...

Yvonne said...

In case you're wondering why I comment so regularly.... I have "Morning Coffee," an extension on Mozilla Fox, that opens up preset tabs customized for every day. Your blog is one of three that opens automatically.

I think you have the right idea, mainly because we do the same thing with credit cards. We take advantage of many offers, paying them off at the end of every month. Gas discounts, air miles, and "bonuses" off on all charges... can't beat that. Not all people are as disciplined as you are, though, and get caught up in the "if I can make the payments I can afford it" idea, while their debt creeps upward.

Karen South said...

I'm with you Cindy. I use my cc as much as I can - earn the rewards and pay off each month. Best of both worlds for now. I'm sure the cc companies will find a way to stop this practice some day soon.

Cindy Brick said...

So would you agree, then, that pointing to credit cards -- and not dealing with our spending patterns -- is throwing the baby out with the bathwater!
Thanks, all, for's nice to hear your viewpoints.

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