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The secret lives of America’s debtors

admin — Sun, 28 Feb 2010 18:28:25 +0000

Americans are loaded up with credit card debt. What’s worse is that some husbands, wives and even children hide those money woes from their families. The results are often devastating.

February 7, 2010 — Reader Story: How I Learned to Stop Worrying and Moved in with Mom
July 9, 2009 — Credit Card Balances Fall for 8th Month
July 9, 2009 — Credit Card Balances Fall for 8th Month
February 8, 2010 — Just Saying “No” to Credit Cards
October 8, 2009 — Avoiding Holiday Debt Starts Now
September 4, 2009 — My Debt Story: An Introduction
August 15, 2009 — The “Do-I-Have-Enough-For-This?” Effect
July 31, 2009 — What We Wish We Knew When We Were Younger
July 22, 2009 — Dave Ramsay Talks Recession Silver Lining
May 12, 2009 — How to Make (or Break) Your Credit Score

Just Saying “No” to Credit Cards

admin — Mon, 08 Feb 2010 20:37:34 +0000

For nearly a decade, I lived without a personal credit card. In 1998, I destroyed all my cards and canceled my accounts in a last-ditch effort to curb my compulsive spending. It worked (sort of), and it wasn’t until 2007 that I finally felt like I was responsible enough to use credit wisely without going into debt. (And so far, it’s been smooth sailing.)

What was it like without credit? Surprisingly easy, actually. Though a lot of folks will tell you that it’s impossible to rent cars or get a hotel room without a credit card, that’s just not so. A debit card lets you do all of these things, too. (Though, to be fair, companies will often put “holds” of several hundred dollars on a debit card when you rent cars or stay in hotels.)

To be honest, I didn’t miss having a credit card when I was living without one. I never encountered a situation where a credit card was required. Not once.

Writing in this morning’s USA Today, Sandra Block says that more and more consumers are saying “no” to credit cards:

In a country where the average consumer owns five credit cards, [folks without credit cards] may seem somewhat quaint, like an Amish farmer who drives a horse-drawn buggy. But proponents of a no-credit-card lifestyle say there’s nothing old-fashioned about their choices. And they’re convinced that their numbers will grow as consumers become increasingly disenchanted with credit card industry practices.

The author points out that credit card usage is slowing rapidly. National credit card debt fell by nearly 20% in November; new credit card accounts are down almost 50% from a year ago; and even folks who do use credit (73% of Americans, according to the Federal Reserve) are using credit less often. (IndexCreditCards.com, a credit card comparison website, also released a report on how average credit card debt has dropped to $3,752 from $4,013 in their last report from July 2009.)

Block’s article profiles several Americans who have decided to declare: “No credit needed!” Among them:

Emily Maddox (24 years old), who has never had a credit card and has no plans to get one. They make her nervous.
Dann Zinke (22), who is saving for college. He thinks credit cards are a hassle.
Our very own GRS staff writer, Adam Baker (25), who opts to live without credit cards because it’s easier to track spending and helps him live a simpler lifestyle.
Luis Rosas-Guyon (37), who finds that since he gave up credit cards ten yeas ago, his life is less stressful.
Tim McFarlin (34), who ditched credit cards because he thinks the industry’s practices are unfair to consumers.

There are tons of different reasons to live without credit cards. (For my book, I interviewed three different folks who live by the “no credit needed” motto, and each had a different motivation.) The policy has some drawbacks — credit cards do offer consumer protection and other benefits, and they help you build your credit score — but I know from first-hand experience that living without them is a perfectly valid choice. It’s not only possible, but can be profitable as well.

How many of you live without credit or have done so in the past? I know from past conversations that there are some die-hard credit-card users around here (and these are folks who use them wisely, not irresponsibly), and there are also some die-hard “no credit needed” folks. I think both camps have merit, and the important thing, as always, is to do what works for you.

[USA Today: More consumers just say no to credit cards]

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Related Articles at Get Rich Slowly:

September 24, 2009 — Are Debit Cards Evil, Too?
February 28, 2010 — The secret lives of America’s debtors
February 7, 2010 — Reader Story: How I Learned to Stop Worrying and Moved in with Mom
October 21, 2009 — Should You Stop Funding Retirement to Focus on Debt?
October 19, 2009 — Secret cash advances worry wife
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 7, 2009 — The Pitfalls of Prepaid Debit Cards
September 29, 2009 — Your Credit Report Card
September 17, 2009 — 11 Ways to Spice Up Your Emergency Fund

Credit card hikes raise Congress’ blood pressure

admin — Wed, 28 Oct 2009 19:20:35 +0000

As credit card companies continue raising rates and fees, lawmakers are considering bills to stop such hikes until new credit card laws take effect.

September 1, 2009 — New Measures to Protect Kids From Debt
September 1, 2009 — New Measures to Protect Kids From Debt
September 1, 2009 — New Measures to Protect Kids From Debt
June 29, 2009 — What You Buy Affects Your Credit
February 28, 2010 — The secret lives of America’s debtors
February 8, 2010 — Just Saying “No” to Credit Cards
October 23, 2009 — 5 evil things credit card firms can (still) do
October 19, 2009 — Secret cash advances worry wife
October 16, 2009 — Credit Card Offers 79.9% Rate!!
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links

5 evil things credit card firms can (still) do

admin — Fri, 23 Oct 2009 08:08:00 +0000

The credit card reform bill tries to help cash-strapped customers, but companies are just coming up with new ways to boost profits.

September 24, 2009 — Your teen’s credit is your problem
October 16, 2009 — Credit Card Offers 79.9% Rate!!
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 7, 2009 — The Pitfalls of Prepaid Debit Cards
September 9, 2009 — 6 Ways to Destroy a Credit Card Securely
September 9, 2009 — 6 Ways to Destroy a Credit Card Securely
September 1, 2009 — New Measures to Protect Kids From Debt
September 1, 2009 — New Measures to Protect Kids From Debt
September 1, 2009 — New Measures to Protect Kids From Debt

Secret cash advances worry wife

admin — Mon, 19 Oct 2009 04:01:00 +0000

If spouses have separate credit card accounts, should they be accountable to each other? Also: How card issuers view cash advances.

February 8, 2010 — Just Saying “No” to Credit Cards
August 18, 2009 — A Small Mistake: My Introduction to Two-Cycle Billing
June 25, 2009 — Don’t be Fooled by Discover’s ‘Cash Over’
May 21, 2009 — Will Cardholder Protection Law Hurt Us?
February 28, 2010 — The secret lives of America’s debtors
October 28, 2009 — Credit card hikes raise Congress’ blood pressure
October 23, 2009 — 5 evil things credit card firms can (still) do
October 16, 2009 — Credit Card Offers 79.9% Rate!!
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links

Credit Card Offers 79.9% Rate!!

admin — Fri, 16 Oct 2009 16:10:55 +0000

Yes, it’s true. It’s not a joke or a misprint. First Premier Bank is offering a “Premier Card” credit card with a 79.9% APR. That’s right, 79.9. And it’s not just the interest rate that’s outrageous. The fees are pretty hideous, too.

October 23, 2009 — 5 evil things credit card firms can (still) do
October 7, 2009 — The Pitfalls of Prepaid Debit Cards
September 24, 2009 — Your teen’s credit is your problem
September 9, 2009 — 6 Ways to Destroy a Credit Card Securely
September 9, 2009 — 6 Ways to Destroy a Credit Card Securely
September 1, 2009 — New Measures to Protect Kids From Debt
September 1, 2009 — New Measures to Protect Kids From Debt
September 1, 2009 — New Measures to Protect Kids From Debt
July 12, 2009 — Protect yourself from a credit card backlash
May 4, 2009 — Secured Credit Cards Harder to Get

Your Brain Wants to Waste That Gift Card

admin — Mon, 12 Oct 2009 18:32:24 +0000

A new law will extend gift card expiration dates. But psychology says this will only harm consumers more.

October 9, 2009 — The New ‘Free’ Credit Reports: A Good Deal?
October 7, 2009 — The Pitfalls of Prepaid Debit Cards
October 7, 2009 — Congress is riled up – Overdraft fees
July 12, 2009 — Protect yourself from a credit card backlash
May 21, 2009 — Will Cardholder Protection Law Hurt Us?
February 28, 2010 — The secret lives of America’s debtors
February 12, 2010 — Plan Your Gift-Giving to Save Time and Money
February 8, 2010 — Just Saying “No” to Credit Cards
October 28, 2009 — Credit card hikes raise Congress’ blood pressure
October 23, 2009 — 5 evil things credit card firms can (still) do

The Credit Crunch, Vol. 1: Five Useful Links

admin — Thu, 08 Oct 2009 21:41:44 +0000

• “Prepaid, but Not Prepared for Debit Card Fees”: The New York Times

• “Credit Cardholder’s Bill Of Rights: Sooner Would Be Better”: The Wall Street Journal
• “Investigating Old or Inaccurate Addresses on Your Credit Report and Why You Should”: MasterYourCard.com
• “How to Improve Your Credit Score When Paying Down Debt”: NoDebtPlan.net
• “Gen Y Faces Credit Hurdles”: The Sydney Morning Herald

October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 7, 2009 — The Pitfalls of Prepaid Debit Cards
February 8, 2010 — Just Saying “No” to Credit Cards
October 23, 2009 — 5 evil things credit card firms can (still) do
September 24, 2009 — Are Debit Cards Evil, Too?
June 10, 2009 — Even Smart People Make Credit Mistakes
February 28, 2010 — The secret lives of America’s debtors
October 28, 2009 — Credit card hikes raise Congress’ blood pressure
October 28, 2009 — The Pitfalls of Buying in Bulk
October 19, 2009 — Secret cash advances worry wife

The Credit Crunch, Vol. 1: Five Useful Links

admin — Thu, 08 Oct 2009 21:41:44 +0000

October 8, 2009 — The Credit Crunch, Vol. 1: Five Useful Links
October 7, 2009 — The Pitfalls of Prepaid Debit Cards
February 8, 2010 — Just Saying “No” to Credit Cards
October 23, 2009 — 5 evil things credit card firms can (still) do
September 24, 2009 — Are Debit Cards Evil, Too?
June 10, 2009 — Even Smart People Make Credit Mistakes
February 28, 2010 — The secret lives of America’s debtors
October 28, 2009 — Credit card hikes raise Congress’ blood pressure
October 28, 2009 — The Pitfalls of Buying in Bulk
October 19, 2009 — Secret cash advances worry wife

Help your child manage credit

admin — Thu, 08 Oct 2009 21:06:25 +0000

In recent years college students could get credit cards almost as easily as they could score beer. Some 84% of undergrads have at least one card, a Sallie Mae study found, and half carry four or more.

July 16, 2009 — Kids’ credit cards
October 6, 2009 — Ask the Dolans: How Can I Improve My Credit If I Don’t Have a Credit Card?
February 28, 2010 — The secret lives of America’s debtors
February 24, 2010 — How Much Does Canceling Credit Cards Affect Your Credit Score?
February 8, 2010 — Just Saying “No” to Credit Cards
October 28, 2009 — Credit card hikes raise Congress’ blood pressure
October 23, 2009 — 5 evil things credit card firms can (still) do
October 22, 2009 — Trashing old credit cards? Be careful
October 19, 2009 — Secret cash advances worry wife
October 16, 2009 — Credit Card Offers 79.9% Rate!!

Follow My Money - Financial Advicer, Money Management, Debt Free Tips » card

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