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Here’s a simple poll that I’d like everyone to participate in for the next upcoming article on Nobs Invest.
It’s a real simple question, and since you could answer anonymously (don’t shy away!), do you have the habit of owing credit card debts?
I’d appreciate much of everyone’s input, and if you’re generous enough, drop me your experience via comments! 
Are You In Debit with your Credit Card Company?
We use our credit cards daily for things like gas and on-line purchases. My husband only carries enough cash for lunch with him and always has the card handy. We only get caught with our pants down when something MAJOR and unplanned for happens. We’re still managing debt from a sudden family illness/death and substantial travel expenses last year, as well as the sudden demise of our refrigerator and dishwasher. Though we prepare in advance for most things, sometimes items like those do “catch you” and even if you’re solvent, you can’t/don’t necessarily take the money out of other places to pay those expenses immediately.
Thanks for sharing Michelle.
The great thing about credit cards is that they can come in handy during emergencies like what you’ve experienced. And to some, especially people like me who charge my cards for my usual bills, you’ll earn some sort of reward points to redeem for something in the near future.
Indeed, a credit line is really important for emergencies.
I do not own a credit card..
i have an ATM card for one bank account that is also Visa Electron and so it acts as a debit card charging my account directly but i only (rarely) use it for online purchases from abroad..
i usually carry enough cash with me to cover emergencies
Cash is always king, but the thing about using a debit (Especially for online purchases) is that there’s no extra layer of protection, and it gets directly debit from your account.
At least for credit card, you can always file for a chargeback if you are a victim of card fraud.
Thanks for sharing Gaby!
credit card debt is one of the worst debts to have (it’s 24%pa in singapore), so, nope… no cc debt for me. will pay off every cent everytime. the only debt i consider taking up is mortgage loans.
i have heard of real life cases where pple go bankrupt due to credit card debts that ballooned to a couple of hundred thousands. very sad.
mfalcon
That’s really sad. Is he a friend of yours? Yes, its 24%PA, meaning 2% compounding interest every month that you don’t settle your bill (IN FULL).
I’m in Singapore too. You know that if you don’t settle your bill in full, they’ll charge the interest base on the full amount on your bill still? I was surprised to hear that from a friend.
Thanks for sharing mfalcon
hi jude,
hope you are enjoying it here in singapore. yeah… a friend, unfortunately. the interest will be charged against your outstanding amt as well any other amt that’s subsequently charged to the card (even though this amt is not due for payment yet). many pple don’t know this and think they will have no problems settling the outstanding amt.
i use credit card to get points (not for air miles, but for vouchers, and stuff). the points do not expire annually, so can accumulate quite a fair bit.
I get what you mean. It’s nice to always have someone to pay for your cinema tickets or shopping from time to time isn’t it?
As long as you pay your credit card bills that is.
We have debit cards and a credit card.. we use the credit card for airline miles and pay it off monthly.. we also use a credit card once in a while when there are special offers of no interest and no payments, then we’ll pay it off before the interest kicks in..
Hey Don! Good to see you here and thank you for sharing!
It’s really about shifting it properly as to occur the minimum or totally zero interest at all.
What’s the debit cards use for, mind if I ask?
Not very much anymore, since we want to accumulate airmiles.. But when we do use them it is in leiu of writing a check.. If I do use my debit card for online purchases it is protected, same as a credit card..
Debit card has protection? I haven’t really heard about that, interesting!
Thanks for getting back Don
The best use of credit cards if like a regular debit card, but with added benefits like fraud protection, extended warranty, air miles and the ability to pay off the bill in one shot at the end of the month. Sadly, most people use it to buy stuff they cannot otherwise afford.
If you have not saved up for an item, you should NOT buy that item. You will be less likely to purchase an item “just because” if you follow this rule.
If one must use a credit card for expenses, it should ONLY be for unforeseen emergencies, that too if it is outside the scope of the regimented 6 months household expenses emergency funds.
Right, spend money wisely is the #1 tip here. Delay gratification and separating a want from a need. Use it only for emergency.
Haven’t really talked to you for awhile Levaz, how’re you!
I only have one credit card now that I use, a dept. store card. After being in trouble several years ago, I almost exclusively use a bank debit card now. Now that I have been behaving myself, I am getting tons of credit card offers again. Nope, not falling into that trap again. Live and learn.
Best to all.
A. S. (Andy)
It isn’t surprising that most youngsters fall into the ‘look good, spend money first’ trap with all the advertisements and the lifestyles potrayed on TV.
Well good for you Andy! And Good luck to your credit ratings! (tsk, tear away those offers if you can :P)
Secured Home Loans for UK Homeowners…
links to good articles on secured loans / homeowner loans…