first time I used my credit card :(
#21
Posted 2010-February-22, 12:41
Obviously if you can't pay off the balance every month, it's retarded to use a credit card because of penalties.
Obviously if you're so rich that the present value of your cash is substantially higher than the future value, credit is a clear choice.
If you're somewhere in between, perfectly sound arguments can be made for both sides.
bed
#22
Posted 2010-February-22, 12:51
http://en.wikipedia....come_hypothesis
Who bears the burden of credit card costs?*
http://en.wikipedia....i/Tax_incidence
*At least in my opinion the added price of the credit card transaction is like a tax on goods, except levied by the credit card company. I argue this is the case since the vast majority of places do not have a difference in pricing by form of payment.
#23
Posted 2010-February-22, 15:33
There are a lot of folks out there wanting to grab a piece of every transaction. I am delighted to see them cut out of this one.
#24
Posted 2010-February-22, 20:08
It's like the free WiFi that many businesses offer. It gets people into the business, and they spend money there.
It's very similar to the "loss leader" philosophy: by losing money in one part of the business you can make money in another part.
#25
Posted 2010-February-23, 05:44
Plastic has its uses, that's true. But only sometimes. In the case of my new porch, it's a fair bet that a person who cannot pay cash should not be buying one. It will be nice, but not worth going into debt over. So it's write a check now or use plastic now and write a check at the end of the month. Actually it's spread over several checks as the job goes through stages but you get the idea. The sole purpose of using plastic would be to get the rebate at the end of the year, convenience doesn't enter into it. At some point it makes sense to cut out the cc companies from this transaction, otherwise I guess people could buy a house and put it on Visa. One hell of a rebate at year's end. That cash has to come frmo somewhere.
#26
Posted 2010-February-23, 10:52
kenberg, on Feb 23 2010, 06:44 AM, said:
From the fees stores pay, and from irresponsible users who don't pay off their balances. I don't see why that should concern me.
#27
Posted 2010-February-23, 11:00
'good" way to get people to go after the "cash" in the system that they will be using to inflate away the economy...
#28
Posted 2010-February-23, 11:21
jdonn, on Feb 22 2010, 07:34 PM, said:
helene_t, on Feb 22 2010, 10:35 AM, said:
You are taking a strong moral stand which is financially illogical Everyone else paying for something that you can use to your benefit is a good reason to do it, not a good reason not to.
Nothing illogical about factoring in the costs to society/shops/othercustomers when making decisions. Maybe oldfashioned and/or crazy, though.
If I were to make a living of screwing the shops, I would prefer shoplifting to credit card usage. After all shoplifting has less overhead.
Oh no I didn't think of the costs of prosecuting me and keeping me in prison. Maybe more economically effective to abide to the law. Have to think about it.
#29
Posted 2010-February-24, 21:08
H_KARLUK, on Feb 17 2010, 08:50 PM, said:
In the U.S. credit card companies send offers to infants, dead people, and pets. Anyone can get a credit card.
#30
Posted 2010-February-24, 21:10
kfay, on Feb 18 2010, 10:45 AM, said:
Of course he's got an awesome job so can assume the risk but he tells me he's in the black at this point, even considering everything that happened last year...
Isn't he paying 3% fees every time he rolls it? Which isn't smart?
#31
Posted 2010-February-24, 21:14
Rain, on Feb 17 2010, 10:29 PM, said:
College students are also more likely to run up a balance, incur interest/late fees, etc because they are generally less mature and knowledgeable than older adults. I guess they are also less likely to file for bankruptcy because parents will bail them out.
#32
Posted 2010-February-24, 22:03
Apollo81, on Feb 24 2010, 10:14 PM, said:
Rain, on Feb 17 2010, 10:29 PM, said:
College students are also more likely to run up a balance, incur interest/late fees, etc because they are generally less mature and knowledgeable than older adults. I guess they are also less likely to file for bankruptcy because parents will bail them out.
I guess it is just me and I am old..but to keep hearing how parents bail out 18-22 year old students shocks me....are you parents that rich?
I mean I thought we are in a recession/depression....yet everyone has a cell phone/lexus/bluetooth that has pedal issues.
#33
Posted 2010-February-25, 13:31
Apollo81, on Feb 24 2010, 10:10 PM, said:
kfay, on Feb 18 2010, 10:45 AM, said:
Of course he's got an awesome job so can assume the risk but he tells me he's in the black at this point, even considering everything that happened last year...
Isn't he paying 3% fees every time he rolls it? Which isn't smart?
Not if you look out also for the 1-time 0% balance transfers.
#34
Posted 2010-February-25, 16:29
Practice Goodwill and Active Ethics
Director "Please"!
#35
Posted 2010-February-26, 18:59
Luckily for us there are plenty of people who don't pay off their balances. They're subsidizing the vendors and those of us who do.
#36
Posted 2010-February-26, 21:56
I told him to call the cops. Then the manager came over and smacked him upside the head. :-)
As for tv, screw it. You aren't missing anything. -- Ken Berg
I have come to realise it is futile to expect or hope a regular club game will be run in accordance with the laws. -- Jillybean
#37
Posted 2010-February-26, 23:12
blackshoe, on Feb 26 2010, 10:56 PM, said:
I told him to call the cops. Then the manager came over and smacked him upside the head. :-)
The infliction of cruelty with a good conscience is a delight to moralists — that is why they invented hell. — Bertrand Russell