Liowc, I have to disagree with you again. Why do you think people always tell one another that credit cards are used for unexpected emergencies. If you don't know what that means, then allow me to break it down for you. Unexpected is not knowing when and an emergency is something you need and you need it FAST! So if there's a couple who have 5 children and they just realized that they ran out of diapers and the husband had been fired from his job a few days ago, what they are supposed to do? Go to a local bank and file an application for a loan? They can't do that with their babies crying because they feel hungry and violated. So what's their only option that they can use to buy the necessities for their children? Credit cards!

You're not the only one that has to pay these high interest rates, we all do! So stop making good people look like criminals just because they had to take care of their families when they were in need. No one wants to file BK purposely, no one wants to screw over the banks, but if you don't have the money to back it up, what can you do? That's just reality. Don't blame the people, blame the government for spending all of our money into the war and killing our economy. If so many people didn't lose their jobs, do you think there would've been so many foreclosure homes and so many people filing BK? I think not.

Hi HJM

You should be able to fund your purchase whether a minor a major one when you can pay up in full by payment due date. If you can't, either forego the major purchase (until you have the means to do), or borrow the money from somewhere else such as a overdraft with a lower interest rate.

Liowkc, what other alternatives are there other than using a credit card for major purchases?

Heelllloooooo!

What is your meaning of the bottom-less pit? Please don't tell me it is heaven!

Nice taling to ya!

Hi Meya

The bottomless pit is the credit card mess that one you get into when he or she starts rolling his/her balance; it certainly not heeven but maybe hell.

Nice talking to you.

What is your meaning of the bottom-less pit? Please don't tell me it is heaven!

Nice taling to ya!

Hi Meya and HJM

This is where discipline come in; one person's idea of necessity is luxury to another.

As to major purchase that is needed, try other means other than credit cards - getting into the bottomless pit is easy - getting out almost never.

I was just faced with this issue Thursday HJM. I had to purchase the Texas instrument graphing calculator which cost $120 freaking dollars. The only, only, only, thing that prevented me from having to use my credit cards is because I had just finished a clients hair for the day that and I kept the cash in my pocket because I was running late for school.

If I did not have the cash, I would have purchased with my credit card and probably paid it back the same moth or next month, regardless, it will not drop my scores. If the score did drop it doesnt matter when you are not out looking to apply for credit, scores drop and raise day by day anyway.

Yes, I agree with youa again!

Liowkc, I also support the concept where people shouldn't put charges on their cards if they can't pay for it. But if someone needs something at the time but they don't have to money to buy the item, what's their only way of buying their necessities? Credit cards.

Let's say a student is going to school, right. They enroll into a class where the professor/teacher requires them to have a laptop in order to be able to participate in the curriculum. If that student doesn't have at least $1,000 to buy a laptop that he needs for school, what is he going to do? Drop out of the class? I think not. He is going to buy that laptop and pay it off slowly with the job he/she works at during the morning/afternoon/night.

H Meya

First you should not charge anything to your card if you cannot pay by due date; and in the event that you di so, pay of the balance as soon as possible by your own resources or any credit instrument.

On your scenaro about different od rates charged by banks, switch if the amount and the interest saving is worth it. You have to judge this one yourself

that is my view and you are sure to disagree

You are correct on that one, but that is something different from a credit card because if you want to go and purchase a particular item, walking into a bank for a loan is not the thing to do and your unsecured over draft is not there for that purpose, your credit/debit cards are.

But I have a question about that since you brought it up. Ok, the unsecured overdraft, at my by bank they charge you $18 if you so happen to use the overdraft, and my siter bank charges her $22 for it. In my opinion, what is the difference between that and just getting hit with a $17 overdraft itself? Niether one hits your credit report (only if you dont pay). I am aware that it doesnt look good at your bank, but what is your opinion about it?

Hi Meya

On a serious note, there are loan instruments such as unsecured overdraft, personal loans and secured loans that offer much lower interest rate than credit cards.

Also I am debt free but stilll hold quite a number of cards - the purpose of credit cards is NOT for borrowing .

I know finances may be tight and you may need credit,

Life is always tight, the more you make, the more you spend, if someone was in the point where they dont need credit, they would not apply.

Liowck

use other loan instruments that has a lower interest rate

Like cash!

Hi Meya and HJM

Iife is geting real complicated with all the disagreements I know finances may be tight and you may need credit, but do NOY borrow from credit cards, use other loan instruments that has a lower interest rate