Do you cash flow or use credit?

[holdthephonio]

Conversation with a friend who suggested that EVERYONE uses Credit of some sort like, credit payments (sofas etc) , credit cards, overdrafts, loans etc I have personally never used any of them (to which she was astounded!) For me it's simple if I don't have the money then it doesn't happen. I save for everything.

Do you cash flow everything or use credit regularly?

Neither. I use a credit card to pay for most purchases but pay it off each month. I have a cashback card so it earns me money. I use some carefully considered credit (mortgage, pcp on my car) which costs me money in interest, but I'm happy that I'm getting a good product for a good deal.

I don't think credit is bad or should be looked down on, you come across as quite superior

Cash flow. The only time I have used credit was for about three months, to buy furniture for my first place, I paid it off as planned and don't use it for anything else. I've always been a saver since childhood.

I use credit card for big purchases or anyhting that could be risky where it might be useful to have the credit company as a backup. I try not to buy anyhting that I cannot afford and I try to pay off the card every month. Sometimes I pay off slower depending on the interest rate in card and on the savings account and see which makes sense more.

I use credit cards, but always have the money not to and always pay the credit card balance in full each month so don't pay charges/interest etc. I use credit cards for convenience and for the security of easier refunds if something goes wrong using buyer protection. There was only one month when I intentionally paid for things by credit card knowing I couldn't pay it off on time - that was 40 years ago in my first job on ridiculously low wage and needed a little bit of credit to pay for study books, so more of an investment than a luxury - I paid it off over 2 months instead of one and paid a few pounds of interest.

I use cards all the time because it is easier than using cash or sending cheques.
Debit card transactions get paid immediately so not a form of credit payment.
The credit card bill is set up so that it automatically gets paid in full every month when due.
No loans, overdrafts or credit payments and I have never used any.

The only thing I have on credit is our mobile phones which are on contract. For other stuff if we don’t have the money we don’t buy it.

Never use credit only thing I have is my Mortagae.

If I can’t afford it I save until I can

I use credit for things like sofas and TVs; it kind of started the cycle when I first moved into a house as I didn’t have the money to buy those things and couldn’t wait the year it would take me to save for it so got credit and now I can’t get ahead of myself to both pay off the credit and save for a new one so whenever we need new we end up using credit

I also use it for things like car insurance as it’s cheaper to pay as a lump sum; I never pay interest though as I chose 0% and pay it off in time

I have used credit cards in the past for big purchases like holidays but not for everyday use. I've also used them for things like unexpected repair costs when my car stopped working very suddenly. Always pay them off as quickly as I can and have a decent credit rating. I've also had an overdraft for when I was on a very low income and needed that extra cushion. Never taken out a loan.

At the moment we are first time buyers trying to get our first mortgage so not putting any big purchases on credit at the moment.

We buy everything on our credit card but this is paid off in full each month so no charges or interest. We have a sofa we pay for monthly but it's interest free so doesn't cost any extra to pay this way. We don't use our overdraft at all and tend to keep our savings at a certain level so if we need something we can buy it then build the savings back up again.

Same as you ! I’m a thrifty little saver and update my excel almost every other day

I have a couple of people who tease me
But fuck them as I love having a financial buffer
And no designer items 😀

I have zero credit. The way I see it is if I can afford to pay monthly payments to pay something back, then I can afford to save up for it. I'm a big saver though, and that's just me. I refuse to pay any interest!

I have an overdraft facility and credit card but I rarely go overdrawn or have a cc balance. It's nice to know that they're there for emergencies though. At the moment I'd really like to buy a new fridge and a new bed but I don't have the cash (well, it's earmarked for other things) so I'm going without. If the fridge suddenly died or the bed collapsed, I'd use credit if I needed to.

Though to be honest I'm a bit cheap so I'd probably leave the mattress on the floor until I'd saved up

Always use credit card and pay it off in full each month.

I use a credit card within my means for my day to day spending and pay it off each month. I don't need the credit but I get cashback by doing that, adds to my credit score and gives me a safety net in case of rogue traders.

We also use credit sometimes even when we do have the money. We bought our mattress on finance because it was interest free and we could spread the payment without knocking £800 out of our savings instantly, in case we needed that for something else. Where it's interest free and you pay it back within the time period I really don't see the harm.

Cash flow. I use a credit card but only when I know I have the money in my bank account to pay it off. My DDad always taught me the only debt I should have is my student loan and mortgage.

By the way I swear by You Need a Budget, I'm sure it's the reason why I don't have credit card debt.

We use both. We have furniture on 0% interest and a 0% interest credit card for large purchases. I also have a mobile phone plan on credit and a home development loan (plus mortgage). Everything else is paid in cash. If I can pay for things outright I prefer it (unless it’s interest free), but very large purchases that would take many years to save for I don’t mind taking out credit for, I personally think the interest we pay (if any) is worth it to avoid having to save and wait for years (others may disagree, but this is my perspective). I have an excellent credit score, so any interest I pay is usually very low or 0%.

I get 2% cash back on my primary credit card so everything goes on there and then I pay it in full every month, so I never pay any interest charges or fees.

I pay for most things by credit card but is paid off in full automatically at the due date. The only thing that Is on credit is the house. I've never had a loan for anything else.

I do buy things with a cc but always pay in full every month . If I can’t afford something I go without .

I should add that I have nothing against credit as long there is the means to pay it back. The world would grind to a halt if nobody borrowed anything.

@LoisLittsLover no not superior at all, I just don't like the idea of credit. But I don't look down on those who do. I just like to save for things that I need/want is all. It takes longer yes but that's just how I do it.

Only loans I ever had are student loan and mortgage. I don’t like paying interest on things.