To think most people don’t actually pay off their credit cards in full each month?

[PoliteCyanViewer]

I always hear advice about clearing your balance each month to avoid interest but how many people actually do it? With the cost of living, unexpected expenses, and temptations everywhere, is it realistic? Do you pay yours off in full or do you carry a balance?

I always do.

Completely agree with you.

I have been in situations where my dh has been made redundant, we’ve had a roof that needed work done (wasn’t covered by insurance) and no savings and no way to pay for it otherwise. We used a 0% cc to do a money transfer as it was the cheapest way of borrowing money. We then had a toilet crack (£250 to fix / replace / repair) and then our boiler needed £450 of work done. It was easy to end up with quite a hefty cc debt. So what else could we have done in that situation? No one would buy a house with the problems it had if we tried to sell it, and we’d make a loss on it unless we fixed them first, we could afford to pay the debt back monthly, but not in full. It made sense to do it that way.

Thankfully dh got another job and we’ve been hacking away at it all since.

If you’re a fairly high income family and have been able to squirrel away rainy day money or live in rented accommodation where a landlord will step in to fix broken stuff it’s easier to stay out of debt (although yes obviously renting has less security than owning etc) but I really hate it when people are judgy about people using cc or being in debt. If you haven’t had to be in that situation you are lucky.

My husband and I have always worked as “we”. I was 18 when he got his first credit card and I was an additional cardholder. I’ve been an additional cardholder on every card he’s ever had since then. “We” as a team don’t spend more than we have. I do have my own card now as I realised I’ve never had credit in my own name (apart from mortgage which was paid off years ago). Bank account is joint and either one of us can pay off any of the cards as all the details are saved in the payments part of the app. We don’t have to actively tell each other anything. It’s all there on the app, no secrets, no issues, totally straightforward.

I do now, although didn't when I was younger, cost myself loads with the 'free' money! I mainly use it for holidays, or other big purchases, for the protection. If I've not got to go on it I put maybe £50 on just to keep my credit rating up. After racking up debt in my 20s I absolutely hate the thought of owing money now!

I have had a credit card for nearly 30 years and have always paid it off.
I use it for various reasons - one the added insurance, the rewards (we have 3 now one cashback one nectar and one that doesn’t have foreign transaction fees. Finally the get paid 4 days after salary come in so it is a form of spending management.

the only thing that has changed as we get older is how much we can spend on it!

I do because I would hate paying interest to the thieving ratbags of banking. They get nothing from me, 👍🥂

I do, for the Tesco clubcard points and buyer protection. I also have a Halifax one which I use abroad as it has a great exchange rate.

Most people I know do.

Which credit card do you have for Clubcard points? Is there any advantage over having a Tesco Clubcard?

We do. We put everything on credit cards for points but pay off right away - don’t even wait for statement etc

For what I assume is the majority of married couples, it's at least or more straightforward to share finances and know that there is no debt, or if there is, exactly what it is. We rarely discuss finances, certainly not "constantly", as there is no need because we both have access to it and the information.

We each have individual daily spending credit cards, although are authorised users on each others. DH has Amex, I have Mastercard, so they are used by both where they are accepted or will gain the best rewards. Both with a DD to pay in full each month.

If I spot an unusual transaction on my card , I will check with DH if it was his purchase, in case it is fraudulent, but don't question the specifics of what he bought. I might gently tease him if he bought a sneaky treat from a bakery on my card for example, as I get notifications of transactions, but he has the option of a different card or cash, so could make the purchase without my knowledge very easily. I think he does it on my card as he likes being "caught" though 😁.

We discuss large purchases like appliances, cars etc, but otherwise trust each to spend within our means. Large purchases that might use finance or the need to borrow on a 0% card is managed by me, as DH trusts me to do this, but I would update DH every so often (every 6-9 months perhaps), so he has a general idea.

One reads on here quite frequently that OP's partner has secret debt, which remains hidden and gets out of control, and that can cause the end of the relationship. I'm glad my DH and I have full transparency, and I appreciate it all the more after being in a previous relationship that did not.

We buy everything on our credit card , food , fuel , cafe visits , treats , amazon deliveries , clothes etc , on average comes to 2k a month . It is paid off in full , we do it as it's convenient .

Same but for Virgin.

Although we are looking to switch since they changed their bloody rewards scheme and massively increased the points for reward flights 🙄

Are you happy with your avios? BA seem to go to more of the places we want to go anyway.

I have a 20 month 0% card and I put all my insurance on it (house, car, horse, horsebox!) And pay it all off monthly over the year. It costs me nothing and helps my credit rating. I also use it to book holiday stuff and sometimes pay off that month and sometimes over a couple. There are lots of ways to use credit, some sensible and some daft. I'm happy with mine, but others wouldn't be.

I absolutely do. Interest would fuck me up.

I assume the poster means the Tesco credit card, it used to be really generous with the points but they cut it back in recent years. I now prefer to use a cashback debit card for food shopping

If I can't afford to pay the bill at the end of the month, I wouldn't be making the purchase, unless it was essential.

Only time I don't pay in full is if i have made a purchase on interest free credit, anf it us paid off a month in advance

You can generally keep a balance of 1k and never get charged any interest. But that of course depends on how much you're spending each month.

I do

I do, I like the convenience of a credit/ debit card but am not going to fork out paying interest for that convenience.

We do

I do - after bills my money is shifted to savings. Then pay for everything during the month on cc before paying off on payday

That completely depends on the card. I get charged interest on whatever is on there. Even £5 or less (obviously wouldn’t have that on there but just hypothetically).

Yes, I always have. Didn't have credit cards until I was in a position to know I can clear them monthly. Apart from a mortgage, I've never borrowed anything.

Always pay in full. All our spending goes on the cards

I’m generally happy but they have put up the annual spend to £15k per year (it was previously £10k) and increased the yearly fee. That said we have just got four return business class flights to the US in the summer hols for £3500. That was using a combination of Avios points and two companion vouchers.