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?

There would be no point for me to have a credit card if I had to repay it in full every month. I use it so I can spread the cost of things. That's it.

I do, but I know I'm lucky to be in that position. When I got my very first credit card (many years ago), I quickly spent it to the max, paying the minimum every month. The debt grew horrifyingly quickly. I was lucky that my father came into some money, and generously gave some of it to me and my brothers. After a lot of internal debate I decided to use it to pay off my credit card debt, and swore I would never get myself into that kind of debt position again. I've been fortunate since to earn enough money to keep that promise to myself. I sympathise with anyone who has got themselves into card debt without the stroke of luck that I had.

I do, but I only use it for purchase protection and to keep my credit rating high. Obviously for people who rely on a credit card in order to be able to afford stuff they're less likely to.

We do.

I've had one for 40 years and never paid interest. I get John Lewis vouchers with mine. I put everything on it ...rarely use my debit card.

Credit card protection against the supplier going bankrupt or providing faulty goods.

Rewards scheme points.

Up to a month and half interest free credit where your money could be earning interest.

That's three good reasons why people use them but still pay off in full.

We do. 🤷‍♀️

Always have

I don't have a credit card, I'm too poor to get into that fools game better to save where you can then use that when needed than to borrow. I have been literally homeless and flat broke and never put myself actively in debt, especially debt I knew I couldn't or planned not to pay off and just build fees on. Utterly stupid, and how people end up in situations they can never dig themselves out of.

Most people I know with credit cards use them as temporary bridges between pay days (end of the month when they're a little low) then pay it off on pay day or simply got one too boost credit scores and pay it straight away, not as a way to live above their means and jump debt to debt.

I have a max 3 month rule. Very occasionally I’ll use it for something I can’t afford in one go. But if it takes more than 3 months to pay it off I won’t buy it. I’d rather save up. Mostly, I use my cc for work expenses that I have to claim back.

I do. I just use is instead of debit card to build up air miles and also so that everything goes out on payday.

You'd be better off getting a loan or using klarna if you need to use it for borrowing op

@museumum you could avoid paying interest if you time your purchases correctly.

One just before and one just after the statement cut off date and you effectively spread over two months anyway.

I always pay mine off in full but sometimes the time delay in being billed can be useful to avoid taking money from savings.

I always use a credit card online. Extra protection plus if someone does use if fraudulently you are effectively dealing with pretend numbers until it's sorted where as someone emptying my bank account would have the knock on of things bouncing etc.

Yes things like that are a great idea.
Small, manageable sums, that you can pay off easily. Soon builds the credit score.

Well, that's not my main reason in my specific situation but yes, those as well.

Always have. It's used for everything we spend and the full amount goes out via DD every month.

Always pay it off in full now. Previously had big debts which spiralled and took years to pay off. Never again.

We’ve always paid it off each month. We do it for buyer protection, the airmiles, the John Lewis vouchers etc depending on which card we use. Have never used it as a ‘credit’ card as such, bet the companies hate people like us as they’re not making any interest off us!

I have 2. One we live on and gets paid in full every month. The second is a zero interest card which my DS18 is an additional card holder on. He goes to uni abroad and uses it for fees and flights. I pay this off in large chunks every month. I usually clear it by the time the next set of fees are due. I’ll change cards when the 24 months interest free are up. I’m happy to use credit if I’m not paying interest. Certainly cheaper than a loan.

we always clear the balance each month

We always have done, for over 25 years. By direct debit, for the full amount.
We use them for the protection, insurance, and Avios points through AmEx. And more recently, access to airport lounges across Europe (with free food and drink) and priority through security in some airports.

They make money by charging fees on all the payments you make to companies. Interest isn’t the only way they make their money.

We always do fortunately.

Same here. Got a consolidating loan at a much better rate than the CC rate and paid it off over 3 years. Before kids we had time to shop around for 0% deals and used to use those too but don’t have the time or energy for it now.
Now we just use it to get the free flights and scrupulously pay off in full every month.

Of course I pay it off every month, and I assume most people do. Everyone I know who uses a credit card does so for the perks they bring, not because they can’t afford what they’re buying.