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?

If you don’t pay it off, then every item you’ve bought cost more than you think.

Significantly more.

Do a month where you don’t buy anything that you can manage without. Run down the freezer, do without things, even if it hurts a bit. See how many things you can ‘not buy’ for a change. Just a month.
That will bring the amount on your credit card down a bit, and you need to repeat that every other month until it’s clear.

When I was married we ran up a lot of debt on a credit card in my name.. it took a long time to pay off and was a very expensive mistake. If I had one now, I would only use it for purchases where I needed the additional protection, otherwise I stick to my debit card and only spend what I have.

if I wouldn’t be able to clear the balance I wouldn’t buy it

obviously there is a limit - when absolute essentials are more than income - but that’s up shit creek - debt spiral

I use a credit card to make purchases for the additional protection that purchasing with a credit card gives, and I pay off entirely each month. I took a credit card out at 18 to build up my credit score so would put all my fuel costs on to the card and pay off each month.

I think some people see credit cards and overdrafts as free money but if I cannot afford it, I do not buy it.

If I want something I ask do I need it? If I need it and I can afford it, I will buy it. If I don’t need it but I really want it, I ask myself, can I afford this 3x? If I can, I will buy it. This has always made me evaluate whether I can truly afford it or whether I’m just ignoring the fact I can’t because I could scrape together to get it if I really had to. That isn’t something I want to do for something I simply want.

I am more strict than most friends and family but it has really worked in my favour in life so far!

Always pay off in full, even when I was younger and had to then put more on, it was always drilled into me to pay it off in full otherwise you're paying more for every item you put on it.

I use the credit card just as a payment method, not because I don't have the cash in another bank account

We do, if we wouldn’t be able to pay it off we wouldn’t buy the stuff.

Yep sorry to say I'm another who does this. Never let myself build a debt as feared it would be a slippery slope and I HATED living in overdraft as a student

equifax says half the population don’t pay it off each month - which is what I might have guessed - but my guess wasn’t based on COL but on attitudes to money and spending- sone people live to spend and others are naturally cautious

Not at all. I’m freelance so my job situation is either feast or famine. When I’m between jobs, I have to use the credit card for several months and suck up the £10-20 interest each month.
Then when working I can pay it off swiftly in 1 or 2 months. (£1.5k max)
Not ideal but there we have it. It is useful to have.

This is true. I think that's a more significant stat than not paying it off every month, as some people keep the balance on there for the whole of the 0% interest period and have the money in an interest earning account instead.

Though personally that's too much work for me and I pay off once a week. It's mostly food shops really. I thought if I were paying hundreds a month for something, might as well get some points on it.

Never do. Never have. We always have 0% interest cards and use them for bigger purchases. Then we chuck lump sums at the card until it’s either clear or we transfer to another 0% card.
we could clear the balance if we have to but our savings are earning more than the debt costs so we leave it as it is.

Me too. I could clear the credit card debt with savings if I wanted to, but given my savings are earning interest and the credit card is on 0% it's financially far more sensible to let the savings earn interest and then pay it off before the end of the 0% term.

You get a holier-than-thou moralistic attitude on a lot of these threads where people seem to think it's "better" to always live debt-free. And clearly if you're paying interest in that debt, it is.
But if you're organised; and meticulous at moving things around on time, credit cards can be very useful for big purchases. You get the extra protection of paying on a credit card while also being able to hang on to savings for longer and benefit from the compound interest.

I have one for emergencies, but can’t remember the last time I actually used it. If I did, it would be paid off immediately.

We normally do. About 13 years ago we had to put over 10K of medical bills on it, and that took years to pay off. Once, just to torture myself, I worked out all the interest we paid - ouch. Would have been better off with a personal loan.

Yes I do. I don’t buy anything I can’t afford, and I’m fortunate enough that I can afford everything I would need along with some things I want. And fortunate enough to have savings that would cover most emergencies that might go on a credit card, and holidays etc.

I didn't used to and got in a right mess so now I only use them if I can pay it off in full.
The only one I have now is an extra one on DH's and its paid in full every month. We only have it to get points really and to give DD an emergency card for Uni

I have never had a credit card. I’m mid 40s now. Absolutely no desire. 🤷🏻‍♀️

Yes. I absolutely resent paying interest and debt makes me anxious.

I made the mistake of getting store cards - remember those? - in my early 20s when I started working ft & did loads of clothes shopping. When I realised just how much interest I was paying I knocked it on the head.

I have one that I pay off every month and another that I don't use but it has a few grand on. I am paying that one off gradually before the 0% balance transfer offer runs out!

The only time I haven't is when I've had really good balance transfer or interest free purchase offers for X months and then I've put the money into a high interest account and paid off in full at the end of the term.

Loving the difference between what people are saying here and what’s actually fact across the country !

Always pay off In full but pay for as much as we can each month on the card to maximise airline points. This way we get at least 2 virtually free upper class flights to New York every year!

If I couldn’t afford to pay it off, I would cut it up.

Always

I have a credit card but rarely use it. I use it if I have two big bills due in the same pay month - say car tax and then a repair bill - I’ll put one on the credit card so it gives me more time to pay. I then pay it off as soon as it’s due the next month. I was always taught that a credit card is only for that sort of thing and it should always be paid off as early as possible.
Using it for anything else is a bit of a slippery slope into debt imo.

Pay it off every month automatically. It’s an Avios one so the interest cos is high as the purpose of having it is to accumulate points, not to use for long term credit. We have a high disposable income and all expenditure that isn’t bills goes on there so it’s typically £3-5k every month. Only recently got it and due to the month or two credit before you pay it off we saved quite a lot immediately just from the timing difference.