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 do. I use an M&S credit card for the rewards but I pay it off in full every month.
They don't make much money from me.

Never borrow on a credit card. I only use for points and paid in full by DD each month

I have a cash-back credit card which I use to pay for almost everything I buy. I pay it off in full every month without fail, which means it actually earns me money instead of costing me interest payments.

Obviously, this might not work for everyone. It works for me because I’m quite careful with money, disciplined about proper budgeting & living within my means.

Yes, always pay in full. That probably more to do with having crippling credit card debt in the past and learning a harsh lesson.

I pay mine off. We use it for everything, and I have a standing order to pay the minimum then on pay day I log in and pay it all off. I get a load of club card vouchers doing this so saves me money.

I will get so much hate for this but everyone is a big smug ‘I have no desire for one’ ‘I live frugally’ - well no one wants one, people that are skint live frugally!
It’s REALLY tough times for the majority of people. People that work hard and didn’t spend on champagne and caviar, they need credit cards for food and emergencies.

I have a horror of debt, so I would go without rather than put something on my credit card that I knew I couldn't pay off at the end of the month, or had a tangible plan to pay off fairly quickly.

If you're regularly using credit cards to pay for every day essentials and can't afford to pay it off when the bill comes, then you are overspending and need to seriously downscale your lifestyle.

I don’t but I always have a 0% card. I put things on it that I can’t afford out of my salary that month and then spread the cost. I have the money in savings to cover but I just don’t like touching them. It’s always paid off before the 0% ends

I always do. Have the BA American Express to earn avios points. Really adds up.

We do. Anything I buy on line I use credit card for but we are careful that we only buy what we can afford and don't use the card as a source of credit.
I do appreciate that we are lucky enough to be able to do this and not everyone can.

Statistics show that 65% of people pay off in full every month. And many of the remaining 35% will intentionally not be paying it off if they're in the 0% interest period. Only a minority of users are incurring interest on a regular basis.

If you can't pay off in full and aren't in a 0% period, then it makes more sense to take out a bank loan which will be a much lower rate of interest, unless it's just a short term thing, and they can pay off the credit card in full within a few months.

Most people seem to use credit cards for the buyer protection, i.e. pay a deposit for a new car on credit card and pay the rest by loan or savings, etc., same with online purchases, etc., or to benefit from the 0% periods whilst they save the equivalent money earning interest in a savings account.

I do. But that’s because I save for annual expenses throughout the year so most ‘big’ expenses I have the money in savings to put on it anyway.

some other things I may take out my general savings pot and pay back over a couple of months.

but I always always pay it in full.

They make money on every single transaction.

I don’t. I have two credit cards with about £3.5k on each that I use for large purchases / holidays and I chop away at them every month, paying well over the minimum payment and then I swap them onto a 0% deal every time the current deal ends. I don’t ever worry about them really. I mainly use them to book a holiday every year and then by the time the time comes to book another one I’ve paid all / most of it off.

I think a lot of it depends on your overall situation really. I’d never get myself into so much debt I couldn’t afford to pay it back. We own our home outright and don’t have many outgoings so for it is it’s just a small monthly bill really.

Actually if you are really skint then you are unlikely to be able to GET a credit card

I do live very frugally ( especially by MN standards) but the money I would've used from my income to pay bills etc I put in an instant access savings account, pay the stuff using the card then pay the money off card at the end of the month. So paying no interest, gaining a tiny amount as money sat in savings account a month and get avois points and occasionally a companion voucher.

I don’t know anybody who doesn’t.

Most of my friends channel all their discretionary spending via cards for points/cashback

I do.
I check my balance regularly so I know what is owing, etc
And diary it in, (no paper statements these days, just an email), so I pay before any interest accrues.

I have always cleared mine in full.

It depends, usually I put all my spending on my credit card, then clear it at the end of the month. In fact I just paid off my credit card this morning.

But I have also used credit cards to buy something expensive, or pay for a holiday, and then paid it off gradually over three or four months.

I have strong memories of my father cutting up his credit cards and telling me they were essentially the work of the devil (shortly before we lost our house...) 😞

Unsurprisingly, I always pay mine off each month (I only have one to keep a good credit score).

I have about 3k on one but it’s interest free for 18 months - I pay 200 a month off on it so it be gone in less than a year.

i have the debt because I chose to go on a month long holiday during maternity leave and we didn’t have the funds to pay in full at the time - but the knew id not really have the luxury of a month off again to travel like that so I was as happy to overspend on that occasion!

We've paid off in full every month for the past 32 years.

Standing order with my bank, paid in full every month.

I don’t. I’ve used mine to buy
my second hand cars £4k and pay for the servicing MoT and repair. Also got my fridge, flooring and expenses when I need to see my parents.
Its 0% as I swop them over once the 12/18 month deal expires. I do have to pay a fee when I swap them round but it’s less than interest.

I do clear it monthly, but it is becoming more difficult to do so with COL. I am now having to really budget and pay attention. Gone are the days when I could just take the Dcs out for a hot chocolate on a whim a couple of times a month.