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 the same. Charge everything for points.

I do - if I use it. I only use a credit card for things like plane tickets, so I get the protection the card offers.
Other members of family pay off each month - interest rates on credit cards are very high, it's stupid to pay interest when you have the money to settle the bill (poor economic understanding, even!).

We do. Always have. Like pp we have Amex for the Avios points.

We pay ours off every month.

Used Amex for years. Now accepted very widely. Just a few smaller places and smaller on line that won’t.

ive reduced Amex now as switched banks back to Santander and their rewards give me just as much for most of my spends. Just makes my financial accounts easier to have under main debit than to have to check a whole load of Amex spends too. But that’s just an admin advantage. I still use asap where making bigger purchases I want payment protection for.

lot to be said for Amex still. Particualrly for first 6 months if you e got big spends coming up like moving house, doing renovations etc etc.

I also have a master card, for payment protection only when Amex can’t be used. Keep my bases covered

We always pay ours off every month. We use the credit cards for monthly spending and then clear it as soon as we get paid. I can't remember the last time I paid with a debit card. We just make sure we don't overspend and we get points for using the cards

Yep, that’s why I sent above link. 62% actually, so slightly higher than you say

but yep, I agree, why the hell would op not just google- took me 2 mins to find article and scan to find stat.
🙄🤷‍♀️

I went to San Francisco for 12 days in January and my accrued points & credit card perks paid for two BA first class round trip tickets.

to me, not using credit cards for points accumulation is throwing money out the window.

Pay mine in full, goes out by DD every month.

You must be a very high spender to accrue so many points in the first place.

Always.

they're only a 'slippery slope to debt' if you let them! They're not some pernicious influence!

If you're in a situation (either through personality or personal circumstances) where you're likely to get into debt you can do so with or without a credit card. If you're sensible/frugal with money and in stable circumstances you'll be okay with or without a credit card.

It's the person not the plastic that incurs debt.

if you're financially solvent they can actually make you money by "stoozing."

i.e. you spend, say £10,000 on something. If you already have that £10k available, you could buy the item straight off and it would cost you £10k, no more, no less.
If you put that £10k in a high interest savings account paying 5%, and bought the item on a long term 0% card then at the end of two years you'd pay off the £10k but you'd have earned £1025 in interest (assuming you reinvested the 1st year's interest), so you'd actually only spend £8975.

And that's before you even take into account points, cashback and other incentives.

Obviously everyone makes their own decisions and risk assessment based on their personal circumstances, but if the only reason you're essentially throwing away free money is because you're scared you can't trust yourself, that's a bit silly.

I didn’t know that credit cards gave points! That said presumably you must have spent a lot? I dont have a lot of disposable income, I certainly couldn’t afford to go to San Francisco (last holiday was over 5 years ago) so I’m not sure I would be earning that many points. Can you use a credit card for normal spending like mortgage, bills, petrol and Aldi shops or are they only really for big purchases?

We pay ours in full every month. Not to do so just means money is being wasted every month on paying the Mortgage. DD is for the full amount every month (however much that is). I put everything possible during the month on one credit card I hold, to get the rewards that come with it.

Very occasionally over the years, to cover unexpected purchase/emergency, in the shorter term, I have either availed myself of a 0% offer from one particular one of my credit cards, which I keep for that purpose. Offers occur fairly regularly on that one. Or I have opened a new 0% credit card and transferred a balance - but always paid it off before the 0% deal ended. Always cheaper than taking a loan and I have reasonable credit limits too

I do, and always have. I’m in my 50s and it’s how we were bought up to use credit cards.

We pay it off every month. Many years ago I accidentally missed paying it off one month and my DH has never let me forget it.

I don’t have any debt and never had but I wouldn’t say I’m sensible/ frugal, I have ADHD tend to spend what I have and clear my bank account each month but I don’t often go into my overdraft. A £10,000 purchase would be unaffordable for me though! I don’t have much disposable income and certainly not enough to be investing money. Sounds like credit cards are for a different kind of high earner?

Really?

Tesco, M and S, Co Op, Sainsburys, Train fares.

To be honest, it’s quite unusual to find somewhere that doesn’t accept it.

Of course. That’s what we do every month. Use it for Sainsbury’s, Next, petrol, kids clothes, tickets, lunches out etc and then pay it off every month.

I use my credit card for everything. Its the only card I use. And always pay it off by direct debit each month. I do it for the points and the simplicity.

Depends. Usually I only have a couple of hundred on it, so pay it off monthly. Other times I use it because we need to make a big purchase and make use of the 0% interest in which case I may pay it off over 3 or 4 months.

I do know, every time I pay off in full my credit rating drops a bit and then goes back up when I use a bit of credit.

Do you have to remember to pay it off or does it happen automatically? I have adhd so I’d be worried I’d forget to pay it off and end up paying loads of interest.

Always

Thanks to this thread I have had a look at what my current credit card offers and have just swapped it to a different sort (same bank) which will hopefully give me some perks as well.

Useful thread op thanks!

Always. If I wanted something I knew I couldn't pay for, I would either sell something else to cover it or not have it.

Having the card with all it's benefits and it being there in an emergency is the main reason I use it.

No a chance would I go into debt for Christmas or a holiday.