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?

Oh- and to the people who ask why the OP didn't just google- well that can be said of anything tbh. I am finding ti interesting to read RL experiences of how people use theirs every day - from those who use it as a tool to those who use it to cover income shortfalls.

I usually do. But I'm carrying a 4 figure balance currently at 0%. Invested it and doubled my money, so it was smarter than clearing the balance in full.

A lot of them give you SOME kind of rewards 'points' and you can save them up until you want to spend them.

In my earlier post, the one I use all the time for ALL payments every month, is anywhere that accepts credit card payments So all groceries, even little shops for a few bits and pieces, fuel, Amazon purchases, other online payments, meals out, drinks hotels etc. etc. My default payment on Pay Pal, eBay. Literally anywhere and everywhere I can do so. It does mount up and by Christmas I usually have the equivalent of about £150 worth of points/vouchers to put towards Christmas Expenses.

I use a credit card for every purchase and have for many years. It automatically takes the full balance each month. There's more protection - I'd never consider purchasing anything significant on anything other than a CC. It can also help with cash flow issues.

A friend was surprised to learn this, and I was surprised to learn she has never had a credit card. Her reasoning was that she doesn't believe in buying things she can't afford. Just because it's a credit card doesn't mean you have to treat it like the never never.

I pay it off every month. Why pay more for your purchases by accruing interest?

Yup. I put all purchases through my credit card and pay it off in full every month.

They average over 20% interest - if you need to borrow money, it's a really ineffective and expensive way of doing it, much better to get a proper loan if needed, or a hire purchase agreement - many cheaper ways to get credit.

I do these days but historically did not.

I always do

I do, but presumably there must be some mugs out there who don't because banks don't make any money from people who are careful with their finances.

Exactly the same as me.

I don’t really used a credit card for monthly spending but the only other time I use a credit card is when I’m buying something big and use a 0% card for 18 months or something like that. I’d rather keep my money in the bank earning interest and then I’ll pay the credit card off later at the end of the 0% period.

I don’t actually have a credit card and don’t want one for a few reasons

Now that is something that had never occurred to me, I have to say. I will definitely keep this in mind going forwards.

I take advantage of 0% deals for large purchases (not that I make many) as it means I don't have to dip into my savings account and lose my bonus interest. It's effectively the same as saving up for it, except I make money in the process and you don't have to wait 12-18 months to make the purchase. It's only a good option if you've got savings or some kind of fall back though, more risky if you're living from month to month.

Yes. We don't spend what we haven't got. We use the card for payment but not for credit, as such.

Always.

Always pay it off every month. Why would I want to pay interest? If you can't afford something, don't buy it.

I always pay it off in full but pretty much only use it to book holidays and little bits here and there. I wouldn't buy something on it if I couldn't afford to pay it off though.

Rarely use one as I hate debt, but pay it off ASAP if I do. And, just because temptations there, doesn't mean you have to give in to it. Much better to save and then buy what you want.

I do and always have. It's just a means of payment for me, it avoids lots of transactions on my bank account and I get Clubcard points which I use to get full RAC membership each year. I use the cards for my benefit.

I don't get into debt, I don't buy what I can't afford. If I couldn't control my spending, I would get rid of it. It's only a slippery slope to debt if you can't control it and buy stuff that you can't afford. I have seen people go bankrupt with credit card debt because it bought them a lifestyle that they couldn't afford.

I use it for day to day spending on groceries, diesel, literally everything I buy online. I have an Amazon one that I use for my business, and that pays cashback and I get anything from £2 to £5 a month depending on my spending.

I have a DD set to take payment in full each month.

I have used a 0% card in the past to buy a car, and paid that off monthly rather than taking out a loan and paying interest. (The fee was much less than interest would have been).

Sure. Also 0% balance transfers. There are definitely ways to play it.

But the OP seemed to be talking about standard month to month spending and not paying that off in full each month.

We have two credit cards. Both pay us money or points to use them so they are our go-to method of payment and yes they get paid off each month.

For some people credit cards are the thing they use in emergency, for others they wouldn’t touch them and for the rest they are used for cash back and of course you have more protection with purchases if they go wrong.

Yes we do similar.
We put most of our spending on the credit card and pay it all off each month - we do it for the points/miles. We use the points to upgrade our flights. We visit lots of friends/family in long haul places and always fly Virgin Upper Class - the points means that we pay roughly economy prices… no way can we afford to do that without the points!

We don’t, but would like to. Everything is 0% and we’re paying down a big chunk every month, but we were previously in the ‘overspent’ category and are now paying for it. We’re tracking to be completely debt free in 18months so I’m not too concerned.

We did when we used it for everything. Then we got a new joint account which rewards you for spending over a certain amount each month so now we just use the debit card and leave the credit card for emergencies