To think always clearing a credit card is not typical?

[OneNattyCrab]

I tend to pay my credit card off in full each month so I never pay interest but it’s made me wonder how common that actually is. Given how many people carry credit card balances, it feels like always clearing it might not be the norm.

AIBU?

Iv only ever had interest free credit cards so I have never paid any interest. I don’t let my limit go over what I have in savings. The credit card is always cleared before the interest free offer finishes

Cleared in full every month. The only time it wasn’t was because I mistyped in the amount to pay in my banking app. I did get the interest charges waived and they were eye watering. I’m a lot more careful now!

We always pay it off in full every month, if we couldn’t afford to pay them off we wouldn’t use them. We use it to get the additional cover on big purchases.

YABU - when I worked in a bank for 15 years, over half our customers cleared their balances every month.

Those who paid the minimum were comparatively rare; I'd estimate less than 10% of card holders.

It’s not always possible to pay off credit card every month, and not always possible to avoid spending on it.

It's called stoozing, I have done it a couple of times but not huge amounts.

We pay ours off every month over here. We put everything on it to get the points, but have set up a regular payment from our wages into another account to pay it off.

By contrast, my bestie is up to her eyeballs in debt, she told me a few years ago that she was in for £21,000, and from the outside looking in, I don’t think she’s slowed up on the spending 😬 She pays off the minimum amount each month with full knowledge that by doing this she’ll never be free of the debt.

If everyone cleared their balance at the end of the month then credit cards would not exist as it would cost banks to run them. Somebody needs to be paying interest to make them work.

Reckon there's two main ways people use credit cards in their day to day (as opposed to for specific high value items/holidays/renovations etc):

• have enough income to be comfortable, use it for everything for the extra protections, pay off in full every month;

• struggling, use it to cover unaffordable expenses, can't afford to clear it each month, tends to rise over time.

And if you make use of 0% interest cards and are disciplined about it, it's a nice bit off interest free loan you can use and get interest on the money for yourself, without any costs.

Cleared very month

I clear mine monthly. I only have a CC for purchase security, and ease of use abroad (car hire) and now I put regular spending on it as I earn cash back so that’s money for nothing. The only other credit I have is mobile phone contract so my credit card score is excellent should I ever need it.

Well, obviously but the question is about how many people do pay if off in full every month, I'm sure I've heard Martin Lewis talking about this and more people pay off than don't I think

Yes that’s what he calls it! He is mad into it but I just wouldn’t have the patience for it, We nearly got badly burnt with it years ago as had interest free credit card money in that Icelandic bank that went under🙈 I think we took about 20k out a month before the bank folded.

it’s rare I don’t clear mine.

You use it for convenience, and you delay paying for things for a while until the bill is due. If you need to borrow money it's a very expensive way to do it. And what do you do once they are maxed out if you can't afford to pay?

No I don’t clear mine. But it’s interest free.

I clear it in full. I use it because of the protections it offers and to earn John Lewis vouchers. I always have the funds available to clear it and have never been charged interest.

One I clear every month. The other has no interest for 2 years so that one has a larger balance that I'm clearing in small payments. I'm essentially using it as an IFC option for a large item of furniture.

Roughly half of people do that, so yeah it's typical. However that still leaves shitloads of people who don't. Which is going to cover the full spectrum from sometimes needs 2 months to pay off big purchases but otherwise fine to being in real trouble.

I use my credit card for everything as there is a transaction charge on my current account. It is paid off each month.

Not cleared monthly but when I use it I don’t use it again until it’s cleared.

Fair enough if you have a big bill to pay and then clear it over a few months.

I have a direct debit that pays off the full amount every month so I can't forget to pay!

Of the people I know who would talk to me about their finances, I don't know anyone who would dream of carrying credit card debt. Everyone who has a CC clears it monthly.

Clear it every month - same for husband.

Clear it every month and always have done. I don't like being in debt so don't use it to live beyond my means.