Poll: How many of your non-essential purchases are bought on credit?

[Angilion]

Nothing. I learned my lesson the hard way - getting into debt and being kept in debt by financial businesses having a policy of doing so because it's more profitable to them. The ideal for them is to have as many people as possible living constantly with barely serviceable debt. Not all of them have that policy, but it takes a lot for a business to go against what's most profitable for it.

When I dug my way out of that hole (doing so was extremely unpleasant and harmful to my health and took me over 4 years despite one of my creditors being very nice about the situation and waiving all remaining interest), I changed my attitudes. For a while now the only thing I have had on credit is my house. If I want something, I save up for it and then buy it. Or I don't buy it. I've been surprised how much easier budgeting has become since I stopped buying non-essential purchases on credit. I'm in a fortunate position due to being able to buy a house almost 25 years ago, but that was also true when I was in debt.

I'm aware that it's slightly better to buy everything on credit card and always pay it off in full each month to avoid interest, but I'm also aware that it would be a risk for me to do that. All it takes is not correctly budgeting for 1 month and I'd be heading down into worsening debt again. It's a good plan if you're rich enough and disciplined enough, but I'm not rich enough and possibly not disciplined enough.

Hmm...technically my insurance is on credit as I pay it monthly. But that's an essential purchase and I just consider the interest part of the cost anyway. I could pay it yearly in advance. I would save a bit of money by doing so. But not enough to get around to doing it that way.

 

[NotAGolf]

I buy most things up front. I'd use buy now pay later more often if savings rates were better, but as they're so pitiful (unless you're willing to risk it), then it doesn't really make sense at the moment imo.

 

[Throrik]

Well, if that wasn't a flag then I don't know what is

Quite common to pay for things over the phone when this happened, hence why you use credit cards rather than a debit card. It was driving lessons back when I was a wee whippersnapper and I wanted to buy bulk

 

[dlockers]

Hmm...technically my insurance is on credit as I pay it monthly. But that's an essential purchase and I just consider the interest part of the cost anyway. I could pay it yearly in advance. I would save a bit of money by doing so. But not enough to get around to doing it that way.

You and @Rroff need your head banging together.

What could you possibly mean by "not enough [saving] to get around to doing it that way.?"

I almost absolutely guarantee you aren't earning enough to voluntarily donate your cash to a financial services institute.

 

[200sols]

For those on PCP, make sure you take the red pill when your settlement comes. Don't let shiny shiny new car distract you from bank loaning and paying off the GFV.

PCP one of the most acceptable yet ridiculous debt cycles I've ever been stuck in.

It is madness, not only the loan but the interest rate. People are paying £5/6/7k in interest over 3 years on poverty spec Audi/BMW just for the badge.

 

[Angilion]

You and @Rroff need your head banging together.

What could you possibly mean by "not enough [saving] to get around to doing it that way.?"

I almost absolutely guarantee you aren't earning enough to voluntarily donate your cash to a financial services institute.

Yet here I am, doing OK. So it seems I am earning enough to donate less than £1 a week. Yes, it's a waste. No, I don't care enough to do anything about it. It's a trivial amount of money.

 

[Von Luck]

Same as others, pay for everything using CC in order to get cashback and the purchase protection, but it's always paid off in full each month.

In terms of actual debt, have a mortgage and lease one of our cars (not PCP - lease hire).

 

[200sols]

Yet here I am, doing OK. So it seems I am earning enough to donate less than £1 a week. Yes, it's a waste. No, I don't care enough to do anything about it. It's a trivial amount of money.

How much is it? £20 or £50 a year? I'd rather use it as toilet paper than donate it to an insurance firm.

 

[dlockers]

Yet here I am, doing OK. So it seems I am earning enough to donate less than £1 a week. Yes, it's a waste. No, I don't care enough to do anything about it. It's a trivial amount of money.

Seems despite your sob story you haven't learnt a single lesson. More fool you.

 

[Rroff]

How much is it? £20 or £50 a year? I'd rather use it as toilet paper than donate it to an insurance firm.

Think mine are around £30-35 - vs the convenience factor I'm not too bothered about it.

 

[Angilion]

Seems despite your sob story you haven't learnt a single lesson. More fool you.

Do you really not understand the vast difference between wasting a completely trivial amount of money (not even enough to buy one nice sandwich per month) and having an unservicable level of debt?

 

[Angilion]

How much is it? £20 or £50 a year? I'd rather use it as toilet paper than donate it to an insurance firm.

I'm not sure. I glanced at it and decided it wasn't enough to care about. About £30 a year, I think. Less than £40, definitely. Maybe less than £30.

Many people waste more money than that on toilet paper, so your comparison is appropriate.

 

[b0rn2sk8]

Isn’t the point that if you don’t chuck away £30 here and £59 there, you have that money to waste on toilet paper, PC games and and RGB lights?

 

[200sols]

Think mine are around £30-35 - vs the convenience factor I'm not too bothered about it.

There is no convenience though, when you signup you choose to pay monthly or lump sum, they both take the same time.

 

[Rroff]

There is no convenience though, when you signup you choose to pay monthly or lump sum, they both take the same time.

It is about managing (or not managing) my money as a whole not just the act of paying for car insurance. I'm comfortably enough off I don't need to worry about it too much but not so comfortably off I can forget about the possibility of several large amounts going out in one month and one way or another I seem to end up with bills due around the same time of year.

 

[dlockers]

Do you really not understand the vast difference between wasting a completely trivial amount of money (not even enough to buy one nice sandwich per month) and having an unservicable level of debt?

It is about managing (or not managing) my money as a whole not just the act of paying for car insurance. I'm comfortably enough off I don't need to worry about it too much but not so comfortably off I can forget about the possibility of several large amounts going out in one month and one way or another I seem to end up with bills due around the same time of year.

Y'all need to learn the value of money.

 

[A2Z]

For years I kept spending and spending on my credit cards, like a boss. Mostly holidays, been all over the world. 9 months ago I calculated how much I owed in total, and it was £21.5k . Total credit available about £30k. I started thinking about the future regarding marriage/mortgage etc and realised I needed to get my debt down and started lowering it instead of increasing it every month. Today it is £10k. This is with about £5k spent on a 3 month holiday and wedding over the Summer though. Could clear it all within a few months but have a few more trips abroad planned. It's all currently on interest free deals so can wait a bit to clear it.

When I get to £0 then I will be paying everything off every month going forward, for good

 

[Von Luck]

While I can understand people not wanting to get into debt, I don't understand people who don't use a credit card at all when the cashback cards basically give you free money and you never get charged interest if you have it setup to pay off in full each month. Always nice when you get a couple of hundred quid of free money arrive on your cashback anniversary

 

[b0rn2sk8]

It’s not like those of us who use reward cards manually pay the CC bill each month.

All my cards are set to take the statement balance via direct debit at the end of the billing period.

No discipline is required as it all just gets paid automatically, I’d have to go in and change that for something different to happen.

 

[HangTime]

On the topic of paying insurance monthly just give up guys, I had this debate with Rroff and Misschief(?) in another thread a few months back, they won't listen to reason and logic, it's best to just let them get on with wasting their money rather than waste your energy trying to persuade them and debunking all their arguments to the contrary.