# My credit cards, a second income. **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [November 26, 2008, 6:08pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579 "2008-11-26T18:08:00Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [November 26, 2008, 6:08pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/1 "2008-11-26T18:08:00Z")
This morning I had an epiphany (more a revalation, I guess). When paying for something I pull out the wadf of cash in my pocket. If that’s not enough, I pull out my wallet. If there’s still not enough, there’s my trusty Master card. Nowhere in this process do I think about whether I can actually _afford_ what I’m buying. And “need” is not even a consideration. And I usually use credit, not debit. So, I’m effectively using my credit as income. Give it some thought. Anybody else admit to doing the same? Peace, mangeorge ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [November 26, 2008, 6:27pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/2 "2008-11-26T18:27:56Z")
Since I found [Dave Ramsey](http://www.daveramsey.com)I haven’t used credit cards in 18 months. I don’t plan to again. It’s not really a second income, since you have to pay it back. It’s not free money. ---
**Author:** ![control-z](https://avatars.discourse-cdn.com/v4/letter/c/eada6e/32.png) [@control-z](https://boards.straightdope.com/u/control-z)\ **Post date:** [November 26, 2008, 6:28pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/3 "2008-11-26T18:28:39Z")
Oh yeah, been there, done that. If you can’t pay your credit card balance in full each month, you gotta stop using the card until it’s paid off. Then repeat. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [November 26, 2008, 6:31pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/4 "2008-11-26T18:31:58Z")
> [@ivylass](#): > Oh, I know that. I’m just sayin’. 🙂 ---
**Author:** ![Palo\_Verde](https://avatars.discourse-cdn.com/v4/letter/p/65b543/32.png) [@Palo\_Verde](https://boards.straightdope.com/u/Palo_Verde)\ **Post date:** [November 26, 2008, 6:34pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/5 "2008-11-26T18:34:40Z")
The way I got my spending under control was to only bring cash, no other payment methods. So if I was going to the grocery store and could afford $40 in groceries, I took only $40 in cash with me, nothing else. It meant I had to pay close attention to what things cost. I had to do some real adding. And if, when I got to the checker, it was over my $40, I had to put something back. It was a huge pain. And I had to do it for about 6 months before I got the hang of it. But now I decide ahead of time how much I can spend at Home Depot or Target, and I don’t go over it. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [November 26, 2008, 6:35pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/6 "2008-11-26T18:35:56Z")
I’m thinking that that’s how some people get into trouble. It _does_ seem free, doesn’t it? I mean, the minimum payment is so low! And if you reach your limit they give you _MORE_. 🆒 ---
**Author:** ![control-z](https://avatars.discourse-cdn.com/v4/letter/c/eada6e/32.png) [@control-z](https://boards.straightdope.com/u/control-z)\ **Post date:** [November 26, 2008, 6:39pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/7 "2008-11-26T18:39:24Z")
Yep, quite dangerous. And lord help you if you miss a payment, either intentionally or accidentally. They can raise your interest rate, make you pay a penalty, lower your credit limit, all sorts of things. Overreact much do they? ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [November 26, 2008, 6:43pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/8 "2008-11-26T18:43:01Z")
> [@autz](#): > > The way I got my spending under control was to only bring cash, no other payment methods. > > So if I was going to the grocery store and could afford $40 in groceries, I took only $40 in cash with me, nothing else. It meant I had to pay close attention to what things cost. I had to do some real adding. And if, when I got to the checker, it was over my $40, I had to put something back. > > It was a huge pain. And I had to do it for about 6 months before I got the hang of it. But now I decide ahead of time how much I can spend at Home Depot or Target, and I don’t go over it. I have an app on my Palm (bought with a cc, ;)) that keeps a runnung total for me. It works with my shopping list. ---
**Author:** ![An\_Gadai](https://avatars.discourse-cdn.com/v4/letter/a/d6d6ee/32.png) [@An\_Gadai](https://boards.straightdope.com/u/An_Gadai)\ **Post date:** [November 26, 2008, 6:46pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/9 "2008-11-26T18:46:56Z")
That’s why I only have a €600 limit on my c/c. ---
**Author:** ![glee](https://avatars.discourse-cdn.com/v4/letter/g/b5a626/32.png) [@glee](https://boards.straightdope.com/u/glee)\ **Post date:** [November 26, 2008, 6:52pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/10 "2008-11-26T18:52:42Z")
When I was a kid, I saved my pocket money for 4 months to buy a toy I wanted. Now I have a £10,000 ($20,000) limit on my credit card. 🆒 Since I pay it off each month, I have never got into any financial trouble. Nor have I paid the credit company any interest. Ever. Think of a credit card as like a hole-in-the-wall cashpoint. It’s just there so you don’t have to carry cash. **But you don’t spend it if you haven’t got it.** ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [November 26, 2008, 7:11pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/11 "2008-11-26T19:11:08Z")
> [@glee](#): > > When I was a kid, I saved my pocket money for 4 months to buy a toy I wanted. > > Now I have a £10,000 ($20,000) limit on my credit card. 🆒 > Since I pay it off each month, I have never got into any financial trouble. > Nor have I paid the credit company any interest. Ever. > > Think of a credit card as like a hole-in-the-wall cashpoint. It’s just there so you don’t have to carry cash. > **But you don’t spend it if you haven’t got it.** Or if you blow a tyre (that’s for you, **glee** ;)) in the middle of nowhere. ---
**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\ **Post date:** [November 26, 2008, 7:21pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/12 "2008-11-26T19:21:30Z")
Amazon is offering a Boston Acoustics Horizon Series MCS100MDNT 5.1-Channel Speaker System for $200, free shipping. That’s a pretty nice system for a pretty good price. All I have to do is click, and it’s mine. But I’m strong. 🆒 ---
**Author:** ![Spice\_Weasel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spice_weasel/32/5435_2.png) [@Spice\_Weasel](https://boards.straightdope.com/u/Spice_Weasel)\ **Post date:** [November 26, 2008, 7:37pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/13 "2008-11-26T19:37:05Z")
I learned this lesson the hard way, racked up about $10k in credit card debt as a college student, and came darned close to filing bankruptcy at the age of 22. I sought relief through debt counseling, and that made such a difference in my life that I actually am now working for the same company that once helped me pay off my debt. Now I do not spend beyond my means and my credit is good, getting better all of the time. Also, because of my line of work, I now know more than the average bear about credit, so win-win! As someone who works in the business, let me tell you now is not the time to think of credit cards as a second income. The credit card companies are getting ruthless, interest rates are skyrocketing and penalties increasing substantially. It’s not a good time to be in debt. Be careful! ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [November 26, 2008, 8:10pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/14 "2008-11-26T20:10:01Z")
Another one here who went through the credit card flameout. Now I am debt-free and run on cash. I am even my own bank; I borrow money from my savings account and pay it back. I have a Mastercard that is pre-paid; when I want to use it, I must plan ahead and load it up. I’ve bought plane and train tickets on it and all sorts of other things across the net. I have to admit that I’ve had a few twitches to apply for a new credit card; I’d like to be able to rent a car on occasion. But that’s the only real reason, and so far I’ve resisted. My “credit score”, as far as I can tell, is now reasonable; the consumer proposal I filed back in early 2001 was done in early 2005 and has dropped off my record. ---
**Author:** ![Alice\_The\_Goon](https://avatars.discourse-cdn.com/v4/letter/a/ed8c4c/32.png) [@Alice\_The\_Goon](https://boards.straightdope.com/u/Alice_The_Goon)\ **Post date:** [November 26, 2008, 9:15pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/15 "2008-11-26T21:15:00Z")
Good for you, **Sunspace**! I knew you were in the process of all that and am glad to hear that you did it and became debt-free! Of course credit card debt is a huge problem in this country (and Canada, apparently), and a big part of the reason for the economic meltdown. \* Everybody\*, it seems, bought a LOT of stuff- overpriced houses, oversized SUVs, big-screen plasma TVs, etc., and not planning very well about how they were going to pay for it. At least maybe the recession will bring about a change in values for the better. I would like to call upon America, and our neighbors to the north, to harken back to a simpler time, when we valued family and friends more than objects and technology nah just kidding. I’m getting myself a big-screen tv for Christmas. 🆒 ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [November 26, 2008, 9:25pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/16 "2008-11-26T21:25:15Z")
> [@Alice\_The\_Goon](#): > > Good for you, **Sunspace**! I knew you were in the process of all that and am glad to hear that you did it and became debt-free! Thanks, **AtG**! And the best thing is, I can negotiate a very reasonable interest rate when borrowing my own money! 😃 (And I’m acting richer than many people I know these days too. They may make three times as much as me, but I always seem to have more manoeuvring room. And, following Dave Ramsey’s advice, I no longer _lend_ money. I sometimes choose to give it.) I’m just afraid that if I buy a big-screen TV, I’ll experience the same thing that happened when I bought a DAB (digital) radio. I listened to it on the way to work and discovered that morning drive-time radio still sucks. The thing has sat unused in my drawer for well over a year, while I listen to my iPod and/or netradio. ---
**Author:** ![rocking\_chair](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rocking_chair/32/2918_2.png) [@rocking\_chair](https://boards.straightdope.com/u/rocking_chair)\ **Post date:** [November 26, 2008, 9:47pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/17 "2008-11-26T21:47:20Z")
> [@Sunspace](#): > > And, following Dave Ramsey’s advice, I no longer _lend_ money. I sometimes choose to give it.) my grandmother who came over on a slow boat from russia would say this as well. her way of saying it was: “never lend what you can not afford to give.” i didn’t get her money sense, but this is one thing i do follow. if i give you money, i’m not expecting to get it back. if it does return, that’s lovely, but i won’t hold it against you if it doesn’t. as far as credit cards go. amazon and target are dangerous places for them. ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [November 26, 2008, 10:03pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/18 "2008-11-26T22:03:12Z")
We’re not at a point yet where we can donate to charity, but I do like leaving HUGE tips at restaurants when I eat by myself…$9 on an $11 check was my last one. I figure a one-top isn’t very profitable anyway, and I used to be a server, and my son is now, so I get a secret glee leaving a big tip. And no, we’re not going to turn this into another Tipping is Evil-No It’s Not thread. ---
**Author:** ![pulykamell](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pulykamell/32/3166_2.png) [@pulykamell](https://boards.straightdope.com/u/pulykamell)\ **Post date:** [November 26, 2008, 10:09pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/19 "2008-11-26T22:09:19Z")
I charge almost all my purchases, but not because I think of my credit cards as a second income. I just don’t like carrying cash, it makes accounting much easier, plus, with the rewards program, I get 1% back of my purchases. I keep no balance, so it’s also a 30-day interest free loan, which I see no downside to. I don’t see any good reason not to use a credit card. I just got a nice $500 check a few months ago for using my card instead of cash. I mean, hey, free money. Why not? ---
**Author:** ![eleanorigby](https://avatars.discourse-cdn.com/v4/letter/e/ee7513/32.png) [@eleanorigby](https://boards.straightdope.com/u/eleanorigby)\ **Post date:** [November 26, 2008, 10:30pm UTC](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579/20 "2008-11-26T22:30:46Z")
I now use only cash to pay for stuff like Christmas presents etc, but I have to ask: what do you all do for high end repairs? My mechanic no longer takes personal checks and I just had to pay $512 for some major brake work. It went on credit, of course. I hope to pay it all off at the end of the month, but seriously, what do you all do for stuff like that? Furnace repair, plumbing etc? Sometimes you have to use credit. We’re paying off 20K–very stringent budget, very limited Xmas this year. And once that card is down, I’m going to “say” that it has a 5K limit, tops. I am not the only on who uses this card and that is a problem (at times). It cost my husband $75/tank of gas for a while there–and he used at least 2 tanks/week just getting to work (an hour drive one way). That adds up, very quickly, no matter how you pay for it. [Next page](https://boards.straightdope.com/t/my-credit-cards-a-second-income/474579.md?page=2)