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a bit lost financially


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#1 kass87

Posted 17 July 2019 - 02:14 PM

We have quite a bit of money in the bank at the moment. I want to pay off the credit card and cancel but hubby says we need it. He says we cannot pay for certain things without it. I'm sick of paying it off only for it to get maxed out again.

#2 ~LemonMyrtle~

Posted 17 July 2019 - 02:22 PM

A visa debit card can be used wherever a credit card is required.  Or you can reduce the limit of your credit card to a really low amount, if you really want it as a back up, call your bank and get it changed once you pay it off.

Since changing banks recently, we haven't used a credit card in months, but our savings card is a visa debit card, so we use it for paypal, and online, and whatever else we need. There is a risk in having a credit card linked to your actual real money account, if someone steals your card details they are stealing your actual money, not credit card money, but we protect ourselves by using paypal a lot, and its linked to our every day account, which isnt a lot of money at any one time, not our savings. And if you use the credit function i think you are still protected by the credit card's insurances anyway.

#3 PrincessPeach

Posted 17 July 2019 - 02:32 PM

I've never had a credit card in my life, only a visa debit card and I haven't come across anything that I couldn't pay for.

If anything it's easier now to have a visa debit accepted than years ago.

DH has a credit card, it gets used once a year to pay the rates just to keep it ticking over.

#4 kass87

Posted 17 July 2019 - 02:35 PM

Thanks guys. We are on very low income and I don't see why we should keep it. I'm sick of paying the fortnightly amounts on it. Just want it gone. I don't even know how he would have got it approved.

#5 Bereckii

Posted 17 July 2019 - 02:35 PM

 kass87, on 17 July 2019 - 02:14 PM, said:

He says we cannot pay for certain things without it.

What does he mean here?

Does he mean credit is needed at some times of the year? (E.g. because your cash flow doesn't accumulate sufficiently to cover a few big bills that come on at once)

Or (as pp queried) because he doesn't think a debit card can be used for online payments?

Or...?

#6 kass87

Posted 17 July 2019 - 02:37 PM

He says we cannot pay for monthly things like his Microsoft subscription and also for domain subscription.

#7 ~LemonMyrtle~

Posted 17 July 2019 - 02:38 PM

Pay for those with a visa debit card. Easy. It’s a Visa (or MasterCard) he needs, not the credit.

#8 Bereckii

Posted 17 July 2019 - 02:39 PM

 kass87, on 17 July 2019 - 02:37 PM, said:

He says we cannot pay for monthly things like his Microsoft subscription and also for domain subscription.

Because expenditure is higher than income/savings?

#9 kass87

Posted 17 July 2019 - 02:42 PM

No we seem to be getting better with our budget. I don't really understand Thom I have always thought a Visa card was kinda like a credit card but using your own money

#10 bikingbubs

Posted 17 July 2019 - 02:42 PM

Does he say you can't pay for it because you can't afford it upfront or can't pay because of the payment facilities available?

#11 kass87

Posted 17 July 2019 - 02:45 PM

The payment facilities available.i just don't get it

#12 Bereckii

Posted 17 July 2019 - 02:49 PM

A debit card can be used for the payments you have mentioned.


This specifically says a Microsoft account can be paid by debit card:
https://support.micr...-or-credit-card

Edited by Bereckii, 17 July 2019 - 02:53 PM.


#13 Caribou

Posted 17 July 2019 - 02:56 PM

I don’t think I’ve come past a requirement for CC since well ten years now. Last time was hotel. It felt like they were the last of the places that insisted you had to have a CC or front up $500 deposit for room (refunded upon departure)

Pretty sure nothing can force you to have a CC these days.

#14 bikingbubs

Posted 17 July 2019 - 02:59 PM

Swap to a debit card then.  You can only use it if you have actual cash in the account, but can be used in the exact same way as a credit card.

#15 born.a.girl

Posted 17 July 2019 - 03:01 PM

Car hire is one of the few things that 'require' a credit card.


How do you pay for things like groceries?


ETA: And if you use a debit card, make sure it's not attached to the account with the funds in it. Make it hard to transfer into the debit account.

Edited by born.a.girl, 17 July 2019 - 03:02 PM.


#16 Romeo Void

Posted 17 July 2019 - 03:01 PM

You can use a Debit card exactly the same as Credit card, its just with your money instead of borrowed (that you need to pay interest on). We haven't had a Credit card for 30 years and have no trouble hiring cars.

Edited by Romeo Void, 17 July 2019 - 03:02 PM.


#17 born.a.girl

Posted 17 July 2019 - 03:04 PM

 kass87, on 17 July 2019 - 02:42 PM, said:

No we seem to be getting better with our budget. I don't really understand Thom I have always thought a Visa card was kinda like a credit card but using your own money


Visa and Mastercard both have 1) credit cards and 2) debit cards.


We have both a debit and a credit card.


We do actually put everything on the credit card, but it's paid out in one lump sum each month. The debit card is for withdrawing cash.  Others use it for everything.


ETA: There is no need to pay interest on a credit card. There are companies that give you decent lengths of time to pay off, interest free, AND no annual charge.   Some car companies do specify credit card, not debit.  Never tested it though.

Edited by born.a.girl, 17 July 2019 - 03:05 PM.


#18 born.a.girl

Posted 17 July 2019 - 03:05 PM

 Romeo Void, on 17 July 2019 - 03:01 PM, said:

You can use a Debit card exactly the same as Credit card, its just with your money instead of borrowed (that you need to pay interest on). We haven't had a Credit card for 30 years and have no trouble hiring cars.


Never pay a cent of interest on either of our credit cards.

#19 Kallie88

Posted 17 July 2019 - 03:31 PM

Agree with others, debit card should do the trick. I've never had a credit card, have never had an issue using the debit instead, got the debit when I was 18 as I do regularly purchase online. As long as you actually have the money there's no reason it shouldn't be enough.
I'd also be surprised if those things didn't have direct debit options anyway?

#20 qak

Posted 17 July 2019 - 03:42 PM

I prefer a credit card for security reasons - if someone illegally accesses the card, it is the bank's funds at risk, not yours.

It doesn't *usually* make sense to pay interest on a credit card when you have funds in the bank to pay it out. You might be able to get a tax deduction for the interest (if the expenses were for business purposes) but the after tax cost of that interest is still going to be much higher than the interest you earn keeping funds in the bank.

Ideally though, you would have some savings for emergency purposes.

OP - how about paying off the balance and reducing the limit on the card? I think there is a minimum limit, but that might reduce the issues you are having.

#21 Dadto2

Posted 17 July 2019 - 04:03 PM

When i separated last year I got a $6k credit card. The theory being you use your CC for spending and then pay if off when you get paid. But I wasn't disciplined enough and it got out of control. Before I knew it my wage wasn't enough to pay off the CC. I cancelled it and got a $1k card which is much more manageable. Even if I spent all $1000 in a fortnight, I'd be able to pay the lot off. Also I now do bill smoothing which helps heaps. I guess credit cards are designed for people like me, that don't have the discipline to maintain payments.

#22 nom_de_plume

Posted 17 July 2019 - 04:08 PM

I’m another who has never had a credit card in my life. I have a Visa debit card and either pay using that, cash or bank deposit.

I’ve also travelled overseas extensively, hired cars and booked hotels (often a reason people say they need a credit card), any never encountered any issues.

#23 SeaPrincess

Posted 17 July 2019 - 04:13 PM

If you have the money in the bank, you should absolutely pay the credit card off. The interest rate on ours is around 20% (it’s different for purchases vs cash withdrawals), but we never withdraw cash and pay it off every month so we pay 0%.

If you look at your statement, it should show how long it will take to pay it off if you only make minimum payments and don’t put anything more on it, as well as the interest that you would pay in that time.

Personally, I like to use PayPal online as much as possible. That way only PayPal has my details.

#24 born.a.girl

Posted 17 July 2019 - 04:14 PM

 Dadto2, on 17 July 2019 - 04:03 PM, said:

When i separated last year I got a $6k credit card. The theory being you use your CC for spending and then pay if off when you get paid. But I wasn't disciplined enough and it got out of control. Before I knew it my wage wasn't enough to pay off the CC. I cancelled it and got a $1k card which is much more manageable. Even if I spent all $1000 in a fortnight, I'd be able to pay the lot off. Also I now do bill smoothing which helps heaps. I guess credit cards are designed for people like me, that don't have the discipline to maintain payments.


They still make plenty of money from the merchant.

What I find staggering, is the difference between credit card interest rates and home loan rates & the cash rate.

They were always much higher, but when home loan rates were at 17% at the beginning of the 1990s, they weren't 10% higher.

The trend for home loans and the cash rate has been down for years, yet quite a few credit card interest rates are still incredibly high.

#25 c00l

Posted 17 July 2019 - 04:20 PM

I'm also another one who was hopeless with credit cards so when I finally paid mine off 5 years ago I never got another one. Ive been able to use visa debit for everything and paypal for added security for online purchases.




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