> If everyone paid their credit cards off at the end of the month like they say they do, do you think credit cards would be advertised or pushed as hard as they are?
Yes. CC companies make money on every transaction (google keyword: interchange fee).
I am also one of those people that pays off my balance every month. In fact, I use an Amex charge card that is designed to be paid off every month.
If not using/having credit cards is what works for your family, more power to you. But don't assume just because I use a CC for my purchases I'm in debt or foolish. In fact there's a whole subculture of making money off of credit card offers (see /r/churning).
> If not using/having credit cards is what works for your family, more power to you. But don't assume just because I use a CC for my purchases I'm in debt or foolish. In fact there's a whole subculture of making money off of credit card offers (see /r/churning).
I don't think people are foolish for having credit cards. And certainly hope that my comment didn't paint credit cards or cardholders as evil.
I think there people like me, who grew up thinking that having a credit card payment was just how things worked. And if you wanted to splurge on something you could just put it on the credit card and pay it all off come tax return time. (Trust me I know how ridiculous this sounds, but this is what I learned growing up. I still see my friends and family continuing this insanity).
I did a quick Google search to make sure I wasn't completely off base here. According to the American Bankers Association Credit Card Market Monitor May 2016 report [http://www.aba.com/Press/Documents/ABA2016Q2CreditCardMonito...] 42.1% of Americans are Revolvers (carry a balance and pay interest) and 29.7% of Americans are Transactors who pay their bill in full each month.
This thread is about getting outside of the tech bubble. I consider myself to be blessed having grown up in a low income bubble, it was very humbling. I also consider myself even more blessed to be trending towards the tech bubble. These two bubbles are very different and I was trying to provide some context to that difference. Hopefully this helped provide a different perspective.
Yes. CC companies make money on every transaction (google keyword: interchange fee).
I am also one of those people that pays off my balance every month. In fact, I use an Amex charge card that is designed to be paid off every month.
If not using/having credit cards is what works for your family, more power to you. But don't assume just because I use a CC for my purchases I'm in debt or foolish. In fact there's a whole subculture of making money off of credit card offers (see /r/churning).