I will not go back to using a credit card until the USA's income Gini index falls below where Norway is now.

[en.wikipedia.org]

@Skaperen: Oh, that's just too much math to comprend in the morning!

Weren't equations that that one partially to blame for the mess we are in?

@bloggerX: The result of the equations is the problem. Basically, it's a measure of how much the rich are "taxing" the economy.

@Skaperen: Yeah, Norway is a pretty good place once you get used to it. And strangely enough, I haven't had to use my credit card here for over a year (still use it to pay for some services in the States, though).

Cue in the "Thats why I never use Credit Cards. I am so smart that I stick to using Debit Cards. Unlike you nincompoops." As a bonus: "I watch my balance and never get overdrafted".

Because I pay my credit card off every month in full, if I ever have to pay more than the stores/services charge me, I'll just stop using credit.

(yes, they make money off me by charging the retailers, but I admit I'm not that important to them because I don't make late payments and pay +20% interest, so they won't miss me much).

@MostlyHarmless: They also use credit unions and make stuff at home. if they can't make it, they buy it at mom & pop local places.

also it's organic.

why is there always somebody trying to make a profit out of everything I do!? I can't wait for the day that i cant even buy a latte without paying the 'buy the latte fee'

@MostlyHarmless: I attended a lecture recently by the head of the Office of Information Security and Privacy Protection of the State of California, who described at length the benefits of using a credit card over a debit card in terms of limiting personal liability as a result of fraud.

I'm kind of afraid of my debit card, and I'm never quite sure if I'm using it correctly. I get "pin-entering-anxiety" for some reason.

1. Higher rates for everyone
Good thing I pay in full each month.

2. Moving from fixed to variable rates
You can always opt-out.

3. Annual fees
*waves goodbye*

4. Usage fees
*waves goodbye*

5. More junk mail
Just opt out.

6. Reward hoops
*waves goodbye*

@ludwigk: Yup. That is just one of the reasons to use the credit card. One of the biggest ones, if you ask me.

But hey, credit cards are evil. And if I so much as have a credit card in my pocket, it means I am thousands of dollars in debt.

@wcnghj: agreed. I am in the same position as you, and I also have no problems using cash or checks

@tonalanswer: Misconception. You're a low risk to default, and you DO make them a lot of money in merchant fees. They're not sending desirable card offers to people paying a lot of interest, even if they're diligent about their payments; they send desirable card offers to people like you who pay it off every month and (ideally) who charge quite a bit so they get the merchant fees.

Everyone is so concerned that this will be permanent. It won't. Sure, banks are now raising rates, coming out with usage fees and other ninnies to watch out for.

But, as always happens, market forces will dictate where this ends. Some new bank(s) will see a marketplace where folks are paying through the teeth and will offer credit without the fees and charges, and then we are right back to where we were three years ago.

@laughingisfree: Just don't use checks at the grocery store.

@bayank: You forgot the enter the store fee, the standing in line fee, the pleasant barrista fee, the cup fee, and the insulating cardboard for the cup fee. Did I forget any?

But wait, don't variable rates mean they'll go down as well? Don't we believe in the magic of the unfettered marketplace?
Huge, faceless corporations are our friends, are they not?

On an unrelated topic, Isn't the Brooklyn Bridge beautiful? I'm glad you like it, since a very nice gentleman will be selling it to me tomorrow!

@laughingisfree: I rarely use cash. Since may I've used less than $150 in cash.

I know my local credit union will always be there for a no annual fee option and I'll continue to enjoy the benefits like chargeback protection.

All the big issuers aren't going to start in on AFs thought..

@MostlyHarmless: "Yep, that's why I don't use credit cards. Pay them off every month, don't carry a balance. Plus I eat only organic, shop mom and pop stores exclusively, and drive a car powered by my own farts.."

I'm glad you don't have credit card debt, eat granola and live exclusively off of credit card rewards. Some of us are not so lucky. Not everyone is in your situation, and you should be respectful of that fact.

Credit cards are a great way to use a bank's money for a month. Pay in full and you still get rewards. I don't understand why everyone gets in a huff. If you can manage your money you shouldn't have a problem with using your Amex.

@Buckus:

1. Thats not my quote.
2. Thats not the original quote either
3. The point of MY original post was to highlight the absurdness of certain commenters who claim that anyone with a credit card is bad with their finances and is deep in debt.
4. Having been in tight financial situations before (including a family sponsored bailout), I am very thankful for the fact that I am free of debt.

@MostlyHarmless: Thank you! I love the Consumerist, but so many of the commenters just seem to love feeling smarter than everyone else that I sometimes have to stay away for weeks at a time.

@caligulala: But most of us *are* smarter than everyone else! We read this website! :D

Seriously though there are always going to be people who think they are higher and mightier than everyone in every single popular online forum in existence. Just ignore them, they hate not getting attention. :)

@Trai_Dep: Not if my best friend the Prince of Nigeria gets me those millions upon millions of dollars to me for my small investment of $2000 to cover the costs of transferring so much money into my bank account! Then I'll be buying it!

@zacox: New banks? I've heard of banks merging, I've heard of them closing, I've heard of them being shutdown, but "new"? Is that like when a bank changes its name?

@SacraBos: what if i want a napkin or one of those stirry-thingys? is there a fee for that?

on 2 -> has anybody had a fixed rate card in the last 5 years? i mean, my CU visa has been fixed since i got it 12 years ago (still is, despite CARD), but all my other "fixed rate" cards went variable ~2003.

honestly curious here, b/c i haven't seen them.

Credit cards are like alcohol. If you don't abuse them, you will not have a problem.

@mac-phisto: In 2005, I got a Capital One MC that was specifically for persons with high credit card balances upward of $10,000 (I was recovering from unemployment at the time) that still has a fixed 7.9% rate on it. Also, in 2007 I got a MC through my Edward Jones account that has a fixed rate of 9.9% that gives points rewards. Currently I use the CO card for gas purchases, just to keep it active, and use the EJ card for everything else, and both are paid off in full at the end of the month.

My CU also has a Visa card available with a fixed 8.9% rate, that has the identical points rewards as my EJ card, but I haven't bothered to get it because 1) my EJ card does the same thing, and 2) The CU card is a Visa, which can't be used at Sam's Club except as a debit card.

@morlo: It doesn't happen all the time, but new banks to appear on the horizon. Capital One is one such example. They spun off from Signet in 1988 (only 21 short years ago), then began mass marketing credit cards in the 90s. It's true that banks have been huge in the M&A department since the mid 90s, but as the market grows again and there are fewer banks now than before, we will see a resurgence in new financial services businesses.

@MostlyHarmless: Actually, that wasn't aimed at you - you seem to be cognizant enough to know that not everyone is in the same situation or could be in the same situation. The comments ate my "rant" tags. It was aimed at anyone who will imply that having debt=evil and everyone with debt should just shoot themselves in the face on account of how stupid they are.

@Buckus: Ah. That makes more sense indeed. Youre cool ;)

If you pay off your credit card account each month why not just go to a debit card instead. Banks make money on credit, that is the lending out money that they can charge you for. Banks don't like people who pay off their accounts each month, no they like people who maintain a chargeable balance each and every month. The fees and stuff are just added gravy on that basic charge. Banks don't want you in charge of your money, for they want to be in charge of it. Credit cards are more like the hard drugs including alcohol. I really hope the system does not return to normal.

@ageshin: Cashback, chargeback protection, travel benefits, etc.

Banks do like those that Pay In Full these days. They still make their interchange fee.