Wednesday, November 24, 2010

I just looked at my credit card bill,

which I pay off on a monthly basis and spent a little extra time looking at it from a different perspective.

It was about average for the month, and there were no unauthorized charges or any kind of funny business on it. Still, it seemed a little high until I looked carefully at it. It has seemed a little high for some time now, but now I understand it a little better.

This month I received no bill for my cell phone because the cell phone company bills my credit card. I also spent no cash on tolls running back and forth to work because the E-Z Pass people also bill my credit card. My vehicle registration and driver’s license renewals also appeared on my credit card as did a couple of other routine items that I used to have to mail checks in for.

I also looked at the gasoline purchases and these days gas ain’t cheap. Gone are the days of Red Hat gas at 20 cents a gallon, which I paid many moons ago. The price of a fill-up has changed since I got my new vehicle a year ago, but the amount of gas I use has stayed pretty constant. The difference in fill up prices seems to have changed only because the tank in the new truck is bigger. It means fewer fill-ups, but they are now larger. It all comes out in the wash. The gas mileage is about the same so the bottom line stays the same.

Anyway, the reason the credit card bill has grown over the past couple of years is really because I am using it to pay for more routine things instead of forking over cash. I’m not really spending more money; I’m just using the card to pay for the same things that a couple of years ago I would have used a checkbook or cash to pay for.
There is one important thing, though. I don’t use the card for credit, I use it for convenience. I make damned good and sure that it gets paid off in full at the end of every single billing cycle, without fail.

It is when people start using the cards for credit that they start to get into trouble. If you need a loan, go to the bank and take one out. The interest rate is a whole lot cheaper.

When you think about it for a few minutes, I guess it’s a lot easier than having to drag out the checkbook or carry cash.

The checkbook isn’t too bad, but cash burns a hole right through my pocket, so when you think about it, I very well may be spending less because I’m not packing a wad of cash around.

I’m glad I stopped to think about that for a few minutes as now I don’t feel so bad.

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1 comment:

  1. Piccolo,

    Sounds like you are the perfect user for a debit card. All the perks of a credit card, with out any of the penalties and fees.