A cash and carry economy as part of President Obama's plan?

[Aviation Pro]

For the past five years I've carried no credit card debt. Everything that I've bought, with the exception of my car, has been a cash/debit transaction. Although it wasn't painful to give up fake money (credit cards), it had an added benefit of allowing me to exercise a higher level of discipline when it came to my buying and consumer decisions. Taking lunch to work, eating everything in the fridge and then going shopping, and exercising outdoors and using natural weights (sandbags in a rucksack) were just some of substitutes I used in place of using cash (or credit) for the sake of convenience. On top of these small changes to my lifestyle, I gained one other significant benefit: I've been able to consistently put money away in savings.

I believe that part of President Obama's message of asking for our help, to find the discipline to eliminate personal debt.

[firedupdem]

1. Good Post...

I'm doing that now because I have no choice! I wish I had started five years ago when you did! It's the best way to go....having a job always helps too.:)

[Tunkamerica]

2. I've done basically the same except I've never had a credit card

just paid off my used car this month. I have to think that sandbags in a rucksack have to be about the same cost as used weights from play it again sports.

Also, since I've been taking lunch to work I've actually spent a little more on food. I think that comes from starting to eat "breakfast" again which raises the metabolism and makes me eat a little more each day.


On edit: that's my 1000th post, wish I'd had something better to say.

[watrwefitinfor]

4. A 1000th post deserves acknowledgment.

:hi:

Never having a credit card and paying off a car sound as personally responsible as most anything else I've ever heard on this forum.

Wat

[Tunkamerica]

5. Thanks for the recognition

I routinely feel kind of out of place on this forum since I'm neither gregarious nor militant, eloquent nor original. But I am cheap and I think that ties into the whole living simply mantra.

[Political Heretic]

3. I have a 200$ credit card which I will pay off and close in January

After going through bankruptcy, I am so enthusiastically excited about never having credit again in my life. I don't know what that will mean when I have to get another car, though I intend to drive the one I've got (and fully own) into the ground. Maybe I'll have to take a car loan, but I certainly won't be buying a new car, and I'll be looking for the most affordable, responsible, efficient thing humanly possible.

In addition, I'm also hoping to be through with commercial banks. I'm too poor to have any sort of serious savings - and when I do perhaps I'll consider opening one savings account. But my experiences with banks have been that they are merciless on poor people living from paycheck to paycheck. Poor people often tend to have many more small purchases as I believe they live more day to day. I can't speak for all poor people everywhere, but I know that was true with me. If I made a mistake in my calculations, or if I had to try to stretch by and float a $1.95 check for milk so that I could eat cereal - my only food - two days till a paycheck, and that purchase overdrafted my account - it was an instant $39 overdraft charge plus another sort of service fee plus $7.00 per day each day the account was overdrawn. That added debt would spiral, being so much money that then I couldn't pay other stuff. One time I simply made a mistake, believing that my paycheck had been deposited when it hadn't. Yes, I should have double checked. But two charges - each for under $5 - put me over $100 in the whole thanks to bank fees. When my paycheck came, the fees alone took half of it. It is an utter racket that disproprotionately screws poor people.

As a result, I'm looking for every way I can to opt out of banks. Right now I'm testing out pay as you go (prepay) reloadable VISA cards, through places like Green Dot. You can stop into one of many locations all over my town and put money on the card, then use it just like a debit card. You can, for a small fee, do online bill paying from the card. You can even set up direct deposit to go right on the card for no fee. You use what's there. When its used up, its done. No overdrafting other charges. I'm going to see how that works for me for a while.

[Tunkamerica]

6. Truthfully if you are able to join a credit union

you'll be better off than through green dot. They are, by definition, non-profit while green dot is for profit and lures people in with convenience and cheesy commercials that advertise during judge shows. I will tell you from experience in the tv industry....anything advertised during a tv judge show is a scam. no exceptions.

[chomper68]

8. Political Heretic

Were the overdrafts from Bank of America? They have a few neat tricks to charge OD fees. They process the checks largest to smallest instead of by the date received. They had another neat little trick, they would deposit my payroll check the same day then a few weeks later they would put a hold on my payroll deposit for a week. Any checks I wrote that morning knowing I would deposit my payroll check by the end if the day would bounce twice! and I couldn’t get to what was left of my payroll check for 10 days

I added up all the OD fees for a 6 month period they collected almost $1000!!!!!

I switched banks not banking habits and haven’t bounced one check in 3 years!

Face it we are screwed Bush/Hank and our complacent congress are still giving the banks my money.

[lligrd]

7. Been Credit Card Free For 11 Years

and have had very few problems (and a lot less frustration) without them. I absolutely refuse to be forced to support the usury industry.

[Sen. Walter Sobchak]

9. That is a great idea, unfortunately

asking the American people to live within our means would be as popular as asking the American people to give up indoor plumbing. Breaking the sense of entitlement that seems to come with being American and feeds into rampant consumerism is going to be very difficult.

If this happens it isn't going to come out of a policy, social pressure or a shift in values, it will come out of unsecured credit no longer being available to most people.

I worked on personal bankruptcies for years and no matter how broke these people were, they still managed to find money for premium TV and an expensive cell phone plan.

[DailyGrind51]

10. I don't own a cell phone or subscribe to cable and only use my one credit card

to purchase my discounted prescription medication on-line. I maintain my 11-year-old car myself, which I paid cash for from a fleet outlet dealer, and do my own home repairs on my house which is fully paid off. I cook my own meals, carrying my groceries in a gym bag instead of using my car to shop, and "brown bag" my lunches.

By living within or even beneath my means, I can avoid debt and the stress it produces.

[patriotvoice]

11. Awesome!

:toast: