DR Question for canadians

[tricia80]

Ok so i have a question for canadian DR followers (hopefully i am not the only one here)

Anyways i am worried about cutting up the CC when i am done paying it off.. which will be Mid july if all goes according to plan... The reason being its what i use to rent a car or place a hold on something online and how i pay for my tupperware orders so i can put the order in right away and then wait for all the cheques from customers to clear...

In the states the debit cards have the visa logos which is what i miss being in canada... so how do the canadian DR followers do without the CC...

Its not in my wallet and i am not using it now as it is...

so basically... HELP!!!!!

[syd'smom]

hmmmmm...10 years ago I had a debit card from my credit union that was also a mastercard (had a $1000 limit). The money came out of my chequing account, but had the credit as back up, and could be used as cc payment. There may still be some banks that offer that option. Also, what about just having the cc company lower your limit to like $500 - still good for car rentals, hotel rooms, but less room for trouble!

[josybear]

owning a credit card that you barely used isn't bad, imo, unless you can't control your spending. i have a cc that i use instead of a debit card because it gives me air miles, but i never use it if i don't have the money. if i weren't as good at tracking my finances i'd file the cc away somewhere to use for booking flights, cars, hotels, and other things that require a cc.

i think following any financial plan is more about following the spirit of the law, not the letter. dr says not to have credit cards, which i interpret as not ever buying anything i don't have the money for.

[ChetMC]

Get the Lowest Limit You Can

A of people just have a card with an extremely low limit ($300 or $500). If you need to put something large on the card (like plane tickets), you transfer cash from your bank account to your credit card. For example, if you pay $2500 onto your $500 card you'll have $3000 available. And ideally, $300 or $500 is amount low enough that you can't get into trouble. If you use the credit card the limit is an amount can can pay off the same month. This is what I did for years as a student in Canada with a $500 card.

[CarrieMF]

In the states the debit cards have the visa logos which is what i miss being in canada... so how do the canadian DR followers do without the CC...

they're called global payment cards & you can get them in the US. Most people in the US use them & not the ATM cards that most canadians use.

We keep our cc's ontop of the fridge, we don't cut them up. Ask to have the balance lowered.

[BedHead]

Something that I heard once is to put your credit cards in a jar, fill it with water, and freeze it. That way you still have them if there's an emergency, but they're a pain to get out and use.

What is DR?

[mtm]

I kept mine open with a small limit for online registration, plane tickets etc. I pay then make an immediate payment on my visa.

[tricia80]

My card doesn't have an extremely high limit which is $1500

DR = Dave Ramsey

I am new to DR so i am trying to figure this all out... freezing my CC would be interesting...

I was thinking of even putting in a safety deposit box at my credit union... I haven't found a bank in ontario locally that is that has the visa/mastercard logo like i did when i was at wellsfargo in Az.

[granola_mom]

I've never had a credit card but just got one with a $500 limit to build credit on, which I'll need eventually in order to buy a house, car, etc. Right now I really have no use for it other than that- I never travel, stay in hotels or rent cars, just can't afford it.

DR has some good ideas but like other posters said i think its more about the spirit of not spending money you don't have. I plan to only spend $50 on the card monthly, from my cash budget, and pay it off in full right away. I read that it's best for your credit score if you keep your balance under 30% and ideally at 10% so that's what I'm doing. I see a cc as a tool that's easily misused. If you can go without credit for a while, stick to a budget and still save $ (and you aren't already in debt), get a low limit card and try adding that to the mix. If you can't do that, I wouldn't get one.

[Kyamo]

Originally Posted by granola_mom

DR has some good ideas but like other posters said i think its more about the spirit of not spending money you don't have.

I agree. I don't ever put something on my credit card if I can't afford to pay it off when the bill comes. Since I pay it off every month and don't carry a balance, I don't really consider it "real debt". I'm working to get rid of stuff like car loan, student loans, mortgage, the stuff that's costing me interest. Not the credit card that I have just for convenience and rewards, not because I need credit.

[tricia80]

ok that was my plan was to pay it right off...

thanks for the info ladies..