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Paying with all cash in 2008

10 Responses to “Paying with all cash in 2008”

1. merch Says:
   December 27th, 2007 at 10:28 am
   I tried that last year and at the end our society isn't set up for cash transactions.
   
   The way I have things set up is:
   
   1) Put together a monthly budget
   2) As paychecks come in - fund the different items
   3) Do not spend more then is funded
   
   It takes a little practice because the bills don't come in all at the same time.
   
   I use MVELOPES to track by budget and it hooks into all my financial institutions. So far so good. There are probably less expense ones out there (I keep hearing YOUNEEDABUDGET.COM).
   
   Good luck.
   

2. fern Says:
   December 27th, 2007 at 10:29 am
   Well, if you stop all activity on the cards, it will affect your credit in a negative way, I would think. If you foresee yourselves ever needing a loan, a potential lender would be concerned that you haven't demonstrated a consistent and ongoing good track record with paying off revolving credit. This will also lower your credit score. I'm not at all an advocate of credit card debt, but i guess the ideal middle road here would be to use the credit cards with self discipline and pay them off in full each month. That would definitely help your credit score and ratings, unlike your plan to just stop using them.
   
   PS I like your goals, a nice mix of hardcore financiali stuff (and just like me, one is to save a million) as well as home improvements and personal items.

3. debtfreeme Says:
   December 27th, 2007 at 10:39 am
   i pay cash for 90% of everything. I figure out what i need for the month for groceries, gas, fun, (clothing and car repairs savings) then i take that amount out and leave everything else at home execpt for an emergency cc for if my car breaks down or something.
   
   I take teh cash i need out each day and most days i spend nothing so it makes it quite nice. i limit myself to 120 a week for fun, gas and groceries and most weeks i spend a lot less.
   
   don't cancle you cc's though because it will hurt your credit score.

4. collegemomma Says:
   December 27th, 2007 at 10:53 am
   One thing to remember is that if you plan on going all cash and have all debts paid off during retirement, then your credit scores mean nothing to you. If you think you may need a loan at some point during your retirement (say to purchase another home), then you only need to find a lender that is willing to do manual underwriting. Your assets will speak for themselves without the credit score. The ideal in a situation like this is that you would have cash for everything you need and the only potential need for credit would be to purchase property due to a larger loan amount.

5. Ima saver Says:
   December 27th, 2007 at 11:19 am
   I pay cash for everything too and I use the envelope method. My husband charges his building supplies, but that mastercard is paid off every month. (Plus we get cash back)

6. disneysteve Says:
   December 27th, 2007 at 03:37 pm
   collegemomma - Your credit score is used for more than just lending today. Many auto insurers use it to determine your rates. Employers look at it before hiring you. Landlords check it before renting to you. So even if you never plan to borrow a cent, your credit score still matters.

7. collegemomma Says:
   December 27th, 2007 at 07:10 pm
   All that is very true, disneysteve. And I agree to change my opinion as I was thinking in my one dimensional brain from formerly processing and underwriting loans. I'll instead say that it can be more important to some, but not necessarily all people.
   In his case the only thing he'd need to worry about then would be the auto rates. If he is retired, he won't be looking for a job. If he already has a home, he won't be renting.
   
   Of course, I don't agree that the credit score should even be used for anything but determine if you are a good credit risk. I think car insurance should be based on area and accident claims/tickets. Employment should be based on experience, recommendations, and ability to do the job. Landlords I understand...that falls under credit risk. But I'm just weird like that thinking credit scores should be actually used to determine credit risk only...what a strange concept! LOL!
   
   Thanks for setting me straight!

8. Broken Arrow Says:
   December 27th, 2007 at 07:24 pm
   When I started out, I stopped using credit cards as well, and switched to mostly cash (whenever possible. If not, I used a debit card). In short, I took the Dave Ramsey route. It'll work!
   
   Eventually, I returned to a credit card, but not before I got myself straightened out.

9. Mr. Meager Says:
   December 27th, 2007 at 11:33 pm
   I tried to be as much cash oriented as possible but it was just impossible to get to the bank sometimes. I also prefer to pay for gas at the pump rather than see a cashier. Good luck with your endeavor.

10. terri77 Says:
    January 6th, 2008 at 07:20 pm
    I like the idea of paying all cash as advocated by Dave Ramsey, but I just prefer using my credit cards. I like the security I feel using a credit card rather than handing over cash.

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