You may remember that last month I suddenly had to find nearly £600 for repairs to my Trundle Truck (mobility scooter). Last Friday my freezer died so I had to find £400 for a new one. Neither of those is an item which I can manage without!
I have a credit card but I usually avoid using it except when there is a real emergency or I want the protection of Section 75 of the Consumer Credit Act. This is a very useful piece of legislation which means that the credit card provider must protect purchases over £100 so if there's a problem I could get my money back and this "insurance" is free! However, there's something even more important - I always pay the credit card balance in full before any interest is due!
During 2019 I was trying to save £400 per month but in December I was able to save only £50. I paid for the repairs with the credit card but almost immediately paid it off and I feel quite pleased that I managed to save anything at all especially after shelling out for that and Christmas. I paid for the freezer with the credit card again but it won't be repaid until the end of next month, again long before any interest is payable.
We use our credit card the same way, normally only putting purchases over £100 on it and then pay it off. But it handy to have the back up, just in case of unseen issues.
ReplyDeleteWe are the same only using it as 'an insurance policy' and then paying it straight off. It is so easy to spiral into debt using cards the interest rates are so high. Glad you are able to get out and about again now the trundle truck is repaired.
ReplyDeleteWell done. It is a reminder to save whenever possible, at least as much as is reasonable and live a good life, so that when the inevitable hits, it is there.
ReplyDeleteI only have a credit cards that have 0% purchase period of 2 years. I make big purchases on it and pay it off. They are a very handy tool if used with thought.
ReplyDeleteWe always pay our credit card in full. I use mine to get money back at the end of the year.
ReplyDeleteGod Bless.
I use my credit card for everything and pay off the whole amount at the end of each month. My bank gives what are called Hotpoints (1 point for every dollar spent) and these points can be redeemed for vouchers at a multiplicity of stores. I need to replace my broken kitchen whiz and my iron is dying and I have enough Hotpoints for both those. So using my credit card this way works well for me.
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