mad anthony

Rants, politics, and thoughts on politics, technology, life,
and stuff from a generally politically conservative Baltimoron.

Wednesday, October 13, 2004

Credit where credit is due...

MSN has an article about using credit cards for "survival debt" like groceries and fast food.

Now, much of the article is legit - if you are are putting groceries on your credit card and carrying a balance, it's probably a sign that you are in financial trouble.

Some companies are even rewarding consumers for putting their living expenses on credit. “American Express was giving double points for groceries,” McKinley says...
In fact, credit card companies are doing their best to help consumers feel comfortable acquiring debt at any point in their daily lives

I don't know if the sole reason for this is that credit card companies want you to go into debt. They also want the processing fee that is incurred every time you use your card. They also hope that if you get used to using that credit card, you will use it other times for larger purchases.

I'm one of those people who charges almost everything - groceries, gas, fast food, beer, ect. There are a couple reasons I do this. First of all, it means I don't have to carry cash around, not a small thing when you live in my neighborhood. Secondly, I get "float" - I charge stuff, but I don't get billed for it until up to a month later - that's basically an interest free loan. Why give up money now when I can wait a month to give it up? Thirdly is rewards - I primarly use a card that gives me cash back on everything (including a bonus for groceries and other everyday spending), with another card that gives 5% back for gas (and occasionally has other promos, like 5% back on groceries for a limited period). That's free money, and I don't leave free money on the table.


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