How prevalent is the use of credit in your country/society

OT: Don't you guys have debit cards? Most places here dont even accept credit cards anymore because of the fees, with a debit card you can be sure people only spend money they actually have.
 
un-dee said:
OT: Don't you guys have debit cards? Most places here dont even accept credit cards anymore because of the fees, with a debit card you can be sure people only spend money they actually have.
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Debit cards make it harder to keep track of your bank balance IMO as you have to deal with receipts, although online banking does solve much of that.
 
I wondered the exact same thing. I have now Visa Electron (toy-Visa). But since I'm so good at school that now I have over 90 points (or what ever they are in english) so I could have combined debit card and Visa. Which I probably will take, because Electron is a pain in the a** when it always checks if I have enough money.
 
huh, please explain how your financal liberty is connected to your school points or something :)

@ un-dee: I use my debit card (maestro, I think) all the time in the shop when buying food and stuff. I only use my credit card for online purchases because visa/mastercard is much more supported there. I don't see how using a debit card would it make more difficult to track your bank balance than a credit card? It's digital money in both ways and if you want to use them wisely you always have at least a faint idea about how much you are supposed to spend. With a credit card you also only get a receipt at the end of the month...
 
I use a mixture of my debit (Maestro) and credit (Mastercard) cards, when I do use credit, I only spend what I know I have in the bank, and then it's mainly only for petrol, tickets or online stuff.
 
CyberMonkey said:
huh, please explain how your financal liberty is connected to your school points or something :)
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There is basicaly two ways of getting a credit card:
1. being at work
2. studying, but to prevent that someone would just go to school and get credit card banks don't give credit cards until you are have been there for certain time. My school is 240 academic credits (that's probably the correct translation, should be same in every EU country), I can get credit card after 90 academic credits.

I admit that saying I was somehow better than others was a bit misleading.

edit: here's some more about those academic credits, ECTS
 
I should add that the above is only for third degree students (meaning polytechnics and universities). I got my first credit card while still studying and before getting a regular job.

On (sort of) the topic, back in spring when I had to find a new place to live everyone around me was recommending me to loan money and buy an apartment (would have been well over 100k?) rather than rent one. I went for the latter option. I can't imagine how stressful times these would be if I had gone for the former.
 
Yup we use "credits" as well, one year is sixty of them. And damn that's some sick regulation there although I can see the positive side of it. Ha, I bet Jetsetter's steaming right now. "damn eurosocialists with their regulations".
 
its used alot for big things like houses and cars, creditcards not so much though. Also the rules are pretty tight, most banks will make sure you can't loan more than you are able to pay back.
 
Viper007Bond said:
Debit cards make it harder to keep track of your bank balance IMO as you have to deal with receipts, although online banking does solve much of that.
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I mostly use a debit card these days, and in combination a online banking, keeping track of my balances and transactions are near instant and spot on accurate, moreso than when I totalled things up w paper receipts and pen/paper which was always subject to clerical errors
 
un-dee said:
OT: Don't you guys have debit cards? Most places here dont even accept credit cards anymore because of the fees, with a debit card you can be sure people only spend money they actually have.
Click to expand...

Credit cards are hugely popular and accepted in the UK. I got one, aged 18, with my student account, and it's been the main instrument in encouraging me to spend recklessly. It's my own fault, I know that, but if I hadn't had the credit card I wouldn't've spent so much.

On the other hand, France doesn't really have credit cards at all - they just don't exist. Instead, you have a 'carte bleue', which is basically a debit card - it draws funds straight out your normal account. It's good, as you always know how much you have - especially with online banking - and if you don't have the money you can't buy the products.
 
credit : using it currently (and will be doing so for a loooooooooong time) for house payments.
Never used it for a car though, I always saved up enough to be able to buy it then and there.

With regards to credit CARDS, I have a Visa and the wife has a Mastercard, but I don't usually use them for anything... unless it's online stuff or a big purchase I don't want to/ can't pay for right now.
 
I've always been annoyed at many online purchases requiring a credit card (I don't have one), but PayPal has saved me on that. Also annoying is this relatively new concept of credit gift cards: credit cards preloaded with x amount of cash. While a gift card that can be used almost anywhere is an interesting idea, you can only charge an amount less than or equal to what is left on the card (so if you have $1.44 left you'd better find something worth $1.44), after one year they charge a monthly fee of $1.50 or so to maintain the balance, and they even charge you to CHECK THE AMOUNT LEFT ON THE CARD. Complete ripoff... much better off giving cash.

Credit cards are very common but not ubiquitous. When I worked at McDonald's we had people charging $1 burgers. It is the norm to buy a car and especially a house on credit, and often prices are advertised as monthly fees to seem more affordable. I once saw an add to buy an RV (not sure what you call it overseas... like a caravan, but with the vehicle built in) at $199 a month... for 40 years. You also see "financing options" on everything from appliances to electronics, often with quotes like "no interest/payments till January 2009," although this is less common nowadays.

Personally I have no use for a credit card for now, except maybe as a convenience at the pump (but a debit card would do for that). Luckily there's a station nearby that doesn't make you prepay, so I don't have to guess how much money will fill the tank. I go there even if it's a bit more expensive just for that.
 
thevictor390 said:
Credit cards are very common but not ubiquitous. When I worked at McDonald's we had people charging $1 burgers. It is the norm to buy a car and especially a house on credit, and often prices are advertised as monthly fees to seem more affordable. I once saw an add to buy an RV (not sure what you call it overseas... like a caravan, but with the vehicle built in) at $199 a month... for 40 years. You also see "financing options" on everything from appliances to electronics, often with quotes like "no interest/payments till January 2009," although this is less common nowadays.
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That's really common in the UK, and you reminded me of something.

There're plenty kids who, once they turn 18, start collecting credit cards like they're pokemon cards, and who think that a TV that costs ?20 a month for 12 months is better value than the same one costing ?150 in one lump sum. An argument for basic financial knowledge to be taught in school, perhaps?

Personally I have no use for a credit card for now, except maybe as a convenience at the pump (but a debit card would do for that). Luckily there's a station nearby that doesn't make you prepay, so I don't have to guess how much money will fill the tank. I go there even if it's a bit more expensive just for that.
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Prepaying petrol stations? I've never heard of that. Do you have to say beforehand "I want $60 of petrol"?
 
Prepaying petrol stations? I've never heard of that. Do you have to say beforehand "I want $60 of petrol"?
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Exactly. Many of the nearby stations are like that. It's to prevent drive-offs but it also means you can't get a proper fill-up.
 
teeb said:
Prepaying petrol stations? I've never heard of that. Do you have to say beforehand "I want $60 of petrol"?
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yes its common practice almost every gas station in the US in my experience (and i've drive across the country twice!) as mentioned above, to prevent ppl from stealing fuel by filling up and driving off. So if you pay cash, you basically have to overpay and get a refund back in order to fill your tank, unless youre smart enough to figure out EXACTLY how much is needed to fill the tank.
 
teeb said:
That's really common in the UK, and you reminded me of something.

There're plenty kids who, once they turn 18, start collecting credit cards like they're pokemon cards, and who think that a TV that costs ?20 a month for 12 months is better value than the same one costing ?150 in one lump sum. An argument for basic financial knowledge to be taught in school, perhaps?



Prepaying petrol stations? I've never heard of that. Do you have to say beforehand "I want $60 of petrol"?
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we have prepay stations but it's a choice rather than a forced thing, so you can say I only want $20 in petrol and it pumps until the cost = $20
 
Except large investments like houses and cars me and the people close to me never buy anything on credit. If you dont have the money you dont, simple. We hade a financial crisis similar to the one the world is currently facing in the early 90's which led to the interest rate banks pay for lending money from the Central Bank was raised by 500% on the morning of the 15th september 1992. Then as now people had borrowed too much using houses and art as security. Swedish banks have been very careful with their investments and who they lend money since.
 
Personal: As a student I worked my ass off to stay in the black. Dipped slightly into my (interest free) overdraft after 4 years and had the typical student loan over the 4 years as well. I don't mind the student loan as I don't pay it back until I'm earning enough money and the interest is minimal. I've had acredit card the whole time but never used it. It's for emergancies only.

The UK: The credit problem here is silly. So many people get themselves in silly debt over pointless material goods to look richer. Then it goes tits up and they wonder why the baliffs are having their tv back. Crazy. Though credit to buy a house is almost a necessity, house prices mean only the richest can but a house without a loan.
 
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