Simple credit card rule helps: Don’t ‘swipe’ the small stuff
September 24, 2016 By Sheryl Nance-Nash Special to Newsday
One suggestion for making better financial decisions: Don't charge purchases totaling less than $20. (Credit: Getty Images/iStockphoto / skynesher)
Sometimes a little encouragement goes a long way. An Urban Institute study found that simple rules of thumb about credit card use can be an effective and inexpensive way to help people make better financial decisions.
The Urban Institute teamed up with Arizona Federal Credit Union to deliver through email, online web banners when credit card users logged in, and as calendar magnets mailed to their addresses two simple messages to influence behavior: “Don’t swipe the small stuff. Use cash when it’s under $20” and “Credit keeps charging. It adds approximately 20 percent to the total.”
What results did they get? The “don’t swipe the small stuff” message proved to be most effective. Those who received that message, on average, had $104 less in revolving debt six months later and their balances were 2 percent lower than their baseline average.
This strategy has much potential elsewhere in money management. Says Michael Eckstein, a tax accountant in Huntington, “Between emergency funds, retirement accounts, and down payments for houses, there’s a lot worth saving for. A simple reminder to save a few extra dollars a month would go a long way.”
A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
Credit cards are better. It's easier to fight fraud. It takes a lot longer to go through your bank if someone wipes out your checking account. The points add up, just don't overspend. It's not hard to pay it off every month.
I use my credit card for everything. Points add up. And it's safer than using my debit card.
Exactly. I charge everything. My flight to Vegas in march was basically free. And I almost have another earned. I pay my card off every month.
Yep. I like paying just one monthly bill. It actually helps me track my spending.
That too. We only get paid once a month. So the day after pay day, I pay the bill and don't have to worry about it again.
I really need to get an airline CC and do this. All I would have to do is send a payment each week for the total of my receipts. And then I could fly free to see DS, all the time!
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Sometimes you're the windshield, and sometimes you're the bug.
Revolving credit? Forget is. I also pay all at one time when I get the bill for the month. And do not charge but pay cash for anything under $20.00 (the equivalent being 2000 yen or so).
I would rather pay for whatever and not owe anything.
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A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
My ex ran up a huge debt on the one card we had and left me to pay it.
Took longer to pay that off than we were married.
Never again.
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A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
My ex ran up a huge debt on the one card we had and left me to pay it.
Took longer to pay that off than we were married.
Never again.
Nice guy! At least I was paying off my own debt.
Yeah, he was a special kind of something, that's for sure.
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A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
I haven't carried cash in over 10 years. I find I really don't need it anymore. When I have it I usually give it to the kids - who don't really like it either but they take it.
We put everything on either our SouthWest credit card for the miles or our AmEx for the points/protections they offer. AmEx refunds baggage fees so I use it for that each time I fly.
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Out of all the lies I have told, "just kidding" is my favorite !
