Shopping online, credit cards, and compulsive spending.

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I'm in a bit of a dilemma.
I am an avid fan of online shopping. There is stuff online that is simply not available anywhere in a regular store. However, I'm scared about getting a credit card. I know that a lot of aspies simply don't have a credit card because it may lead to compulsive spending. I'm scared that once I start buying, I will not be able to stop. Is there a way to put a limit on your credit card? If you have a credit card, how do you manage your spending?

hi, MathGirl.

a low credit limit is able to be set for a credit card. one should certainly spend less than (or set the limit less than) your disposable income would allow you to pay off within the interest free period, this period may vary anywhere up of 55 days (in australia).

or

...there is the option to get a debit card that is linked to a savings or cheque account. a debit card may be used like a credit card but it will only allow you to spend what you have, this will provide strong encouragement to budget.

credit cards are all about self control and being aware of what and how you spend, you can only spend what you can afford to pay back. it is the bank's money that you are spending and if you are late in repayment you will be charged interest on the outstanding amount. defaulting on your credit card typically has greater implications than incurring additional bank charges... it will affect your credit rating and may result in you being pursued by debt collectors.

please bear in mind that a debit or credit card may also carry with it an annual fee and a separate set of account keeping fees. it is recommended to check which financial institution offers the solution that suits you and your budget best. don't be afraid to shop around, banks should have to compete for your business and not the other way around.

i have had a credit card for the last 11 years with no problems, i always pay my balance owing well before the interest free period is over... i have managed this only through budgeting; being aware of my income, being aware of my standing commitments (food, accommodation, utilities, medical insurance), maintaining a savings plan for emergencies and planned purchases (new eye glasses or replacement household appliances etc.), and allowing a portion of my income as play money (disposable income). debit cards were not available in australia when i first applied for a credit card and i guess i just stuck with what i have...

If you have a checking account to connect behind it, you might consider a PayPal account and the debit card available there. I use those a lot ... and I am not posting this to promote PayPal. This is simply something that can work well for anyone.

You can transfer money into the account, then either use the account for online purchases or use the debit card in person ... and you can do all of that without going into debt. But if you wish, you can also add credit to the account without having to pay any fees, and there are even times I get "cash back" for using my account.

i dont know because i've never owned a credit card. i've never even recived offers in the mail for one and it makes me feel left out! but i gotta say, im almost certain cc are nothing but trouble, oh shure its easy to spend money. its even eaiser if you cant see it

I have a debit card with an arranged overdraft facility. My bank has offered me credit cards but I refuse them.

I spend a lot of money on retro computers and video games. A debit card allows me to buy stuff online while making sure I never borrow more than I can afford to pay back.

Yep....a debit card seems to be just as universally accepted as a credit card. I use a debit card a lot on the Web, also PayPal. Can't get into debt with those two, as far as I know, though you might have to instruct the bank NOT to put an overdraft agreement onto your debit card.

Of course nothing can stop you spending all your money on the Web, apart from your own self-discipline. It helps to have an up-to-date idea of your current balance - very easy if you have online access to your statements. You might also do well to make sure you have a reasonable grasp of when your utility bills are due and how much they might be, if you don't already have that info at your fingertips.

If you're really scared of overspending, you could keep a second account for the essentials, and just keep your extra, disposable money in the card account. That way, you can't get into too much trouble until you find yourself shuttling further money into the card account, which should serve as a good warning bell.

If you don't have a credit card, you may as well kiss goodbye your ability to rent an apartment, lease a car, or mortgage a house - these are all generally dependent on years of building up a credit score.

They are a great thing to have. Like others have said, self-control is key.

Strange - in the UK I'm sure it's quite possible to do those things without having ever had a credit card. My son has rented 2 places and has just had a mortgage approved to buy his own house, and he's never had a CC. I guess by leasing a car you mean borrowing money to buy one - I wouldn't know about that. But only the other week, a financial adviser at my bank told me that I've got a perfect credit rating (without my ever having a CC), so I guess if I wanted to buy a car on credit, they'd probably let me. I did hear once that some institutions would reject applicants who had never borrowed, on the grounds that they hadn't demonstrated their ability to service a loan responsibly, but more recently they were barely testing their clients' creditworthiness at all, and weren't even verifying their stated income, which of course led to the credit crunch.

Can anybody explain what's the advantage of a credit card? If I understand it right, they allow you to borrow as long as you pay it back within x days. But apart from the "interest-grabbing" scam I mentioned before, what's the point? I suppose it could be used as a "bridging loan" until the next pay day, but how many people regularly run their finances down so near to the breadline that they really need one? Isn't that a sign of poor money management and self-control in the first place?

To be totally honest, I think that you are better off with a debit card, because once you have a credit card, you would eventually have to pay the money back and that can be such a pain.... because you practically using somebody else's money.

With a debit card, you practically own the money that is in that account so there for, you are safe and on top of that, shopping online would still work the same way too and much more suitable for you...

But online shopping is risky too, so always make sure you know where to go when you are shopping because they can be indenty theft there and can actually steal alot of money without you realizing.... So also, don't forget to sign up for Paypal.... Its a better service for you, its quick and also secure for you which I've seem to have realized now

features available to a cardholder will vary depending on the card and the financial institution. the following is a listing of some of the features that i have access to:

acceptance at over 29 million locations.

awards points for every dollar spent - bonus partners yield higher point awards for every dollar spent.

points are able to be redeemed for a wide variety of gift cards, merchandise, and travel (able to turn awards points into a holiday).

24h personal concierge service.

emergency travel assistance - round the clock assistance on medical services, referrals to doctors, lawyers or interpreters and help with emergency ticket replacement.

complimentary international travel insurance - comprehensive overseas insurance, free of charge, for yourself, your spouse and your dependent children for return trips of up to 12 months.

commission-free travellers cheques.

interstate flight inconvenience insurance - coverage for trip cancellations, flight delays and lost and stolen luggage.

discounts on car rentals, upgrades at hotel and resort stays, unique travel and entertainment opportunities, and exclusive offers.

replacement of most lost, damaged or stolen items bought with the credit card within 90 days of purchase.

extended warranty insurance for local or overseas purchases - extension on top of the normal manufacturer's warranty by up to one year.

secure online shopping, a guarantee that you will never be held liable for the unauthorised use of your credit card.

if you make a purchase and then see it advertised in print at a lower price, you can claim back the difference within 21 days of your purchase.

up to 55 days interest free on purchases.



yes, that's the idea. after the interest free period has expired you will be charged interest on any outstanding amount and, as a continuation of that, on any interest that may have accrued.



i use my credit card for all purchases and the balance is paid in entirety every month. i have very few "cash" transactions as such and i do typically not carry much physical money. the cash that i have sitting in an account stays there, earning deposit interest, while i spend the bank's money - which i then repay when i receive my monthly salary.

doing this i minimise transaction charges associated with moving money around, i maximise my deposit interest earnings, and i earn award points using my credit card to pay for day to day items, bills, etc.



yes, though i think that is the incorrect approach.

if an individual wanted to use a credit card as a "bridging loan" they could... in most cases this would only help to dig a deeper hole. in any case, if someone is spending beyond their means then there is an urgent need for them to review their financial management strategy. credit cards can enable financial mismanagement - but they are not responsible for it.

a credit card used with care, in a responsible fashion, is a very handy resource... a resource that works well for me anyway. if an individual is bent on spending all they have, and getting themselves into financial trouble, they will probably do it either with or without a credit card at their disposal.

My parents got me a debit card when I was 15 or 16. Ever since then I've only used it. If I take cash out at an ATM, even though I have it with me, I think that money has disappeared forever and is "already spent." I'm pretty good about keeping track of the money, too. I have three debit cards now and one credit card that I used when I was about 18 but it's had a balance of zero for about a year and I don't usually touch it.

OK....as I don't travel much, I didn't notice those things before.


Ok that's essentially the same as the scam I mentioned - just not so blatant I think that would be my ONLY use for interest-free credit.

Interesting......I heard recently that a lot of UK mortgage repayments are now being made on credit cards. They think it's a sign that the recession has made a lot of people do this out of desperation, and that there will soon be a day of reckoning.........glad it's not me

i have a credit card only for emergencies.
i have 3 accounts.

1.an "e-saver" account which pays 5.25% interest (paid monthly). i can not use my atm card at an atm to access it. also it is not valid for "eftpos" transactions.

2. an "everyday" account that my salary gets paid into which is accessible from any atm. it has 0% interest no matter how much i have in it.

3 a credit account which is also accessible by atm's and eftpos (electronic finance transfer point of sale)

i immediately transfer my salary into my e-saver account (on internet banking) and leave my everyday account with just enough money in it so i can buy stuff that i need.

occasionally, i underestimate how much i will need when i go interstate, and i use up what is in my everyday account. it is only then that i will use the credit account.

then when i get home back to the internet, i transfer money to my credit account to return it's balance to "zero owing".

i would never use money from my credit account unless it is an emergency or i need to buy something online. then i pay the money from another account that has my real money in it into the credit card account so it is in zero balance.

be wise and never use money you do not have available in your real account to cover credit purchases.

That's a very good rate - which bank is that? And what country?


In the UK, Lloyds do a "vantage" current account that pays 4% if the balance is kept between £5000 and £7000.

Credit cards are a pain in the arse.
My family doesn't own credit cards
because of most of the reasons already said.

I think my mom has a debit card, issued by her work,
but doesn't use it. Personally, I see debit cards
as credit cards in disguise.

Speaking of compulsive spending...

...I, for a while now, have a habit of frequenting banks
to make withdrawals on a weekly basis.

I have established a technique that is
working, but not as well as I want it to.
The technique is to go to three different
locations of the same bank and withdraw money.
I am becoming really sick of this
and I think the bank tellers know this too.

Beginning in February, I will establish an
experiment that will make me NOT
withdraw money. This experiment will go for 63 days.