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Why get rid of your credit cards? As long as you pay the balances in full every month, a modest selection of credit cards can easily lower your expenses by 3%,

Why get rid of your credit cards? As long as you pay the balances in full every month, a modest selection of credit cards can easily lower your expenses by 3%, if not more. You can also accumulate a fair bit of free spending by trading out old cards for new ones with signing bonuses. Think of it like a free, untaxed $3-4,000 bump in salary.

lsc 14y ago
untaxed? really? I thought you were supposed to report and pay taxes on all income.
- roel_v 14y ago
  Discounts are not income.
  - lsc 14y ago
    hm. Interesting argument against the 'cash back' cards. The context I've heard of people getting in trouble with this is when they used the card for business purchases and then used the discounts for personal purchases.
bdunbar 14y ago
Why get rid of your credit cards? As long as you pay the balances in full every month, a modest selection of credit cards can easily lower your expenses by 3%, if not more. Why did I? Because it was too easy to use credit, not pay the balance in full. The debt built up. Things got out of hand. And because I really did not like dealing with the credit card folk, even when I was in their good graces. Too much complexity.