I want to talk today about Credit Cards. Yes, this highly controversial subject, most people either love or hate them and I want to share my views on credit cards with you.
My parents have always handled credit cards responsibly, meaning they never let a balance carry over month to month if they bought something with it. They taught me debt is bad to have, and that if you don’t have the money to pay it off when you buy it; you shouldn’t buy it, even with a credit card. Their main reason for using a credit card was for when they made online purchases. To this day I never buy anything if I don’t have the full amount in cash to buy it! I HATE debt so why do I want something that will roll over each month with a nasty interest rate attached? Plus is that TV or new outfit worth it? I personally don’t think so.
I do have 2 credit cards, both Store cards I keep ONLY because I can’t use their store coupons without them, but I can pay these cards off right at the counter as soon as I buy it with the cash I have on me, so basically it’s an extra 2 minutes to get 55% off an item, and to me it’s worth the savings.
But unfortunately, most people can’t handle a credit card responsibly, just look at how much consumer debt we have as a nation and most of it is credit card debt. People buy and buy and buy and transfer debts onto other credit cards and it just digs a horribly deep hole they eventually have to climb out of. America has an “entitlement” problem, especially with my generation, they feel like they work hard and deserve it right now! I don’t agree.
This is why I believe if you have credit card spending problems, you need to CUT UP YOUR CARDS! Yes that’s right I’m channeling Dave Ramsey right now. If you can’t handle it, the first thing to do is get the option to use it away from you. Then to pay off what debt you already have, and then to NEVER EVER get one of those stinking things again! You can do so much with cash and debit cards and debit cards have the same protection as credit cards too.
Remember a credit score is a measure of your debt, not your wealth. So I use them, but they are a once or twice a year used thing, otherwise we use cash and debit cards.