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Credit cards are incredibly helpful at times. No one wants to be carrying $3200 or more in cash on them. Credit cards allow people to make big purchases, like cars or houses; things that almost no one can pay actual cash for. But credit cards are also dangerous for the same reason: they let us make big purchases.
Credit cards are accepted almost everywhere. Need to grab a bite for breakfast? $6 on your card. Gift for mom? $20 on your card. Fill up the car on the way home from work ($35), order pizza ($13) and call it day. Wait! You just spend $70 on your credit card. Until it’s paid off, interest will accrue. That $70 continues to grow while you sleep at night.
Be smart around your credit card. Unless you have the cash to pay it off immediately, don’t charge something to your card. Think you’re not a compulsive spender? Hide your cards for a day. Put them in a drawer and then go about like normal. See how many times you get to a register and reach for the card. You’ll be surprised.
Don’t be scared away from using credit cards; just be smart about using them. Don’t allow yourself to get trapped into extensive credit card debt like many Americans have. Being in debt denies you financial freedom. You become a slave to your credit card, constantly having to pour money into it to combat the accruing interest.
Be smart.
