I rely on credit cards but I adhere to strict rules about them. In the past I have let them get out of hand, but now I pay balances off in full each month. I put virtually everything on credit cards, even my bill, and that prevents me from overdrawing at the bank and helps me organize my finances better. I have several rewards cards and so I get cash back on my shopping. The only way that pays off, is to pay your balances off in full each month!
I think you should stop using credit card because credit cards will push you into debts. Debit cards are better than Credit cards. Since you can use bank money while using credit card, you tend to think that this is free money. However you will have to pay back with interest. Spending is more when you use credit card. However, with debit card, you have a limit on your spending
This is not to encourage the use of credit card but I have to speak from my experience. I have been using the credit card for more than 20 years and I really find it convenient. As I had posted in another thread, I am conscious of my spending and I seldom over spend so using the credit card is not a big issue. What's most convenient for me with the credit card is the worry-free shopping because when I was using cash, I would always be counting my money because it is an embarrassment to be short of cash when I have a big purchase. And I am also spared from criminals particularly the holduppers for I don't carry a big amount of cash.
To be quite honest I have never owned or used a credit card. I do have a debit card though. Credit cards in my opinion can lead to overspending and impulsive buying. If you are a person who has good self control when it comes to spending money, then I would say it is okay, but having a credit card in most cases leads one to spend more money than they should and then they end up in a lot of debt. On the other hand though, using a credit card is safer than carrying around large amounts of cash. So I would say it has its good points as well as its bad points.
Look, the whole idea of building credit is great. But, you shouldn't get a cc just because you want to build credit. Credit cards are good. Its better to owe money to some bank than to owe money to a friend. Plus, finance is something to be kept secret, and a cc helps make sure no one ever finds out how deep or shallow your pockets really are! CCs are bad if you know you can't resist buying stuff. If you have had a bad experience or even an "almost" bad experience with a credit card, don't get one. If you're married, let your spouse get one. If you really must get a card, get one that's backed up by your own savings account or something. That way you will have double the money but zero risk of overspending since the credit limit will be equivalent to the money you put in the savings account. And a line of credit is even better. But, again, it depends on whether you can handle knowing that you have thousands or hundreds of thousands of dollars in credit limit to spend. If you can't or haven't done so in the past, CC is a bad idea. For everyone else, a cc is a must. Especially if you have a family to look after and are low on an emergency fund.
Well, is a matter of preference, in my opinion. If you like the keynesian approach on economics, then you'll love to have a credit card. Of course, be sure to have enough purchasing power to guarantee household and services monthly expenditures coverage and don't be paying a mortgage, otherwise stay away from credit cards. Although credit cards can be also a fine tool for the poor to increase their wealth, since they can ask for sensible discreet credit coverage for investment, like pursuing a higher education or buying a small real state.
Yeah. I mean it simply raises the spending power manifolds for individuals. If you use it to buy groceries during your early working years or to pay for insurance or something, then a cc is fine. If you buy a few things on installments, that's fine too. But, if you burn your credit limit on things that you want instead of the things you need, then its a problem.
