When It Pays To Use Credit Cards

Getting a credit card isn’t something you want to rush into. Having a credit card has a number of advantages, but at the same time, it is something to be used wisely. 

Creating Solid Financial Habits

Firstly I want to make sure everyone knows that one of the principles of financial planning is to avoid debt at all costs. In some cases it is ok to use credit cards as a tool for saving money and expanding your purchasing power. 

Cash is King!

Cash forces you to be smarter with money because you can instantly see it leaving you.  Credit cards separate us from that emotional tie to money that hurts when we buy something. 

The Argument For Debit Cards

Debit cards are much better than credit but they also remove us from the pain of spending.  Many debit cards also have overdraft protection which goes to a credit card in the event you overspend. 

If I used cash, I wouldn’t overspend on my grocery bill because I would know when my cash was gone, my spending would stop.  Using credit takes the emotion out of my purchases which is why I typically overspend on food. 

Credit and Overspending

I am not against using credit cards, I just want to make sure you fully understand the power of them before you use them.  Reward programs are beneficial only if you do not overspend when you use credit cards. 

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