This may surprise you but I carry a credit card, never fail to pay off my balance at the end of the month or pay late fees. For that, Ann and I take advantage of the convenience the card allows, earn airline miles and enjoy 30 days of interest free money. I have been asked, “Why do you endorse credit cards? I was taught that they are evil and we should cut them up in little pieces!”
Credit cards are a form of currency. It is true that there are horror stories of unsuspecting folks who get trapped in a cycle of debt that is near impossible to escape. The problem is not the card: it is using one if you are ignorant of the contract you have signed or you lack self-control. If either or both of those conditions are challenges you face, don’t use a credit card, use cash only.
However, 53% of folks 30 years or older who carry a credit card pay off their balance in full each month. That means millions of people are likely doing exactly what I do – enjoying the free loan, gaining rewards and using their card responsibly.
Here’s my advice.
Carry only 1 credit card. Pick a card with an excellent rewards program.
Learn more about all the credit card options at bankrate.com or creditcards.com
Never ever charge an amount on your credit card greater than what you will be able to pay off in full at the end of the month.
If you ever fail to pay off the balance, stop using the credit card until you do!
Don’t consider your credit card a fall back for emergencies. Save cash for emergencies. This way, you will stay out of credit card traps.
