Monday’s Money Saving Tip: Is it wise to use a credit card?
I think you know the answer to this before I even keep going. This all depends on the individual. For the MAJORITY, 60% to be exact, having a credit card is NOT wise. CardTrak says 60% don’t pay off their credit cards every month. The other 40% I wouldn’t even say it’s safe to have, but they have a bit more will power. The reason is, a credit card always poses the threatful mindset that you can get what you want now and pay it later when you might have the money! And statistics show you spend more if you use a credit card.
It really upsets me that credit card companies even exist. You might say, “well we wouldn’t be able to buy a house or car if it weren’t for credit card companies.” WRONG! You surprisingly do not need a cc to get loans. You just have to dig a little deeper to find the companies to support you. Now if you’re in debt up to your ears, you might not qualify under these companies, but then again, should you really be borrowing anyMORE money? Don’t you wonder why cc companies work hard to get your business? They win, you lose!
You might be wondering if we use a credit card or not, and did we while paying off debt? Yes, we do. BUT we are part of that 40% of people who pay the card off every month. Plus I’m married to someone who literally vomits at the thought of debt, therefore he would sell something before paying interest on a credit card.
We actually just earned $1,000 from points earned with our credit card, but if we take it out we owe taxes on it at the end of the year as misc. income. Ryan said we had to spend a lot to get that money, so it’s really not even a bonus. But that’s how those companies lure you in also.
So I asked Ryan why we use one if statistically it’s not good, even if we do pay it off each month. He said “I’ve just always used one and I don’t like carrying cash.” Haha…ok. It’s easier for us to track and manage our money all in one account, but if you are in lots of debt and are looking at a way out, trying using a cash system for your purchases. At least for purchases you make often so when you’re out, you’re out!
Bottom line: Why would you pay someone to use your own money? If it’s not a house, you should not be borrowing money! And like I said above, you don’t need a credit card for a house.
Bonus MST I realized this past weekend: This is specifically for moms who spend a lot on their child – Don’t go INSIDE the baby store. This can be applied to anyone and any store. Plan your days to shop, instead of popping in to see what they have. Ha – I’ve done that a lot and always seem to find something I just HAVE to have. I mean, it’s for the baby, so I must get it!
These are simple money saving tips, but nonetheless! Go save some money and spend wisely!