Most people own a credit card these days, but is that a good decision? While many financial gurus say it’s okay to own at least one credit card, popular radio show host and author, Dave Ramsey, will tell you it’s not a good idea. Here are some of the reasons why:
- Often the spending temptation is too great for people. They spend recklessly without giving any thought to the consequences of credit card debt.
- Credit card companies entice people to spend more and do little to help people who get into debt trouble.
- It’s well – known that you’ll spend more with a credit card than you would with cash or even a debit card if you use it as your primary spending method.
My personal opinion is that it’s okay to own a credit card. However, I don’t recommend owning more than one card. Overall, I don’t think it’s the credit card companies that get people into debt, or financial trouble, but the lack of managing money wisely. It’s important to learn self control and to follow a budget when making spending decisions. A credit card can simply be another financial tool that can provide some conveniences when used wisely.
Credit Card Spending Tips
By following these credit card spending tips you’ll avoid credit card debt and benefit from some conveniences and rewards offered by credit card companies.
- Keep in mind, you’re likely to spend more with a credit card on common items such as groceries, entertainment, etc., especially if it’s your primary method for spending.
- Always follow a budget, especially when you use a credit card for some of your expenses.
- Consider using a credit card for only certain budget categories. Pay with a debit card or cash with the rest.
- You should always pay off a credit card at the end of each month.
- Don’t open a credit card if you’re already in debt or having difficulty controlling your spending. You know who you are!
- Use a credit card for convenience, reward points or for emergencies [in extreme cases]. Don’t use a credit card for your wants unless you have the means to pay it off that month.
