Credit Cards

For the last ~3 years, I have been preaching about not using credit cards. It mainly started because of a gradual increase in charges and balances and listening to Dave Ramsey’s podcast.

My arguments:

It’s playing with financial fire.  I am using credit to purchase items.

Some anecdotal study says that you spend ~15% more on purchases, so think about those savings! Per $1,000, that’s $150 more I theoretically overspent.

They make the bulk of their money off of people who can’t pay off their monthly charges (interest and finance charges).  So, why participate in that kind of financial system.

But, I’ve always kept a credit card:

I am scared to close all credit, unsure why, but I feel it’s a safety net? Even if I don’t use it.

When traveling, it makes renting cars easier and in some cases, it’s needed/required.

But, lately a lot of people are saying, “why not charge your monthly fixed essential charges like cable, phone, insurance, etc… as long as you pay it off every month.” And also listening to a Crown radio spot, they mentioned the use of credit cards, as long as it is done responsibly.

I think to myself, I could do that… The temptation is strong.

But, I must stay strong. I must stay resolute. I must keep to my convictions.

I’ll keep a credit card open, but I won’t charge anything on it.