Credit cards are a huge part of the American way of life, and millions of people have them. However, they can be a double-edged sword since they’re convenient, yet they also offer temptations many people have a hard time resisting. The result is a massive amount of debt.
You don’t have to be an extremist about credit cards, however, because there are options beside canceling them all and never getting another. There are some tips and suggestions for keeping your credit cards and not abusing them.
Many people like credit cards because they offer convenience. With a credit card, you can buy anything you need at the moment, even if you don’t have the actual cash to pay for it.
Another reason why people like credit cards is because it substitutes for carrying cash around. Have you ever noticed that between your credit cards and your ATM debit card you may go a week or more without actually seeing any dollar bills? So while credit cards offer convenience, they also tempt people into buying things when they don’t actually have the money to pay for it. It’s one thing to pay for a hotel room with your credit card while you’re on vacation, because you know that when you get home you’ll be able to pay it off with your next paycheck, but it’s quite another when you do it and there’s not enough money coming in to match it. That is why it’s important to see your credit card as something to be used when you need it, not something you use when you want something. That’s another way of saying that living within your means is pure common sense.
For more understanding about the usage of credit cards and how it affects your financial life, read “How Using Credit Cards Unwisely Can Decrease Your Credit Score.”