Who says credit cards are bad? They aren’t. I know most of you, especially those with hefty credit card debt burdens, would never agree since a vast community of people considers it to be one of the evils of society, something that needs to be avoided at all costs.
Sky high-interest rate charges could be accumulated, resulting in serious debt that seems almost impossible to pay back.
All of this may be true regarding credit cards and the industry as a whole, but it’s entirely upon our discretion to use them. But there is a question that creeps up in my mind (which I know I shouldn’t be asking here at a blog, but still). Are credit cards that bad?
Nearly 500 million credit cards are part of the economy in the US only, according to recent numbers. There is no rocket science believing that credit cards are everywhere in our culture and lifestyle after seeing all those numbers.
For some of us, credit cards’ prevalence makes it easy for us to indulge in our spending addiction. But they need to be used appropriately, and eventually, the best credit cards can help you manage your finances.
As per the continuous oppression in our interest rate climate, there is no need to part with your cash before you have to? If you can wait for a month and use your credit card instead, why spend the money sitting in your bank account?
Your cash could work for you another month at the bank through the use of credit cards, and guess what? You’ll still stay on budget through proper management.
Free stuff can’t be wrong:
One should commonly look for things that help save money or have free money while trying to live frugally. I know it’s hard to find free swag, but it is indeed there if you look for it diligently. Credit cards offer rewards up for grabs.
Not all credit cards offer rewards but typing “credit card rewards” in the Google search bar would greatly help. Read the reviews of those credit cards offering rewards and opt for the most popular one.
There are point redemption programs, some credit cards also offering cashback, rewards on travel, to gift cards. People get enticed by these offers by the credit card company, and eventually, they end up having more customers and keep their business.
The best of all is the one that redeems point on gift cards allowing date nights or doing something amusing without spending one’s own money. These rewards are only for credit card users, and people using cash instead of the card will never avail of this facility.
Get your card processed:
Credit card processing is essential in case of a high debt burden, and it helps one in paying a bit less, which would never be possible if you negotiate with your card provider personally. Many companies charge a minimum fee and get your card processed, and you don’t need to worry about your card anymore.
But that certainly not mean that you go crazy and start using a credit card for absolutely everything with the intention of not paying for it all. It’s just the facility for those who are too busy and want to live a frugal life and avoid credit card debt burden; credit card processors would help you in doing so.
Analyze your spending habits:
Being frugal and still using credit cards is challenging to master, but the key to this strategy is to spend only what money you know you have.
There is nothing magical about that, and it’s as simple as it sounds. If you are strangled in credit card debt and have made some not-so-required purchases through your credit card, you should probably work on getting out of all of that and avoiding the use of credit cards for a while.
Similarly, for a student in their college life, if they are already in student loan debt, that is undoubtedly not manageable and becoming an impending crisis; who should avoid the use of credit cards. But if you do budgeting and stick to it, then there is no reason why you can’t be using credit cards.
There is another side to it, which reveals that one’s credit card usage shows one commitment to managing finances. If a person is spending money, he must know he has, which makes him much disciplined in his finances.
But if the money is spent on buying things used for maintaining a lifestyle, then the use of credit cards for those with a limited resource can never be a good option. So if it’s a challenge for you to live within your means, then the use of credit cards would make it even more difficult.
Credit cards are good only when used wisely. What’s your take on that good, bad, really bad?