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Dave Ramsey is a big proponent of saying “don’t use credit cards at all.”
Now, I don’t necessarily agree with not using a credit card at all, but more so about using a credit card correctly. But I do believe he suggests not using cards at all because he’s seen how difficult they may be to handle responsibly.
We can compare credit card usage to drinking. There’s nothing wrong with having a drink or two, but there is something very wrong with having many drinks and driving home afterward.
The consequences for using credit cards if you don’t have the discipline and control are pretty finally severe as well.
On the other hand, some financial gurus suggest using a credit card for every day purchases, or have your utilities automatically paid with your credit card. This way, you can reap the benefits (points, cash back) on the card, but you pay off the balance each month so you’re not paying interest on it.
Use the card, pay off the transaction right away, and collect the points or cash rebate. If you were going to buy it anyway, you might as well gain something else from the transaction.
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Image and article originally from thebrownreport.com. Read the original article here.