I have blogged about credit card use here (Credit Cards & Frugal Living) and here (Damage Control for Your Credit Score).
Credit Cards are like wine: both are meant to be used in moderation.
Let me explain: medical experts say that 1 glass of wine is good for one's health. But when one binges on wine, one becomes an alcoholic and needs to stay away from wine as far as possible. This is because the ill effects of alcoholism far outweigh the healthy benefits of wine.
Ditto for credit card use. As I explained in my earlier blog post, Credit Cards & Frugal Living, one should use credit cards judiciously, spending only what one is able to afford and paying off the balance in full at the end of each monthly billing cycle.
In other words, don't binge on credit card and end up addicted to easy credit. If you can't control your credit card use, then take a pair of scissors and cut up all your credit cards and close your accounts, just as a recovering alcoholic has to stay away from wine, no matter how healthy a single glass can be.
But if you are able to use credit cards judiciously, then you can reap the benefits of leveraging your monthly float between spending and paying, as well as earning rewards (cash back, rebates, statement credit, etc.) for using your credit cards.
Read the other entries in my Frugal Living Tips Series.
Credit Cards are like wine: both are meant to be used in moderation.
Let me explain: medical experts say that 1 glass of wine is good for one's health. But when one binges on wine, one becomes an alcoholic and needs to stay away from wine as far as possible. This is because the ill effects of alcoholism far outweigh the healthy benefits of wine.
Ditto for credit card use. As I explained in my earlier blog post, Credit Cards & Frugal Living, one should use credit cards judiciously, spending only what one is able to afford and paying off the balance in full at the end of each monthly billing cycle.
In other words, don't binge on credit card and end up addicted to easy credit. If you can't control your credit card use, then take a pair of scissors and cut up all your credit cards and close your accounts, just as a recovering alcoholic has to stay away from wine, no matter how healthy a single glass can be.
But if you are able to use credit cards judiciously, then you can reap the benefits of leveraging your monthly float between spending and paying, as well as earning rewards (cash back, rebates, statement credit, etc.) for using your credit cards.
Read the other entries in my Frugal Living Tips Series.
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