More on credit cards

I will keep this short and to the point. Credit card use, similar to people who are on a diet, needs to be done in moderation. Credit cards are not bad or good, it is all in how you use them. Many people automatically jump to the conclusion that they are bad because so many people have issues with credit card debt. Is that because credit cards are bad? No, people don’t have restraint when using them. If they maintained a healthy balance they wouldn’t be in debt with credit cards.


When looking at your personnal finances and accumulating wealth, credit cards can have a place. However credit cards do not equal wealth. Credit cards can help when in a pinch but you have to be able to pay it off right away. Unfortunately this is what most people do not do and instead go down the road of perpetual debt. The real place they have is in some of the rewards that they offer, which can be points, air mail or cash back. The best of these is likely cash back because it reduces your monthly expenditures. There are some ways to really ramp this up and I am sure there are good articles out there that can help you down that road. However I have never done this.


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