Ah, credit cards. I got my first one when I was 20 years old. I am going to first say that I am pretty good with saving my money and budgeting. I’ve never been in debt nor owed money to anyone.
When I received my first credit card, things changed up a little bit.
When I first got my credit card, I went into it with the right mindset.
I only got one because I wanted to build my credit, that was solely the only reason. However, plans changed when I received one. I started to make excuses to buy certain things and it happened A LOT.
My bill eventually sky rocketed and it was crazy how fast things were adding up. Whenever my debit card/bank account was a bit low, I would use my credit card. It started to feel like free money and it definitely isn’t, it’s quite the opposite. Not only was I going to pay back what I owed, I also had to pay interest. Ah, that lovely interest that acquires every month.
For me personally, I think credit cards simply lead to debt.
No matter what I do, I look at it as free money. I try my hardest not to, even when I owe a bit of money. So what do I do now? I simply store my credit card at home in a place that isn’t easily visible.
When I’m out at stores and only have my debit card, I’m much less likely to buy anything. I pretty much won’t buy anything unless I absolutely need it, which is very unlikely. We all have seen frozen credit cards in the movies, I however have never done that.
I don’t think it’s too necessary for my case, but I know for others it is.
I only have 1 credit card.
I know of many people that have several, and I don’t think it’s a bad idea unless you can’t handle your credit cards correctly. You can build up many points and get tons of free things with credit cards.
So for now, I will keep my one credit card, and overtime I am slowly learning how to use it correctly. I try to only spend a small amount each month and pay it off immediately after to build up my credit.
If you are just starting out with your first credit card, definitely get the smallest amount possible. Also, throw away all of the junk mail you get from all of the different credit card companies. Only stick with one for as long as you can. I don’t think it’s necessary to have more than one.
I recently saw a lady on the news that has absolutely no credit cards, I just get confused on how she purchases homes/cars/etc?
What do you think? Do credit cards work for you, or do they just lead to more debt?