I’ve read a lot of budgeting posts which say that credit cards are bad, and that cash is the only way to go.
I disagree. I use my credit card to budget for the month, and I get frequent flyer points as I go.
I always pay my credit card off in full though when it is due. And I think that’s where the problem lies. If you only pay off the minimum, you can get into serious debt.
I buy everything on credit. Even my $4 coffee in the morning. I’ve even been known to put $1.50 on my credit card.
I have a limit each month and if I’m getting close to that limit, I wait for the next month before making any purchases that can be put off.
By putting things on credit, I can keep my money in the bank for an extra month, earning me interest. Better in my pocket than in the bank’s!
And because I always pay off my card every month I have a really good credit rating, which meant I could get a mortgage without any problems. Credit cards aren’t all bad.