Oh, credit cards, how I love you and dislike you all at the same time. I don’t like the fact that so many people end up with thousands of dollars of credit card debt every year. I like the convenience and the cashback or points that I gain by using our credit cards. I like that I can build and maintain some of my good credit score by using credit cards. Yes, I believe it helps to have a good credit score because there are lots and lots of people who will never be able to pay cash for many of their large/expensive purchases.
Use a credit card responsibly by paying the balance off in full every single month
I happen to love using our Scheels credit card because we get points back and then gift cards to Scheels that we use to “purchase” a lot of our sports gear and outdoor winter gear. In the last 1.5 years, we’ve received $750 worth of gift cards from using our credit cards for our everyday purchases.
One piece of advice my parents always gave me growing up when it came to money management was that it is ok to use credit cards, but you need to pay them off in full every month. We needed to be responsible with our credit cards and not spend more money than we were making. I’ve had a credit card since I was in college, and I have always paid off my balance in full every single month.
I do not believe that having a credit card is terrible and that you should only use a debit card or cash. As long as you can use your credit card and you pay off the balance in full every single month it is ok to use. However, it is so easy to purchase something with a credit card with good intentions of paying the balance off that month and then life happens, and something comes up and you aren’t able to pay off the balance. This can lead to you paying more money for that item because of the high-interest rates attached to credit cards, your credit score can go down, and you end up feeling stressed out because you can’t pay your credit card bill.
I want you to make sure you have an emergency savings fund in place. This way if something does come up in life, like an emergency, hopefully, you have enough money in your emergency fund (savings account) to pay for that and you don’t have to put that emergency on a credit card.
Make sure you have an Emergency Fund in place, even while in debt
If you have credit card debt now or find yourself in credit card debt, it is important to pay it off as soon as possible. Most credit cards have very high-interest rates, between 17-28%. This is HUGE. When you do not pay the balance off your credit cards in full every month, you are throwing your money away to the credit card companies, which can be A LOT of money.
I suggest getting on a budget and creating a plan to pay off your credit card debt as soon as possible. Financial coaching can help with credit card debt by working with you to develop a budget + plan along with goals to make sure you meet your financial and life goals.
Hiring a Financial Coach (Money Coach) will help you build your confidence to meet your life and money goals faster
You can check out my 1:1 Money coaching program at Jesswaynecoaching.com
The important thing is to use credit cards responsibly. Pay off your credit card debt asap. Don’t use a credit card if you tend to overspend. Ask yourself if something you are thinking of buying is a “want” or a “need”. If it is a need go ahead and buy it, but only if it is indeed a need. If it is a want, wait at least 24 hours before purchasing the item. Create a budget and stick to it.
