You filled out your first credit card application with the idea that you would only use it for emergencies. But when you first get a credit card, your emergencies change. Now on your way home you decide to stop at McDonald’s for dinner but realize you have no cash, so you put it on your credit card. You and a friend are going to the mall just to hang out when you see something you really like. You don’t have any cash, but you have your card, so you swipe it. This is no problem for disciplined people who already have the money sitting in the bank waiting for the bill to come. But the idea of “buy now and pay later” is just not all it’s cracked up to be.
Since more than ninety-five percent of the United States does not have the discipline required to have a credit card, we should avoid credit card companies altogether. They are not interested in you as a customer. They want you to spend more than you have so that you cannot pay the balance all at once, thus causing your account to accumulate interest. To them, you buying now and paying later in nine out of ten cases means they are making money off of you. Credit card companies rely on your inability to pay your bill in full and on time. And as easy as it is to buy things you cannot afford, you will increase the temptation to go FAR beyond your means in the process.
Spending your own money is not as much fun as spending someone else’s, I know. But that is just the point. You will spend less money if it is yours than if you “buy now and pay later.” It’s harder to see your hard earned cash go out the window, but because of that, it will cause you to think twice about your “emergencies.”
In the case that you really do need money for real emergencies, here is a thoughttry saving every penny you can to save a thousand dollars as quickly as you can and putting it into a separate checking account that allows you to have an ATM/Debit card. Don’t touch the money unless you really DO need it for a REAL emergency. Having a pizza craving at midnight DOES NOT COUNT. I’m talking about your car breaking down and you need a tow, you get sick and need to go to the doctor and get medicine, etc. Emergencies are the unforeseen things that happen that will incur some sort of bill at the end of the day. If you already have saved some emergency money and put it in the bank, then you will find it quite pleasing to never have to think about those emergencies again except on your bank statement, rather than having to get a bill later after you have already long forgotten about the incident.
Bottom line: Credit Cards get people into trouble. Stay away from them and stick to the Debit Card. It will save you a lot of money in interest, and a lot of money that you would spend on Advil and caffeine pills to relieve your headaches and fatigue from all the tossing and turning you did thinking about all that you owe in debts.