Do you have any credit cards? If you do have one or more credit cards, how are you using your credit card(s)?
This is a hard lesson for many to learn as there are so many people unfortunately in debt at this time; however, if you use a credit card correctly, and only charge what you can afford to pay back within the billing cycle (typically 30 days), you might have an opportunity to earn a small bit of cash back, frequent flyer miles, points, etc… on a monthly basis, on a credit card. Admittedly, a few dollars here or there or a few points here or there, by no means is it going to change your financial situation overnight; however, it might help you to start to establish a better outlook and improve your relationship with your money. These small wins/small victories may help you to establish good spending habits and you may start to manage your money more carefully each and every month.
Personally, this was a very hard and long lesson to learn and it has taken many, many years to finally understand this lesson and start to use a credit card the way that it is being described here to earn a small amount of cash back, some points or frequent flier miles each month, however, as mentioned here, it is only potentially worth it, if you can ensure that the balance is paid off in full within the standard billing cycle each and every month!
There are so many credit cards out there and many different companies competing for your business. When you check your mail, there are always flyers in the postal mail wanting your information and asking you to apply for a new credit card. When you check your email, there are always offers where companies are competing to gain your business and request you to open a line of credit with them.
Alternatively, there are likely many people that will move from one credit card to another, transferring balances and such with the goal to obtain a cheaper interest rate or avoid a finance charge. Is this a good option? Each person will need to make a decision if this is the right for them or not? At one point, you may have to consider, how much effort is this taking, how much of your time is this taking and is it really worth it? By transferring balances around, are you really making a positive impact on paying down your debt or just delaying the inevitable?
Ultimately, there are many people, that do not wish to have credit cards at all, and this is likely a very valid path forward and perhaps one of the best paths to ultimate financial freedom. If you have ever heard of Dave Ramsey, you are likely already aware of his thoughts on credit cards and how dumb debt is.
If you have not heard of Dave Ramsey, you at least owe it to yourself to check out his web site and review some of his great advice/financial expertise and you will quickly see that his mission is to help people get out of debt. If you are struggling with debt, at this time, please check out what Dave has to say about debt and his lessons will help to change your financial outlook for yourself and your family.
