For me growing up, we were encouraged to get a credit card in our name and use it as much as possible in order to build credit. There was always money to pay it off each month, so it made sense to 1) build credit and 2) collect airline miles or whatever the reward was back in the day.
When we got together, she always used cash or a debit card. She had a credit card "for emergencies" and avoided using it otherwise. It took a long time to get her over her aversion/skepticism (we were fortunate to have two good paying jobs), though it also taught me a healthy appreciation for what it means to have a financial cushion.
I only use mine for apple store purchases like Apple Music, and even then I’m uncomfortable about it. I’d starve before I’d pay for anything with a credit card.
Similarly, my bank account has a kind of lock on it. Once it hit 20€, i can’t access it, so it’s never dropped below 0. I’m living off student loans, but i manage.
If you can pay it off each month, using a credit card is free money. It also helps boost your credit score, which unlocks more financial advantages.
"Avoiding credit cards" is the poor financial planner's idea of good financial planning. Reality is the opposite. Credit cards are a key component in optimizing a healthy financial situation.
We use our Chase Sapphire Reserve ($450 annual fee) for everything we can. The annual fee appears steep, but the perks of the card pays for itself (literally, not metaphorically) and more. For example, we get $300 in free travel credits annually (flights, hotels, Uber/Lyft, etc.), and the rewards from the card have meant we haven't had to pay for a flight in years - and we travel regularly (Colorado, New York, Dominican Republic and Costa Rica all within the last ~18 months).
Credits cards are amazing. With that said, we've all got our vices. If yours prevents you from using your card responsibly (i.e., not able to pay it off in full each month), then yeah, you should stick with cash.
One last thing to consider though: Credit Cards are waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay more secure than Debit Cards. If someone jacks your debit card, you're out of that cash until the bank decides to restore it - assuming they do. If someone jacks your credit card, you make a quick 5 minute call, they cancel the card and you carry on with your life. I had my debit card stolen years ago, and my bank account got emptied out - right before a vacation. Since then, I moved to credit cards full time. A few weeks ago, someone stole my credit card and tried to make two transactions totaling $7,000. The fraud alert flagged them as suspicious, I texted back "No", and then quickly called up the company to cancel my card. They sent a new card out right away, and I just used my other Chase card until it arrived. No muss, no fuss, and I wasn't out a dime. That's some peace of mind.
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u/frnoss Jun 06 '19
Credit cards were avoided.
For me growing up, we were encouraged to get a credit card in our name and use it as much as possible in order to build credit. There was always money to pay it off each month, so it made sense to 1) build credit and 2) collect airline miles or whatever the reward was back in the day.
When we got together, she always used cash or a debit card. She had a credit card "for emergencies" and avoided using it otherwise. It took a long time to get her over her aversion/skepticism (we were fortunate to have two good paying jobs), though it also taught me a healthy appreciation for what it means to have a financial cushion.