Many folks believe that there are positive uses for credit cards. Example rebates and airline miles. The true fact of the matter is– responsible use of a credit card does not exist. Credit card debt is a huge problem in America.
Regardless what the credit cards marketing ploy is to get you to use their credit card is the reality is there simply isn’t a positive side to credit card usage. You will spend more if you use credit cards, even if you pay your bills on time and in full. The average family is carrying eight to eleven thousand dollars in credit card debt according to the American Bankers Association.
Cash vs. Credit Cards
When you pay for things using cash there is an emotional attachment because you can feel the money leaving you and you know that you now have less cash in your pocket. This is not true when using a credit card. A study if credit card use at McDonalds found that people spent 47% more when paying by credit cards instead of using cash.
If you are traveling or renting a car I suggest using a debit card. I do not suggest using them for daily purchase because again you do not physically see the money leaving your pocket and there is no emotional attachment. Studies show that you can reduce your spending but ten percent or more simply by using cash for your purchases instead of credit or debit cards.
Personal finances are 80% behavior. You need to stop the habits that make you spend more. You cannot build wealth with credit cards. There is a reason credit card companies are multi-billion dollar companies…and it’s because they are giving rebates and frequent flyer miles to credit card users– please do not be naive and think that you are getting something for free.
For information on debt resolutions call Total Debt Relief, Inc. at 800-627-9667 or click here to visit us online.
