Today I was reading an article about credit cards with the usual spin on how if you are in debt that you should simply tear it apart as they are a key culprit to accumulating debt and instead you should just use something such as cash. Basically with that, if you are out of money then you cannot continue to spend.
Maybe itâ€™s just me, but I always found that people who carry quite a bit of cash tend to spend more in a general everyday life scenario. For example, you are more inclined to spend money when you have say $50 in your wallet and seeing that $1 item is peanuts overall and so you figure why not? On the other hand, imagine whipping out your credit card for a $1 item. In those cases I have noticed, itâ€™s kind of the opposite where with the credit card you tend to not want to spend in that scenario and so in that sense it is helping you to save money.
Iâ€™m a bit surprised on how there are so many articles on how credit cards take money away from people when it can realistically be a way to help you make money as well. For the most part, Iâ€™m pretty sure almost every credit card out there has some kind of rewards program to either get free items or cash back options where you can earn a percentage of how much you spent. Just thinking about it, if you really wanted to make money out of it, what would happen if you had a group of people who insists in using nothing but cash always and instead you asked them to give you the cash and in turn you use your credit card to pay for the bill? Essentially, you will get the rewards by using the card and it didnâ€™t really cost you anything.
Imagine that for big ticketed items as well where say someone wants to buy a TV for $4000 and insists in paying by cash. A lot of people that I know are all about wanting to get the most value out of something and there are times such as those where people would want me to use my card for their purchase and in turn they simply write me a cheque for that amount since I have a high enough credit limit to make the purchase and they would rather see someone get something out of it as oppose to getting nothing.
Of course, for this to work you should get rid of any debt that you may have first and foremost when it comes to using a credit card. This way may even help you to become better in managing your finances since you are constantly accumulating various bills while paying them off which makes you get used to being more responsible with a credit card.
For myself, getting a credit card for the first time was an exciting time for me as I knew this was something that could give me so much more leverage and convenience in buying things with the added benefit of earning rewards and such. The minute I was at an age to do so I immediately got one and till this date I can honestly say that having and using one constantly has taught me a lot about managing finances. Overall, I think it is better to use your card as much a possible as oppose to simply using cash as you can learn a lot while making something out of it as well.