To charge or not to charge? That is the credit question
Credit cards are convenient little pieces of plastic that can easily ruin your life. You can charge almost anything to a credit card, but that does not mean that you should. Using credit cards for some purchases are guaranteed ways to dig a hole that you might have difficulty getting out.
Overwhelming Student Loans
Repaying your student loans can get overwhelming. It’s tempting to charge the balance to your card when you’re struggling to make it. Instead, look into other repayment options. Maybe you qualify for an income-based repayment (IBR) program or deferment. You might even be able to have some of your loans forgiven. Look for long-term solutions. Charging it will be a temporary fix with a bigger headache later down the line.
Vehicles Payments Become Too Much
Most car dealers will not process a credit card payment for a car purchase because they do not want to pay the transaction fee. However, you might find that 1/100 that doesn’t care. Unless your credit card interest rate is super duper low, this is a no-no. In most cases, getting a traditional auto loan from a bank or credit union will have a significantly lower interest rate than charging it.
It is always better to have cash when engaging in some retail therapy. It is so easy to get carried away on a shopping spree with a credit card. You might have a limit that you plan to spend, but your credit limit is most likely higher. With cash, that limit is more real to you. When you see the money leaving your hand you’re more likely to keep yourself in check and not be as impulsive with your purchases.
Makeover Your Home In Stages
You want to redecorate. It is very tempting to go to the store, charge everything, and pay it back later. However, those purchases will add up quick. Instead, consider making a list and buying things gradually. Every time you get paid, get an item off of the list and cross it off. Before you know it the list will be done, your home will be complete, and you won’t have had a huge bill.
Drinks On Me!
Using your credit card while enjoying a night out with friends is dangerous. When the drinks start to flowing, you’ll become more relaxed, and so will your grip on your credit card. Next thing you know, you’re buying all of the drinks. The next morning you may not have a hangover, but you are sure to have some regret over the charges. Just like with shopping, it is best to take cash with you when you’re going out on the town and leave the credit card at home.