Debit Cards vs Credit Cards

There is quite a bit of debate surrounding debt vs credit cards. If you have ever tried to rent a car without a credit card they will tell you it can’t be done.

Personally, I think even the best credit cards are like playing with fire. Some don’t even let you pay on your balance throughout the month making you have to wait until the end of the month to pay it. They do this in hopes that you will spend all your money so you wont have enough to pay off your entire balance.

Debt cards are better but can still be dangerous if you don’t keep careful track of what you spend. I have a friend who racks up overdraft charges like crazy because she never balances her checkbook.

If you have bad credit, bad credit credit cards are certainly not the best idea either. They have huge interest rates in the range of 32% - 36% and will eat all your money up in interest.

Many people use credit cards saying they will pay off the balance each month, but very few actually do it. I have changed my philosophy from “Can I afford the payment?” to “If you don’t have the cash, don’t buy it.”