As many of you know, I don’t use credit cards. I have been well aware that there are some great credit card rewards programs out there that are very enticing. In fact, when we were paying off our consumer debts, I played the balance transfer game and continually transferred our balances to get 0% and earned some nice rewards in the process. But when we finally paid them off, we decided to do away with our credit cards and stick with our 2% cash-back debit card.
I want to issue a strong warning about them. I have seen a lot of people who thought they could handle having a credit card end up in a bad situation. It really takes a unique type of person and a lot of pro-active diligence to be able to use a credit card and come out ahead. Carrying a balance and paying 15% interest just to get some miles or points just doesn’t make any sense. Please don’t do this.
Do yourself a favor and know your weaknesses and if you aren’t a person who isn’t 100% confident that you will pay off your credit card balance each month – don’t even bother looking for a credit card, just get started paying them off ASAP and avoid them like the plague.