My love/hate relationship with credit cards

Once upon a time, I had credit cards… A LOT of credit cards. I had one for every store in town, plus the Costco card, several visas, and so on. I could get one, so why not? I used every single one when there was still month at the end of the money. The splurge for having a great day… It didn’t take long until not only was our income not quite enough, then it became MUCH less than enough, with the credit card payments added in. It’s the worst feeling in the world… when you have to decide which bills are going to be lucky enough to get paid that month. Should I pay my car insurance or buy groceries? That’s when the depression sets in, and the stress and worry takes over.

Fast forward several years, and my credit cards are finally all paid off, thanks to some very creative financial means. I have closed several of my credit card accounts. I want to close them all, honestly. They’re nothing but trouble for me.

This is where my love/hate relationship comes into play. Credit cards have their place, and there are so many things in our lives that require one… rental cars, hotels, online shopping, among a variety of others. My problem, however, is that I have a very hard time finding balance when using them. I have them stashed in a secret place in my home. This way there is no way for temptation when I am in town. Online is a whole different thing entirely. I have given myself an allowance every month. I got a prepaid visa credit card from Walmart.  This card gives me peace of mind when I shop online, and doesn’t allow me to go over my budget. Along with that, if by chance my information gets stolen, there are limited funds available. It depends on which card you choose, but, the one I chose has a $3 monthly fee, along with a $3 fee when you have funds added. For me, $6/month is a small price to pay for piece of mind and control of my spending. My address is assigned to the card, so any online purchases are possible, unlike prepaid visa gift cards.

The one thing that my husband talked me into was the Amazon rewards credit card. I was hesitant. I didn’t want another credit card. I made a deal with him. We were going to be making a larger purchase on Amazon, and getting this card would not only give us $70 off that large purchase, but also pay us 5% back. If I use it for gas, I get 3% back. Anything else, I get 1%. That was hard to pass up. I closed several of my other credit card accounts to offset this one. Some say that closing accounts can damage your credit score. Some say that it doesn’t. I really don’t care either way. Honestly, I’m not planning on making any big purchases for at least the next 5 years, so I’d rather close them, and build my credit back up. I don’t intend to use it for everything. I will however, use it for my Amazon and gas purchases. I get points that I can use on Amazon on the next billing cycle. walmart-moneycard-preferred FREE MONEY! I’ll make it a point to pay that credit card every week, if it has been used. If I don’t have the money in my account to pay cash, I won’t buy it. Period.

I get an offer to open an account at every store I go to.  I’ll save money, they say. As hard as it is for me to say no when they dangle the carrot of savings in front of me, I simply say, “No thanks. I get in too much trouble that way”. They smile knowingly, and then the little impulsive, hazardous moment passes. Whew!

What it comes down to is this…  If you have credit cards, that, in itself isn’t bad. When they start to become a habit and a necessity, that’s when problems start to arise. I urge you to take a step back and really look at your financial habits. See if there’s an alternative method that can better your financial future.

YOU ARE IN CHARGE of your financial future.  Make it work for you!

 

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