Do you know how to correctly use credit cards? If you use credit cards incorrectly, then it can lead to a lot of unwanted credit card debt and interest charges. There are people who can use credit cards to their advantage, and others who use it to their disadvantage.
If you use credit cards to your disadvantage, then you should stop using them right away. There is not shame with that. You will need to learn how to use cash, which many people do.
You should stop using credit cards if…
You have a lot of credit card debt.
If you already have a lot of credit card debt, then there is your first clue that you should stop using credit cards immediately.
You don’t have to cancel all of them unless you absolutely think that you should, but you should at least hide your credit cards from yourself and not rely on them when you are out and purchasing items.
You may be asking “But, what is a lot of credit card debt?” This is up to you.
If you think you have a lot, then you probably do.
If you have any credit card debt that is accruing interest, then I consider that too much regardless of what the amount is. You shouldn’t be paying interest on your credit card debt, because that is usually around 20% and above, which is a lot of money and it adds up quickly.
You treat your credit card like cash.
Do you treat your credit card as if it is another form of income? If you do, then you are using credit cards wrong. Credit cards are not a form of income, you have to pay this money back!
Leave your credit card(s) at home and start using money that you actually have.
You don’t have enough money to pay off your credit card balance each month.
If you don’t have enough money to pay off your credit card balance each month, then you should not be using credit cards. Paying interest each month on your credit card balance is just not worth it, and it is a huge waste of money.
You should be paying your balance in full, and not just the minimum. If you are paying the minimum each month, you are STILL paying interest (unless your interest rate is 0%). This is something that many consumers get wrong.
Do you make any of the above credit card mistakes?
