Why I Don’t Use Credit Cards

The issue of credit cards comes up a lot when I teach FPU, and there is always someone who doesn’t see the problem with using them. Personally, I think credit cards are at best dangerous and at worst usurious. There is absolutely no upside to credit card debt, whatsoever.

Here are several reasons why I don’t use credit cards for my finances:

  • On average, people spend 12-18% more when they use credit cards vs cash.
  • Credit card companies don’t have any loyalty.
  • Perks and rewards come at a very high cost.
  • Credit Cards make it difficult to track your purchases day-to-day and easy to buy things you can’t afford. I don’t want to use any tool or service that has a vested interest in damaging my long-term future.

Here are some reasons why I don’t do business with these companies:

Dabbling with credit cards is like playing with snakes. Don’t be surprised if you get bit!

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