One of the points learned at Financial Peace University is that Dave Ramsey doesn’t like credit cards. Even though I’m a fan, I think credit cards are useful tools for responsible money managers.
So, although there have been times in the past when I had too much credit card debt, I rely on them for certain transactions (and it’s not because I don’t have enough money to pay cash).
I don’t like to use my debit card in situations where it’s out of my sight. Although most people are honest all it takes is one dishonest person to cause you big headaches.
At most restaurants your card is taken to another place for processing. The number can be copied or the card cloned in that time.
I recently paid a deposit on next summer’s vacation cruise. Although I feel safe with our choice, another cruise line went out of business a few weeks ago leaving future guest wondering if they’d get there money back. They should feel pretty secure if they paid with a credit card.
In a personal incident, a crib I ordered was returned to the warehouse but I couldn’t get it resent or my money refunded. I refuted the charge and my credit card issuer refunded the money to me after an investigation.
There are a variety of credit card rewards program. The reward is points or money back or some other benefit for every dollar spent with the card. I have a friend who makes all regular monthly purchases on her card just for the cash back rewards. By the way, she does pay the balance off every month.
My husband still uses a card he had when we married. It accrues credits towards the purchase of a GM car. I’ve been begging him to use something else as we’ll never buy a new car again!
Using credit cards can be a part of your personal finance strategy. Do you use credit cards? Why?
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