How I Make Credit Cards Work For Me (2024)

“Credit cards are evil!”

Or, so some might say. And many others might not go as far as calling them “evil,” but they strive to live a life free of them.

You might think these types of people are what we call “paranoid” or “out of touch with technology,” but when you read the alarming facts about credit cards in America, I don’t think you can blame them for being against credit cards:

1. The average cardholder in America holds 7 credit cards.

2. According to figures from the Federal Reserve, total U.S. outstanding consumer debt was $3.34 trillion as of February 2015.

3. The total U.S. outstanding revolving debt, which is chiefly made up of credit card balances, was $884.8 billion as of January 2015.

4. The average credit card debt per U.S. adult, excluding zero-balance cards and store cards is $4,878.

5. Roughly 1 out of 20 Americans with credit files are at least 30 days late on a credit card or other nonmortgage account, according to a 2014 report by the Urban Institute.

No, I certainly don’t ridicule those who choose to shy away from credit cards. When you see how in-over-your-head a credit card can make you, it may be a very wise decision to choose to live credit card-free.

Because unfortunately, many people do get in-over-their-heads when it comes to credit cards. Many view credit cards as a way to buy it now, and then pay for it later when they have the money. Others may view it as a little extra spending money, not even bothering to think about the consequences of paying it off in the future. Some even get into debt and then apply for additional credit cards to help them pay off the debt they already owe!

Quickly enough, the bills pile up and you feel like you’re a slave to your creditor. Large amounts of debt hover over you. You might even feel great anxiety every day as you crunch numbers in your head, trying to figure out how you’re going to pay the bills that month.

It would almost seem like there are only two choices with credit cards: either run from them or become a slave to them. But I want to offer you another way to look at them: using credit cards so they work for you. (Yes, I know that’s not Dave-Ramsey-approved, but we’re all entitled to our own opinions, right?)

My husband and I have chosen to use credit cards. In fact, we use them for the majority of our purchases! Yet, we have no debt.

To us, credit cards are essentially like debit cards. We know how much income we have each month, and so that’s how much we can spend, period.

Because, let’s face it, having a credit card in your hand doesn’t change how much money you have in the bank.

For us, when it comes to making purchases with our cards, we ask, “Would I be able to purchase this right now with my debit card?” If the answer is no, we don’t buy it.

And when our credit card bill comes in the mail, we pay off the balance completely, every single month. That means we pay no fees and no interest.

So, you might ask, if you treat your credit card like a debit card, why don’t you just use a debit card?

While we see the potential dangers of having credit cards, we also see the benefits. Credit cards help you to establish credit. And when you spend responsibly, that means you can build good credit. That will come in handy if you ever want to lease an apartment, buy a home, or buy a car. Because let’s face it, most of us will have to get loans for major purchases like houses or cars, not everyone can pay cash for things like that!

Additionally, there are many credit cards nowadays that give you rewards. For example, you might get 5% cash back on the purchases you make.

So when you spend only what you already have and pay off your bill every single month, you are not only building a good credit report, but you are being rewarded for the purchases you were going to make anyway.