It is no doubt very tempting to spend for things and not worry about shelling out cash at that moment. I’m talking about the lures of credit cards. I heard of people go bankrupt because they max-out the credit limits oftentimes of not just one but several cards.
However, credit cards are not all that bad. In fact, we can make them work for us and not against us. If we do maintain timely payments in full and earn points in the process, we can even get airline mileage and receive gifts from the company’s rewards system.
In detail, we can achieve that by: One, spending within our means. Two, avoid paying on installments (because this is where we make those credit card companies rich). Third, keeping one or two credit cards at the most if you know having more than that can only drag you close to bankruptcy.
At one point in my career life, I started receiving pre-approved cards in the mail. If I remember correctly, there were at least five that were sent to me. At that time, I thought that maybe, just maybe, if I was much younger and less mature, I might have kept all those credit cards and used them to my heart’s content.
But knowing how hard it is to earn money, deciding on whether to live credit-free or otherwise was not a tough decision to make. Looking back, I have no regrets.