I got a few nasty emails about my last post, people claiming not to be brainwashed yet still hating credit because it is evil. So I would like to continue my point.

1. When used properly you can increase your credit score, getting you a better rate for when you are forced to get a loan, (lets face it not everyone can pay cash for a house).

2. Many Credit cards have perks (2% cashed back, ect), if you are spending the money anyways, might as well get some cash back to lower your costs.

3. Easier and therefore better for keeping track of expenses then the old pen and paper.

Now I agree there are some people out there that can not handle an open credit line, they are foolish, and get into sticky situations where they get into debt up to their eyelids and just struggle to make ends meet. These people should destroy their cards, (if you can’t handle the temptation you should get out of the kitchen). But to make a blanket statement that everyone should destroy their cards is just foolish and bad advice. It is better advice to use them only if you need to, don’t dig yourself in too deep, and if you get in trouble there is always your emergency fund.

Bottom line is that debt is a tool, much like a hammer, if you are too dumb to not hammer your fingers, either learn how to not hit your fingers or use a screwdriver.

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• Credit Cards Vs. Debit Cards 

1. lulugal11, March 28, 2008:

   Credit Cards are COOL!!!!
   I admit that I did make a few mistakes early on (hey I was a freshman in college!!!) with my credit cards. I got smarter when I started reading personal finance blogs (and writing my own) and realized how great credit cards are as a TOOL to building a better credit score.

   Using credit cards has given me cash back (chase visa) and numerous other rewards. The trick I learned is to not carry a balance month to month and to act like the credit card IS your debit card. To make this work, I use my ING account and send the amount of the purchases I put on the card off to be paid. The card is paid within ten days of the purchase (well below the 20 day grace period) and I never carry a balance so I don’t pay interest on the card. I earn cash back so that is more money for me after a few months.

   I don’t use my debit cards because I don’t get cash back. Plus, using the credit card instead of cash means I can track where my money goes much better..and you can’t swipe a credit card in a vending machine so I am not tempted to get junk while at work.

   Love your posts…keep the good stuff coming!

   Oh yeah..and credit cards ROCK!

2. Ned Carey, April 14, 2008:

   It’s great to see this blog and the poster above who are both young, and understand money and budgeting. As an old fart I get the impression that many young people are clueless when it comes to finances. When they are my age they will be paying for the sins of their youth.