Credit Cards: Good or Evil?

Here's a little fact about me:  By the time I was 23, I racked up a huge amount of credit card debt.  Like, $30,000 worth.  (Ugh, even writing that makes my stomach turn.  It's possible I've never admitted that before.)  It was awful.  I struggled just to make the minimum payments.  The worst part?  I had no idea where the money went.  There was absolutely nothing to show for it.  Except huge bills, ridiculous monthly interest charges, shame, embarrassment, and a headache.

The decision to stop spending was the easy part.  I scaled back my lifestyle and was able to move back home (embarrassing but true).  And, most importantly, I CUT UP MY CARDS.  Every single one.  I used my debit card exclusively for the entire time it took me to pay off the debt.  Which, btw, I did!  By 2009, when I was 28, I was 100% credit card debt free!!!!!!

Being in debt sucked.  No, it more than sucked.  It made me feel ashamed; it was my deep dark secret.  But the experience taught me a very valuable lesson:  Credit cards can be EXTREMELY dangerous.  I remember making my last payment and thinking "I will never, ever, ever get myself into this situation again."

Believe it or not, now I use credit cards ALL THE TIME.  Does that surprise you?  Did you think I'd be too traumatized to go back?  Well, I was traumatized, which is precisely why I feel safe using them again.  After being in such crushing debt, I know how important it is to treat credit cards like debit cards.  Which means, I spend only what I can afford and I pay the bills in full every month.  IF YOU CAN DO THAT, then using credit cards can be a positive thing!  But if you can't, they can be trouble.

Listen, credit cards have their benefits:  You can earn points on them which can be redeemed for rewards like cash or gift cards (this is my favorite perk and really the reason why I use them).  Plus, they can been extremely helpful in an emergency.  An emergency vet visit?  It's going to cost you big bucks and if you don't have the cash, credit can be perfect.  It's all about sticking to what you can afford, not over spending, and treating your credit like cash.