What Do You Put on Your Credit Card?
Are You Making Wise Credit Card Purchases?
It’s a fact of life, almost all of us use credit cards. The question is, what do we use our credit card for and are the purchases we’re making wise ones? If you pay off your credit card bills each and every month, you have nothing to worry about. But if you find yourself carrying a balance on your credit card, there are some things you probably shouldn’t be charging. Here are some of the most common credit card purchase pitfalls.
Fast Food
Almost all fast food restaurants are not accepting credit card payments. Good for them, bad for us. If you need to finance your fast food purchases and pay interest on a taco or a hamburger, you shouldn’t be eating out.
Groceries
If it’s a choice between charging your groceries and starving, then go ahead and charge some food for you and your family, but make sure you charge only what you absolutely need to. Charging your groceries can get you in way over your head and if you need to consistently charge your groceries to your credit card, it may be a sign that you’re in over your head financially.
Gasoline
As with groceries, gasoline is a necessity of life. However, you don’t want to get in the habit of charging your gas to your credit card. Instead try to work out a budget that allows you to live within your means, eliminating the need to pay interest on your gas purchases.
Entertainment
While there’s nothing wrong with charging some entertainment to your credit card every now and then, you don’t want to make a habit of it. If you see a movie every week and can’t pay it off at the end of the month, you’re paying a lot more for that movie than just the price of the ticket in the long run.
While changing your spending habits may be hard at first, it will definitely pay off in the long run.
Comments
i believe you are doing a great job by posting all these scams, thanks a lot for the service
Posted by: Oren Nordhagen | May 3, 2006 11:10 AM
Your advice about using credit cards is OK for those who over-indulge. However, for those of us "in control" we can save money by "playing the float" between the time of expenditure and the time we receive our bill. I have never paid a cent in interest and I have enjoyed a rebate by using my card for most purchases over $20. Thanks.
Posted by: Nancy Frost | May 3, 2006 1:51 PM
I personally use a debit card whenever I can. That way there is of course no interest involved and no surprises at the beginning of each month when the bills come in. And it is easy to get a balance or mini statement at an ATM.
Posted by: Anonymous | May 3, 2006 4:07 PM
As with all advice there are exceptions. I agree with all your advice about credit cards and have avoided their use for years. The one card I have rarely leaves my wallet and the monthly bill, when it arrives, is paid in full. There is, lately, one area where I have started using my credit card. The savings varies almost as rapidly as the prices change but in my area the cheapest gas is to be found at places where only a passcard and the credit card can be used. Again, though, the key is prompt payment avoiding all the extra charges that will accumulate.
Posted by: Ted Lauts | May 4, 2006 5:16 PM
If you are ordering online, use a "virtual credit card number". Especially if you have a high limit on your card. The expiration date on these typically expire after only a month. Plus the number you are issued is completely different from the one on your actual card. Great way to add an extra layer of security to those online purchases.
Posted by: Anonymous | May 6, 2006 11:46 PM
I enjoy your newsletter. Wish I had been aware of it before we were scammed earlier this year. Buyer beware is so true. Thanks for your info.
Posted by: Linda Litten | May 9, 2006 10:48 PM