I get a lot of people asking me for minor financial advice, since rarely am I seen worrying about money or penny pinching. I’m sure this is more because of my devil may care attitude, than my financial acumen, but regardless, my brain is valued by more than just zombies.
Behold this article from Lifehacker.com, reposted from Free from Broke, which settles the debate on which kind of credit card you should pay off.
Personally, I’ve viewed credit cards as a necessary evil. When you’re starting to build your credit, it’s good to have at least three that you pay off regularly, without lateness and a stable balance. Over time however, they start feeling like the One Ring, warping you into a sick and twisted shadow of your former self, like Gollem. You start maxing them out, building up your debt beyond control, and engaging in forced frugality to try to make ends meet.
A few things about credit cards that should be common sense:
- Whatever you do, make sure you pay off whatever you put on your card within that billing cycle
- Always pay at least twice the minimum balance
- After you’ve established credit history, get rid of all but one of your credit cards
It’s my personal thought that people of modest income should only have one credit card for online purchases, or those cases when they don’t want to carry cash. Personally, I’d rather a check card of some sort, so that any purchases are made using real money taken out of my account, versus credit. However, I see the need for a possible “emergency” credit card, as there have been moments where I’ve had to drop a grand or two to save a family member (not from prison, but from outstanding parking tickets).
My advice to you all, is spend a few minutes a day looking at your expenses, and make hard decisions on what you’re willing to cut, for the sake of some financial freedom.
