I use my credit card to pay for everything that I can. BUT, I pay the balance in full every month.
I’ve never ran a balance on my credit card and I never intend to. The interest rates on credit cards are typically just way too high for me to justify running a balance.
You’re overspending if you’re running a balance on your credit card and you can’t pay it off. This calls for re-evaluating spending habits and the priorities that we have for our money. My priority is not for my money to go towards paying interest charges to a credit card company.
I use my budget to tell me how much I can spend each month. With that in mind, I pay for everything on my credit card, receive the rewards that it offers, and pay off the balance in full.
I know some people who this strategy works well for, but I also know many more people who aren’t disciplined enough for this approach. If they don’t see their bank account balance decrease with each purchase or don’t physically hand over the cash, then they’ll continue charging to their credit card to the point that they aren’t able to pay it in full.
