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December 28, 2005

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I do not believe that credit cards are evil. I just regret that most high schools do not have a basic required (or even elective) class on how to manage their credit rating and keep out of credit card debt, when it is most needed. That, or as part of a freshman seminar in college.

I also do not think credit cards are evil if used properly. However, I can clearly understand the commentor's perspective.

With discipline, credit cards can be a great tool in one's quest to reduce debt, save for retirement, etc. For example, I am currently using a major grocery store credit card that gives me points that end up in free groceries. With discipline (i.e. not spending money you do not have and paying off the balance every month) I am able to use my card for purchases on things I would normally buy and getting what works out to be almost a month's worth of free groceries a year for our family of four. Not bad!

Dan

Wow, that's a good deal, Dan. I do not think any of my local grocery stores do anything like that.

The Carnival of Debt Reduction #17 is now live at pfadvice. Thank you for your contribution!

Education is the key. Credit is not any more evil than money is. Both are tools. Leveraged correctly they can be very useful.

Don't close off all your credit cards. You may want to get a mortgage one day. A challenge without a credit history.

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