Should you avoid spending on credit at all costs?

Many people fall into the debt trap due to wild spending habits using their credit card. Credit card debt is a problem that can leave one cashless for a long time. Becoming financially independent requires one to have control over their spending, especially their credit card habits.

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Some financial disciplines suggest that if you can’t purchase an item with cold cash, you simply don't deserve it. In the past, sticking to principle was easy. With the effortless access to credit cards, people can swipe until they drop. It’s still beneficial to stick by this rule to prevent overspending. Michelle L. Marquez stands by the same principle. If you can’t stop yourself from using your credit card, might as well get rid of it. This will help build your finances and teach you to spend wisely on necessary items.

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While there can be advantages in using a credit card, they can easily be toppled by the disadvantages that are closely attached to the benefits. Avoiding to swipe the plastic for payments can save you money. The mere act of paying using cash lets you be in control of your finances. According to aspiring financial advisor Michelle L. Marquez, cash is king. You can afford peace and quiet at night knowing you won’t have to pay for extra card fees after purchases.

People who pay with cash actually have more money in their savings than those who pay with their credit cards. It’s important to remind yourself that the money you’re spending to pay for your items if you use a credit card is money you haven’t earned yet, which gives way to potential debt.

Hi, I’m Michelle L. Marquez, an aspiring financial advisor currently studying finance at USC. For more updates to help you build your finances, subscribe to this blog.

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