I\’ve been on both sides of the credit card thing. I had $34k in debt at one point, a big chunk of it credit cards. Now I use credit cards for basically everything and pay them off in full each month. Same tool, completely different outcomes.
So are credit cards good or bad? The honest answer is: it depends entirely on you.
How I got into $34k of debt
I got my first credit card in college. $500 limit. I thought of it as free money. Which… it\’s not. At all. But 19-year-old me didn\’t understand that.
The limit kept getting raised. I kept spending. I paid minimums and didn\’t really track the total. Before I knew it I had multiple cards, all carrying balances, paying 20%+ interest.
The math is brutal. If you owe $5,000 at 22% and pay minimums, it takes over 20 years to pay off and you pay almost $8,000 in interest. Eight thousand dollars. On a five thousand dollar balance.
That\’s how credit card companies make money. They\’re betting you won\’t pay in full.
![\"Credit](\"https://images.unsplash.com/photo-1556742049-0cfed4f6a45d?w=800\")
How I use credit cards now
Fast forward to today. I put almost everything on credit cards. Groceries, gas, bills, random purchases. At the end of the month, I pay the full balance. Always.
Why do this? Benefits. Cash back, travel points, purchase protection, extended warranties, fraud protection. If you pay in full, you\’re getting free money from the credit card company instead of giving it to them.
My main card gives 2% cash back on everything. That\’s basically a 2% discount on my entire life. It adds up to hundreds of dollars a year.
The rules I follow now
Never spend money I don\’t have. The credit card is just a payment method. If I couldn\’t pay cash for it, I don\’t buy it on credit. Period.
Pay in full every month. No exceptions. The moment you carry a balance, you\’re paying interest. The rewards become pointless when you\’re paying 20% interest.
Track spending. I check my credit card app regularly so there are no surprises. Knowing what I\’m spending helps me stay in control.
Don\’t open too many cards. I have two. One for most stuff, one that has a better rate for certain categories. That\’s plenty.
When credit cards are the enemy
If you can\’t trust yourself to follow those rules, credit cards will hurt you. Seriously. There\’s no shame in being someone who shouldn\’t use credit cards.
If you carry balances month to month, cut them up. Use debit or cash. The rewards aren\’t worth 20% interest.
If you spend more when using cards (lots of people do – it doesn\’t feel like \”real money\”), that\’s a problem. Cash only might be better for you.
If you\’re currently in credit card debt, focus on paying it off before worrying about rewards. The math doesn\’t work in your favor until the balance is zero.
The psychological trap
Credit cards are designed to make spending feel painless. Tap and go. No counting cash. No watching your bank account drop. The pain of paying is delayed.
This is features for the credit card company but a bug for you. Being aware of this psychological trick helps, but it doesn\’t make you immune.
Some people can override it. Some can\’t. Know which you are.
Building credit with cards
One legit reason to use credit cards even if you don\’t care about rewards: building credit history. Your credit score depends partly on having accounts in good standing.
You can build credit with a card you barely use. Put one subscription on it, set up autopay for the full balance, forget about it. Your credit builds without temptation to overspend.
My recommendation
If you\’ve had credit card debt problems: proceed with extreme caution. Maybe don\’t use them at all until you\’ve been debt-free for a while and built better habits. Cash or debit only.
If you\’ve never had debt issues and can genuinely pay in full every month: credit cards are great tools. Get a decent rewards card and use it for everything.
The tool isn\’t inherently good or bad. It\’s how you use it. Be honest with yourself about which type of person you are.
Took me years and $34k to learn that credit cards aren\’t free money. Hopefully you can learn it cheaper.