You hear it over and over again "credit cards equal ever lasting debt". Well, statistically speaking 9 out of 10 people have a credit card, either from a favorite shopping store or major credit card company. The self proclaimed financial experts say "only use CASH and never finance". Why do experts say this? 7 out of those 9 credit card owners abuse and misuse credit cards with average credit card debt over $5,000. Since so many people have credit debt it now seems acceptable to have. Good luck paying it off. Expect to give up 20-30 percent on just interest each monthly payment.

Let me first point out why it is easy to go into credit card debt. The less obvious reason is greatly overlooked and that is how credit cards are amortized. Amortization is a periodic structure of formed payments you will be making over the course of x amount of time. Credit cards are usually amortized around 10-15 years which is how they configure the minimum monthly charge. In perspective you charge $1,000 to your new credit card. At the end of the month your friendly credit card company bills you only $15. Doesn't seem so bad right? Well this may change your mind, that $15 is actually only $3 dollars towards your actual debt and the rest is going towards the interest charge. So if you kept paying the minimum of $15 it would take you 10-15 years to pay off.

Well let’s turn the table on the credit card companies! I'm proud to say that at the age of 18 until now almost 10 years later I have NEVER paid a dime to any credit card company EVER.

Actually I have made hundreds of dollars by having a credit card and charging everything to it every month. Bills, groceries, gas, toys, you name it. Anything I ever need or want is purchased with my good old Citi Card from Master Card.

Sign up for a credit card that offers cash back. Only charge what you can afford to pay off at the end of every month (This is number one when being Frugal) .Sign up for a card that has no fees and no requirements. This not only saves you money but makes money in return. Store cards will also offer incentives to shop and these can lead to not very frugal purchases, be careful and only buy what you need.

So to all the savvy financial experts; let me ask you this, "Does the cash under your pillow give you a return when it is spent? Because my credit card sure does."

Credit card offers and details.

Be Frugal!


  1. Monsal Varga // March 6, 2009 at 3:04 AM  

    God post! And so true. This is the Rosetta Stone for those who don't know how to use their credit cards.

    I had to learn this from my own painful experience, so I cannot say (as you do) that I never gave them a dime.
    :) I sure did give them quite a handful of dimes in my first two years of using credit cards!

  2. Anonymous // January 10, 2012 at 10:16 AM  

    Solid information, your right!

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