Credit is more convenient and often more secure than carrying cash.

The say “cash is king,” but maybe not any more !

Most people have only credit and debit cards in their wallets since we are now a “tap and swipe” society and there are many situations where it makes more sense to use credit over cash.  Convenience, card benefits, security and reward points make up some of the reasons people today prefer to pay with credit.  But, cash is still something you should have with you, especially if you are travelling.  Some merchants may not accept debt or credit.  Try to use credit cards as a tool to get added benefits from your spending (points and rewards).

Christine’s Tip:

Using credit cards is so much easier than making sure you have enough cash in your wallet for a purchase, but it also makes it very easy to overspend.  Often times your budget is kicked to the curb when you are enjoying a meal out with friends or on a shopping spree.  It’s so much easier to “charge it” now on your credit card and deal with the debt later, right?

We’ve all done this.  Using credit makes it so easy to spend more and blow the budget.

While it is okay to sometimes overspend, be mindful of your credit use.  You don’t want to get into a situation where you have to carry the credit balance month-over-month because you can’t pay it off.  Once that happens, the credit card companies are now in control – eating away at your net worth, charging high interest, reducing your credit score, and making your financial future vulnerable.  Credit cards must always be paid off on a monthly basis.