Today we’re sharing money tips about things you should never buy with a credit card. Credit cards can be great in a time of need or an emergency. They can also be the worst possible way to pay for something. If you have a credit card, try to only use it on purchases that you can pay off right away when the bill comes in. Things such as gas in the car, or something you might need right away like new tires. I have compiled a starter list of money tips with things you should never use your credit card for.
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Money Tips: Things You Should Never Buy with Credit
Medical bills: It might seem easier to just pay the bill and worry about the credit card payment later, but the reality is you will end up paying more because of finance charges. Call doctor’s office or hospital and work with them on a reasonable payment plan. They typically won’t charge you interest fees as long as you are paying. Read our tips on how to save money on health costs
Wedding: Although it would be easiest to just charge whatever it is you want for your big day, avoid paying for anything with your credit card. It is possible to plan the wedding you want within your means and not use credit. You may not be able to say ‘I Do’ at the castle you have dreamed of since you were a little girl, but it won’t change the celebration of the two of you. Do you really want to enter into your new life together with a mountain of debt?
College tuition: Instead of paying your tuition (or your child’s tuition) with plastic, apply for student loans and grants. There are so many out there for every qualification. Paying with a credit card is only going to give you a higher interest rate and payments are due immediately. Student loan payments are often not due to start until you are out of school. They also have deferment options as well should you come across some hard financial times. A credit card is non-forgiving in times of financial trouble.
Credit cards: Paying off one credit card by using another might sound like a good idea, but don’t do it. With interest rates and finance fees you are just digging yourself into a hole that can be really hard to get out of. Instead, one of the best money tips is focusing on paying off one card at a time. Pay more than the minimum on one card, and pay the minimum on the others. Once the one is paid off, move on to the next.
If you have already made some of these purchases with your credit card, it’s not the end of the world. Simply write out a budget for yourself and work on paying off the card. In reality, whenever you use a credit card for something, you always end up paying more than what the item was worth.
Have you used your credit card for something you thought you shouldn’t have? Share with us below what you used it for, how you got out of it and what you learned! We always want to hear your great money tips!