Credits cards get a bad rap in the personal finance community, and understandably so: they are a big source of temptation for people to overspend. After all, it’s so much easier to swipe a card at the register than fork over cash. They’re also really convenient for those moments when you’re in a pinch and don’t have enough funds for something right then and there. And if you happen to a compulsive shopper or have an addictive personality, they can make the problem worse. Remember Rebecca Bloomwood from Confessions of a Shopaholic who couldn’t part with her credit cards, even when she was in major debt?
When used improperly, credits can wreak havoc on your financial life, a reality many Americans know all too well, seeing as credit card debt has hit an all-time high in the nation. According to 2017 report by Experian, the average American carries a credit card balance of $6,375, a 2.7% increase from the previous year. (Notably, but not all that surprisingly, millennials have more credit card debt than any other age group, up 10.8% from 2016.)
While the figures are startling, it’s still possible to keep your credit card without running your bank account dry and compromising your financial future. All it takes is smart planning and self-control. Easier said than done, but it’s possible. In this week’s installment of the 3-Minute Guide, brought to you by Skillshare, Erin shares some helpful tips to manage credit cards. Check out the video on TFD’s Youtube channel find out how to get really good at credit cards.
And while it’s tempting to demonize credit cards altogether, the reality is that they can work in your favor when used with intention. Rewards, fraud protection, travel perks, and building credit for future goals are all real benefits, but they only matter when you’ve created a system that prioritizes clarity over impulse. Understanding where you stand financially, what triggers your spending, and how interest actually accrues can transform a card from a liability into something that supports your long-term plans.
As more people lean into this practical, mindful approach, the next step naturally becomes learning how to choose the right card in the first place. Not every card is built for every lifestyle, and evaluating which ones align with your needs means looking beyond flashy ads or catchy bonus offers. This is why a thoughtful credit card comparison becomes such a valuable part of the process. Seeing the nuances laid out side by side helps you understand what truly benefits you, whether that’s lower interest for debt repayment, cash back for everyday essentials, or rewards that help stretch your travel budget.
Once you begin making credit decisions based on fit rather than impulse, it becomes easier to stay disciplined, maximize advantages, and avoid the pitfalls that lead to overwhelming debt. Responsible credit card use becomes less about resisting temptation and more about equipping yourself with the right tools, the right information, and a healthier mindset around money.
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