Tips + What NOT to Buy

In this article, we’ll discuss what to use your credit card for and when NOT to use it.

Credit cards can be great, give you a ton of perks, great short-term credit, and can help you keep track of your spending.

They can also be your credit’s worst enemy. Late payments, overspending, and going into debt can hurt your credit.

What to buy with a credit card – The truth

The truth about credit cards lies somewhere between these two extremes. As long as you manage them well, they are worth having. But if you don’t pay off your bill in full at the end of the month, you’ll owe a hefty interest on the remainder, usually around 14 percent.

This is what is known as the annual percentage rate or APR. Credit card companies also charge hefty fees every time you miss a payment, usually around $35. It’s also easy to abuse credit cards and end up in debt, as many American credit card users have done.

This is not meant to scare you away from using credit cards. In fact, instead of playing defense by avoiding credit cards altogether, I want you to play offense by using credit cards responsibly and getting the most out of them.

When I was traveling to see my fiancee his family in Dubai, I surprised him stay for three nights resort in the desert that could only to be described as 7 star. We had a private villa traditional Bedouin style looking Is it the Dubai desert? private pool and all is food resort were provided. It whole eexperience easily worth it It’s over $2,000 night but i did the whole thing something free with units.

— Nathan Lachenmeier, 29

I recently booked 2 round trip tickets from San Francisco to Italy for a 2 week vacation this fall. Flights were completely free with credit card points.

– Jane Phillips, 30

In the past year, I flew business class to Spain and stayed in luxury hotels for a week, flew to Thailand with my girlfriend, and flew business class to Germany on my mother’s plane for her father’s 80th birthday. I’m also going to use miles to go to Budapest next spring.

– JORDAN PETI, 27:

Most people play it wrong

I have spoken to literally thousands of people who are in debt. Some of them had difficult situations: unexpected illnesses, elderly parents in need of support, unexpected expenses. But frankly, some of them are just playing it wrong. They’ve never spent a weekend reading a personal finance book. They don’t even know how much they owe. Instead of aggressively winning the debt game, they complain. It’s like watching a four-year-old try to play Monopoly, then realize they can’t understand the rules (which they’ve never read), get angry, and flip the board over. I will show you how to win.

When it comes to student loans and credit cards, my goal is for you to stop playing defense. I’ll show you how to play instead of attacking. Make an aggressive plan for student loans and minimize the amount of interest you pay. For credit cards, I squeeze every benefit out of them. Basically, I want the credit card companies to hate you like they hate me.

The best part is how quickly you can change your financial life when you go from defensive to offensive with your money.

In 3 and a half years, what are you? I read the book, I paid $14,000 down payment card debt and $8,000 with student loan debt.

— RYAN HILL, 27 years old

In the year since starting this book, I’ve opened a 401(k) and Roth IRA, understood how they work, and put $7,200 toward my retirement. I also opened 2 credit cards to build my usage and boost my credit score and am a 100 percent dead set customer who pays in full on time every month.

— JEFF COLLINS, 35

I learned how to automate my credit card payments, set up flexible spending, and start investing in index funds. Today I have accumulated over $40,000 in my “net worth” in less than 2 years out of school. Thanks for the advice!

— EMILY BAUMAN, 24

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