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5 Signs that you probably shouldn’t use a credit card…

While credit cards are a convenient way to make purchases and build credit, they’re NOT the right choice for everyone. Due to their spending habits, some people are better off avoiding credit cards altogether.

Are you these people?!

In a nutshell, here are a few reasons why cash might be a safer payment method. 

Here are examples of people who shouldn’t use a credit card.

• People with a history of overspending: Credit cards might be too tempting for people who have a history of overspending or impulse buying. They might use the card for purchases they can’t afford, leading to high balances and interest charges. So ask yourself: Do I have trouble controlling my spending? If you answer yes, you might have difficulty managing a credit card responsibly.

• People with a low income: If you have a lower income or struggle to make ends meet, credit cards might seem like a good backup plan. However, they can do more damage than good. If you’re unable to pay off your balances in full, high-interest rates and fees can quickly add up, making it harder to get out of debt.

• People with a lot of debt: If you already have a lot of debt, adding credit card balances to the mix can be financially overwhelming. Additionally, adding new debt might hurt your credit score – if your credit card balances are high in relation to your credit limits. Rather than open a new account, focus on paying off your existing balances.

• People who can’t pay their balances in full: The longer you carry a balance, the more interest you’ll pay. If you can’t commit to paying off your balances in full each month, it might be best to avoid credit cards.

• People who don’t understand how credit cards work: It’s easy to get into trouble if you don’t understand how credit cards work or how to use them responsibly. Make sure you understand the ins and outs of interest rates, fees, and credit limits.

Credit cards can be a useful financial tool, but they’re not suitable for everyone. If you have a history of overspending, a low income, a lot of existing debt, or you can’t pay your balances in full each month, cash is likely a better option. 

What about you? Are you pro-credit card or pro-cash?!