Credit Cards: 3 Rules to Use Them WiselySýnishorn

Rule 2: Never Carry a Balance

Here’s the thing. The key to using a credit card as a tool rather than a way to accumulate debt is to simply pay it off every month.

If you and I do that (and we are using a card without an annual fee) we can use it as a free tool to help us in our financial management.

But there’s a rule among the self-defense crowd that the best way to win a fight is to avoid it at all costs. If using a credit card without carrying a balance is a struggle, then just run and avoid the fight altogether. Use a debit card. Take the credit card out of your wallet and hide it in a closet somewhere. If it’s still a temptation, drop it in the shredder!

When Linda and I got married, this was us. We weren’t following the 1st rule and couldn’t control our spending. So we closed down all our credit cards. We paid for everything with either cash or debit cards. We lived without a credit card for seven years. Once we had more solid financial footing—and matured a bit—we decided to try again. Before we opened an account, though, we made a pact: if we couldn’t pay the balance in full, even one time, we would close it down. It was only after that agreement that we opened a great rewards credit card.

One last thought. I once heard author Jess Connolly say, in reference to a particular habit that she had, that she wasn’t leaving room for God to do a miracle. I think of credit cards without rules in the same way.

Overspending has become a habit for many of us. When we need a little extra, we just charge it and we begin to put our trust in the credit card, rather than God!

But what happens if we draw a line in the sand and decide to put some strict rules on our credit card use?

Is it possible that when we limit ourselves, we see God’s unlimited power at work in our finances?