Credit cards can be a powerful tool if used correctly, but ONLY if you use them responsibly.
Using credit cards responsibly can help build your credit score, earn you cash back, and get you other rewards options. Unfortunately, the majority of people aren’t paying their credit cards off every month, and it costs them hundreds, sometimes thousands, of dollars per year. Just like compounding interest will grow your army of dollar bills over time, compounding debt will destroy it. The average American owes over $7,000 in credit card debt. You can imagine how that debt will slowly become harder to overcome.
We want you as a Financial Mutant to avoid the trap of credit card debt entirely. Our rule of thumb: If you use a credit card, you HAVE to pay them off every month. If you have trouble using credit cards responsibly, it is best to avoid them entirely.
For more on the ins and outs of credit cards, pros of using them, and pitfalls to avoid, check out this article: “Why Credit Cards Can Be a Dangerous Weapon (or a Powerful Tool).”
