Credit cards certainly have their place and allow people to make simple purchases without carrying around huge amounts of cash. However, there are certain expenses that should not be paid for on credit.
- Weddings. As weddings get bigger and bigger, the pressure to have an extravagant day filled with lavish details can be immense. While it is certainly a special day for the bride and groom, starting off your marriage with a pile of credit card debt is not healthy. Spend within your means and avoid paying for your wedding on credit.
- College. Putting your college education on credit can be an expensive mistake. Instead, find another way to pay. Whether it’s paying your parents back, finding a low-interest student loan, securing a scholarship, or working through school, there are other ways to fund your college tuition.
- International purchases. When traveling abroad, it’s best to pay in cash. Most major credit card companies will charge a foreign transaction fee for each purchase you make overseas. These fees are usually around three percent and can add up very quickly.
- Lottery tickets. If you think no one is watching what you purchase, think again. Credit card companies review customers’ purchases and don’t look fondly on gambling or financial irresponsibility. While buying lottery tickets is your choice, it’s best to do it with cash.
By avoiding adding certain expenses on your credit card, you can make smarter purchase decisions and limit damaging mistakes. Next time you pull out your plastic, think about what you’re buying and whether it’s best to pay with cash.
