I Used a Debit Card for Everything for a Year. Here’s the Money I Lost
My Year of Zero Rewards and Maximum Risk
I was proud of using my debit card for everything. No debt! I thought I was so responsible. I spent about $1,500 a month on groceries, gas, and bills. At the end of the year, I sat down with a friend who used a simple cashback credit card for the same expenses. He had earned over $350 in rewards, just for buying things he was going to buy anyway. I had earned zero. Even worse, when a fraudulent $200 charge hit my account, the actual money was gone from my bank for a week while they investigated. I lost out on free money and took on all the risk.
The “Plastic Square” in Your Wallet: The One Thing Banks Don’t Want You to Know
Your Debit Card is Their Profit Machine
I always thought my debit card was just a convenient tool. Then I spoke to a friend who worked at a bank. He explained that banks love when you use your debit card. Why? Because when you use it, you’re more likely to miscalculate your balance and overdraw your account, triggering a hefty $35 overdraft fee. It’s a huge profit center for them. They also know you’re not building a credit history, which keeps you from qualifying for better loans from their competitors later on. The card they give you for free isn’t a gift; it’s a tool designed to benefit them.
Explain “Debit vs. Credit” Like I’m 5 Years Old (Using a Lemonade Stand)
The Jar of Coins vs. The Trusty IOU
Imagine you have a lemonade stand with a jar full of coins you earned. A debit card is like reaching directly into your jar to pay for something. The coins are instantly gone. A credit card is like your rich Uncle Barry saying, “I’ll pay for that for you. Just give me an IOU note.” At the end of the month, you give Uncle Barry the coins to pay back all the IOUs. If you pay him back on time, he’s happy. If you don’t, he starts charging you extra. Using debit is spending your money. Using credit is spending his money temporarily.
My First Paycheck: The Debit Card Mistake That Cost Me $50 Instantly
The Most Expensive Pizza I Ever Bought
I got my first paycheck for $500 and felt rich. That weekend, I took my friends out for pizza, a $60 bill. I swiped my debit card without a thought. The next day, I checked my account and my heart sank. The paycheck hadn’t cleared yet, even though the deposit was “pending.” My account balance was only $20 when I swiped. The bank paid the pizza place but charged me a $35 overdraft fee. I had also forgotten about my $15 Spotify charge. That single pizza ended up costing me almost $100. It was a brutal lesson in “pending” versus “available” balance.
Why Your Parents’ Advice About “Cash is King” is Now Dangerously Wrong
The Invisible Tax on Using Only Your Own Money
My dad always told me, “If you can’t pay for it in cash, you can’t afford it. Avoid credit cards.” It’s responsible advice from a different era. In today’s digital world, that mindset is costly. When you only use cash or debit, you’re invisible to the credit system. You build no credit history. So when you need a car loan or want to rent an apartment, you have no proof you’re financially trustworthy, leading to rejections or terrible interest rates. Not using credit isn’t just avoiding debt; it’s avoiding the key to your entire financial future.
The “Training Wheels” Theory: Is a Debit Card Keeping You Financially Immature?
I Rode My Financial Tricycle for Too Long
For years, I exclusively used a debit card. I thought it was the ultimate training wheel for managing money—I couldn’t spend what I didn’t have. But training wheels are meant to come off. I never learned the essential skills of tracking spending to pay a future bill, budgeting for a grace period, or leveraging rewards. I was just reacting to my balance. Getting my first credit card and using it like a debit card—paying it off every week—was like finally taking the training wheels off. It forced me to be proactive and mature with my money, not just reactive.
I Thought Debit Meant “My Money.” I Was Wrong. Here’s Why
It’s Actually “The Bank’s Money That They Owe Me”
I always thought the money in my checking account was mine, sitting in a little digital vault. A hacker proved me wrong. They got my debit card number and drained $800 from my account. The money was gone. I called the bank, panicked. They explained they would investigate. For two weeks, I couldn’t pay rent because my “money” wasn’t there. I realized the money in a bank isn’t mine; it’s a liability the bank owes me. When a credit card is hacked, it’s the bank’s money that’s stolen. When a debit card is hacked, it’s your access to your money that’s gone.
The Single Scariest Word on Your Bank Statement (And How to Avoid It)
It’s Not “Fraud.” It’s “Overdraft.”
I checked my bank statement and saw the word “Overdraft.” My stomach dropped. I had bought a $7 coffee, but my account was lower than I thought, so the bank charged me a $35 fee for the “convenience” of covering my coffee. That word represents a penalty for mismanaging your own money. The easiest way to avoid it? Use a credit card for daily purchases. If you miscalculate and try to spend more than your credit limit, the card is simply declined. No fee, no penalty. It’s a safety net that a debit card just doesn’t have.
Unboxing Your First Debit Card: The 3 Rules You Must Follow Immediately
Your New Card’s Quick-Start Guide
I got my first debit card at 18 and felt like a real adult. I almost made three huge mistakes. Rule one: Sign the back immediately. An unsigned card is an open invitation for thieves. Rule two: Set up account alerts. I set my banking app to text me for any purchase over one dollar. This isn’t being paranoid; it’s an instant fraud detection system. Rule three: Do not save the card info in your browser or on shopping sites. The convenience is not worth the risk of being hacked. These three small steps are your first line of defense.
Unboxing Your First Credit Card: The terrifying responsibility nobody talks about
This Little Plastic Square Can Build or Burn Your Future
When my first credit card arrived, I felt powerful. The bank had trusted me with a $1,000 limit! Nobody told me how terrifying that should be. It wasn’t free money; it was a high-interest loan I could take out instantly. It was a tool that could build my credit score, earning me better rates on future cars and homes. Or, it could bury me in debt that would take years to escape, wrecking my financial reputation. That piece of plastic wasn’t just for buying things; it was for building the foundation of my entire adult life, for better or for worse.
The “Free Money” Myth: How a Credit Card Almost Ruined My First Year of College
My $500 Limit Felt Like a Scholarship
I got a student credit card my freshman year with a $500 limit. I told myself it was for emergencies only. Soon, “emergency” became late-night pizza. Then it was a new video game. Then concert tickets. I figured I’d pay it off later. But with an 18% interest rate, my balance ballooned. That $500 of “free money” quickly turned into a $700 debt that felt impossible to pay off with my part-time job. It was a harsh lesson that a credit limit isn’t a gift; it’s a trap waiting for you to lose focus.
The Day My Debit Card Was Declined for a $3 Coffee (And the Humiliating Lesson I Learned)
Public Failure at the Cafe
I was on a date and went to pay for our two coffees. Total was less than six dollars. I confidently swiped my debit card. Declined. I froze. I knew I had money in my account. I swiped again. Declined. The barista stared. My date stared. It was so embarrassing. I later learned the gas station I visited earlier had put a $75 “hold” on my account, making most of my balance unavailable for 24 hours. A credit card would have just absorbed the hold against its limit. My debit card locked up my actual cash.
If Your Bank Account is a Jar, Your Debit Card is a Hole. Here’s How to Plug It.
My Money Was Leaking and I Didn’t Even Know It
Think of your checking account as a jar of water. Every time you swipe your debit card, you poke a hole in the jar and some water leaks out. The problem is, you’re poking dozens of holes a month with subscriptions, coffees, and lunches. It’s impossible to track all the leaks in real time. The solution is to plug the hole. I stopped using my debit card for anything. Instead, I use a credit card and pay the bill from my “jar” once. This turns dozens of confusing leaks into one single, predictable transaction I can plan for.
The Only Chart You Need to See to Understand Debit vs. Credit in 60 Seconds
A Picture That’s Worth a Thousand Dollars
My friend couldn’t grasp why I preferred credit over debit. So, I drew a simple chart. On one side, “Debit Card.” I drew arrows pointing to it labeled: “Your Money at Risk,” “Zero Rewards,” “Builds No Credit,” and “High Overdraft Fees.” On the other side, “Credit Card (paid in full).” I drew arrows labeled: “Bank’s Money at Risk,” “Cashback & Points,” “Builds Credit Score,” and “Fraud Protection.” Seeing the benefits visually laid out next to the risks finally made it click for him. One side helps you; the other helps the bank.
I asked 100 people if they knew how their debit card really works. 99 failed.
The Misinformation Is Everywhere
I did an informal poll among my friends and coworkers. I asked, “When you use your debit card, does the money come out of your account instantly?” Almost everyone said yes. They were all wrong. When you swipe, the transaction is authorized, but the money doesn’t actually leave your account for a day or two during a process called “settlement.” This lag time is why your “available balance” is often a lie and how people accidentally overdraw their accounts. People are using a tool every single day without understanding its most fundamental, and riskiest, feature.
“But it’s my own money!” – The single most expensive mindset for a new earner
Why Being “Responsible” Cost Me
This was my mantra for years. “I’ll only use my debit card because it’s my own money. I’m being responsible.” This mindset was incredibly expensive. By using only my own money, I gave up hundreds of dollars in credit card rewards. I gave up robust fraud protection, putting my cash at risk. Most importantly, I gave up the chance to build a credit history. When I finally needed a loan, my “responsibility” meant I looked like a ghost to lenders. Using a credit card isn’t about spending money you don’t have; it’s about leveraging the bank’s money to protect and build your own.
The Police Officer’s Warning: Why They Prefer You Use a Credit Card for Gas
A Hotspot for Skimmers
I was filling up my gas tank and a police officer pulled up next to me. He noticed I was using my debit card. He politely said, “You know, you should really use a credit card at the pump.” He explained that gas pumps are one of the most common places for thieves to install “skimmers”—devices that steal your card information. If your debit card is skimmed, they can drain your bank account directly. If your credit card is skimmed, they’re only stealing the bank’s money, and you’re not liable. It was simple, powerful advice I’ve followed ever since.
Your Debit Card’s Secret Identity: It’s Not Just for Spending
The Key to a Global Money Network
I thought my debit card was just for buying stuff. Then I was traveling in Europe and lost my wallet. I was panicked. But I had my debit card number written down. I called my bank, and they explained my debit card was also the key to getting emergency cash. I could go to a partner bank, show my ID, and use my debit card account to get a cash advance. It’s not just a spending tool; it’s your connection to the entire global ATM and banking network, a crucial lifeline when you’re in a jam.
How a $10 Credit Card Purchase Can Change Your Financial Future Forever
The Most Important Netflix Bill I Ever Paid
When I got my first credit card, I was terrified of using it. To start building my credit history, I put just one small, recurring bill on it: my $10 monthly Netflix subscription. I set up autopay to pay the card’s balance in full from my bank account each month. That single, tiny transaction, paid on time every month, began generating a positive payment history. A year later, that history was enough to get my first credit score. That simple $10 purchase was the first stepping stone to qualifying for my own apartment and a car loan.
The “Lag Time” Trap: How Your Debit Card Balance Lies to You Every Day
The Ghost of Purchases Past
I checked my banking app. It said I had $120 available. Great. I went out and spent $80 on groceries. The next morning, I woke up to an overdraft notification. What happened? A $50 debit card purchase I made three days ago finally “settled” and came out of my account overnight, right before the grocery charge hit. My balance was a lie. It didn’t account for the “ghosts” of my past purchases that were still floating in the system. A credit card avoids this trap entirely; your spending just adds to a balance you pay later.
What Happens When You Die? The Shocking Difference Between Your Debit and Credit Balances
A Morbid but Important Distinction
My friend’s father passed away, and he had to handle the finances. The dad had a $5,000 credit card balance. The credit card company can file a claim against the estate, but my friend and his family were not personally responsible for that debt. In contrast, the dad had overdrawn his debit account by $200 before he died. The bank was able to pull that money from a linked savings account to cover the debt. Credit card debt is unsecured. Debit card debt is directly tied to your assets, a morbid but important distinction.
The 30-Second Test to Decide if You’re Ready for a Credit Card
A Simple Budgeting Challenge
My younger sister asked if she was ready for a credit card. I gave her this test: “For the next month, use your debit card for everything. But, keep all your receipts in a jar. At the end of the month, before your next paycheck hits, add up all the receipts. Is there enough money in your bank account to cover that total?” If the answer is yes, you’re living within your means and can handle paying a credit card bill. If the answer is no, you’re not ready.
I tried to live without a bank card for a week. It was a disaster.
The Cash-Only Experiment
I decided to try a “cash-only” week to see if I could do it. It was a nightmare. I couldn’t buy my train pass from the automated kiosk. I couldn’t order a pizza online because they didn’t accept cash on delivery. Renting a movie required a card on file. Trying to pay for groceries with a big pile of bills felt awkward and slow. The modern economy is built on plastic. While being mindful of spending is great, trying to operate without a card is less about being responsible and more about making your life incredibly inconvenient.
The Psychology of the “Swipe”: Why Debit and Credit Feel Different to Your Brain
Instant Pain vs. Future Pain
Scientists have studied this. When you pay with a debit card, your brain registers it as “pain.” The money is gone now, and it feels like a real loss. When you pay with a credit card, the pain is delayed. You’re not losing anything at that moment; you’re just creating a future obligation. This is why it’s so much easier to overspend on a credit card. Recognizing this psychological trick is the first step. I treat my credit card like a debit card, checking the balance daily to bring that “future pain” into the present.
My Friend Said, “Credit Cards are a Scam.” I Showed Him This One Thing.
The Power of Purchase Protection
My friend bought a new, $400 pair of headphones with his debit card. A week later, they stopped working. The store had a “no returns” policy. He was out of luck. I had bought the same pair with my credit card. My card has “purchase protection,” so I called the bank, explained the situation, and they refunded my money completely. I showed my friend my refund email. That’s not a scam; it’s a powerful consumer protection that you only get when you use the bank’s money instead of your own.
The Hidden Fees in Your “Free” Debit Card Account
My “Free” Account Cost Me $100 Last Year
I thought my student checking account was free. Then I actually read the fine print. There was a $5 monthly fee if my balance dropped below $500. There was a $3 fee for using an out-of-network ATM. And of course, the big one: a $35 overdraft fee. Last year, those little fees added up to over $100. My “free” account was only free if I followed their rules perfectly. It was a lesson in understanding that in banking, “free” often comes with a lot of expensive conditions.
Why Using a Debit Card Online is Like Leaving Your Front Door Unlocked
A Direct Key to Your Bank Account
I bought a shirt from a sketchy-looking website using my debit card. Two days later, my bank account was empty. A hacker had gotten my card number and had a direct line to all my cash. If I had used a credit card, the hacker would have only had access to the bank’s money, and my liability would be zero. Using a debit card online hands a potential thief the keys to your front door. Using a credit card online just gives them the keys to a rental car—it’s an inconvenience for the rental company, but your house is still safe.
The Real Cost of “Convenience”: A Debit Card Horror Story
My Vacation Was Almost Ruined
My friend and I went on a trip. He used his debit card to rent a car. The rental agency put a $500 “hold” on his card. This wasn’t a charge, but it made $500 of his actual money unavailable to him. For the next three days, he couldn’t afford meals or activities because his cash was locked up, even though he hadn’t spent it. I used my credit card, and the hold just went against my credit limit, leaving all my actual cash free. His “convenience” almost stranded him.
From Zero to Hero: How My First Credit Card Taught Me to Budget
It Forced Me to Look Ahead
With a debit card, I only ever looked at my current balance. I was always looking backward. Getting a credit card forced me to look forward. I had to track my spending throughout the month, knowing a bill was coming. I created my first real budget, allocating money for my future credit card payment. It shifted my entire mindset from “How much do I have right now?” to “How much will I owe at the end of the month?” It was the tool that finally taught me how to be a proactive, responsible adult with my money.
The “Grace Period”: The Magical Credit Card Feature No One Explains Properly
A Free, Short-Term Loan
I used to think that the second you bought something with a credit card, you started paying interest. That’s not true. There’s a magic window called the “grace period.” It’s the time between when your billing cycle ends and when your payment is due. If you pay your entire statement balance by the due date, you pay absolutely zero interest on your purchases. You’re essentially getting a free, 21-to-25-day loan from the bank on everything you buy. This is the secret to using a credit card without it costing you a single penny.
I paid my rent with a credit card for a month. Was it genius or insanity?
The Perils of the Processing Fee
My landlord let me pay my $1,500 rent with a credit card. I thought I was a genius. I’d get a ton of cashback rewards! Then I saw the fine print: there was a 3% processing fee. That meant my rent payment would actually cost me an extra $45. My credit card only gave me 1.5% cashback, which was just $22.50. I would have paid an extra $22.50 for no reason. It was a crucial lesson: using a credit card for big purchases is only smart if the rewards you earn are greater than the fees you pay.
The Anatomy of a Credit Card Statement: A Guided Tour for Terrified Beginners
It’s Simpler Than It Looks
My first credit card statement looked like a scary legal document. But there are only a few key numbers. “Statement Balance” is what you spent last month. “Minimum Payment” is the small amount the bank lets you pay to keep them happy (it’s a trap!). “Due Date” is your deadline. The most important part is the transaction list. I go through it every month, line by line, to make sure there are no fraudulent charges and to see exactly where my money went. It’s not a bill to be feared; it’s a report card on your spending.
The “Minimum Payment” is a Trap. Here’s the Math to Prove It
The Most Expensive Money You’ll Ever Owe
I had a $1,000 balance on my credit card with a 20% interest rate. The minimum payment was only $25. I thought, “Great, I can handle that!” Then I used an online calculator. If I only paid that $25 minimum payment each month, it would take me over five years to pay off the debt, and I would pay an extra $600 in interest. The original $1,000 purchase would end up costing me $1,600. The minimum payment isn’t a helpful feature; it’s a trap designed to keep you in debt for as long as possible.
How to Use a Credit Card Like a Debit Card (The Only Safe Way for Beginners)
The Hybrid Method That Keeps You Safe
When I got my first credit card, I was scared of overspending. So I created a hybrid system. I used my credit card for all my purchases to get the rewards and protection. But every single night, I would open my banking app and transfer the exact amount I spent that day from my checking account to my credit card account. This meant my checking account balance always reflected my true spending, just like a debit card, but I was still reaping all the benefits and building my credit score. It’s the best of both worlds.
The Moment I Realized My Debit Card Had Zero Perks
My Friend Got a Free Flight to My Wedding
I was planning my wedding and my friend, who lives across the country, said he was coming. I asked how he could afford the $400 flight. He said, “I’m using my credit card points. The flight is free.” He explained that he had earned all those points just by paying his regular bills and buying groceries with his rewards card. At that moment, I looked at my debit card. It had never given me a single point, a single cent of cashback, or a single perk. I had been leaving free money on the table for years.
Your Credit Score: The Invisible Number That a Debit Card Ignores
Your Financial GPA
I never thought about a “credit score” until I tried to rent my first apartment. The landlord ran a credit check and told me I had “no file.” I had always used a debit card, so in the eyes of the financial world, I didn’t exist. Your credit score is like a financial GPA. It tells lenders how responsible you are. Using a credit card, even for small purchases, and paying it off on time is how you build that score. A debit card, no matter how responsibly you use it, does absolutely nothing to prove your creditworthiness.
I asked a millionaire which card they’d give their 18-year-old child. The answer surprised me
It Wasn’t a Fancy Metal Card
I assumed a wealthy person would start their kid off with a fancy, high-limit credit card. I was wrong. The millionaire I asked said, “I’d start them with a secured credit card.” A secured card requires you to put down a small cash deposit, usually around $200, which then becomes your credit limit. It’s impossible to overspend, but it still reports to the credit bureaus, building your credit history. It’s the safest possible way to learn the mechanics of using a credit card without any of the risk. It’s a smart start, not a flashy one.
The Debit Card “Hold”: How a Hotel Can Lock Up Your Money for a Week
My Cash Was Held Hostage
I used my debit card to check into a hotel for a two-night stay. The room cost $300. But the hotel put a $500 “hold” on my card to cover potential incidentals. I didn’t realize this meant that $500 of my actual cash was frozen in my bank account. Even after I checked out, the hold remained for four more days. I couldn’t access my own money. If I had used a credit card, the hold would have just been against my credit limit, leaving my actual cash untouched.
Is it Ever Okay to Use Your Credit Card at an ATM? (The $50 Mistake)
The Most Expensive Cash in the World
I needed cash fast and my debit card was at home. I thought, “I’ll just use my credit card at the ATM.” This was a massive mistake. I took out $100. First, there was a $5 ATM fee. Then, my credit card company charged a $10 “cash advance” fee. Worst of all, unlike purchases, cash advances have no grace period and start accruing interest immediately, at a sky-high rate of 25%. That $100 in cash ended up costing me almost $150 by the time I paid it all back. Never, ever do this.
The Ultimate Beginner’s Wallet: The Only Two Cards You Really Need
Keep It Simple, Keep It Smart
When you’re starting out, your wallet doesn’t need to be complicated. All you really need are two cards. First, a simple, no-annual-fee rewards credit card. Use this for every possible purchase—gas, groceries, online shopping—to get the rewards and protection. Second, your debit card. Its only job is to get cash out of an ATM from your bank, for free. Don’t use it for purchases. By assigning each card one specific job, you maximize your benefits and minimize your risks. It’s the simplest and smartest setup for any beginner.
I Watched My Friend Get into $10k of Debt. Here’s the First Mistake He Made.
The Spiral Started with a Single Purchase
My friend got his first major credit card with a $10,000 limit. His first mistake wasn’t a huge shopping spree. It was buying a $1,200 laptop that he “would pay off over a few months.” But he only made the minimum payments. Then came a new TV. Then a vacation. Because he had already broken the rule of paying his balance in full, it became easier and easier to justify carrying more debt. That first decision to not pay off the laptop immediately was the psychological slip that started the entire $10,000 downward spiral.
The “Auto-Pay” Debate: Your Debit vs. Credit Card Lifeline (or Anchor)
A Double-Edged Sword
I set up auto-pay for all my bills from my debit card, thinking I was being responsible. But one month, a big bill hit a day before my paycheck, and my account overdrew, costing me $35. It felt like an anchor. I switched my strategy. Now, all my bills auto-pay to my credit card. My credit card then auto-pays its full balance from my bank account on the due date. This creates a buffer. My bills always get paid on time, but I only have one, predictable debit from my account each month.
How to Talk to Your Bank About Getting Your First Credit Card
It’s a Conversation, Not a Confrontation
I was nervous to ask for my first credit card, thinking they would judge me. I went into the bank and instead of just asking for a card, I said, “I’ve been banking here for two years, I have a steady part-time job, and I’m interested in starting to build my credit history. What starter or secured card would you recommend for me?” By showing I was thinking about it responsibly and asking for their advice, it became a helpful conversation. They were happy to help me find a card with no annual fee that fit my needs.
The Emotional Rollercoaster of Your First Credit Card Bill
From Buyer’s Remorse to a Rush of Pride
My first credit card bill arrived and my heart pounded. Seeing all my purchases from the month listed in one place—$450—was a shock. It felt so much more real than a bunch of small debit card swipes. That was the moment of “buyer’s remorse.” But then came the second part of the rollercoaster. I had budgeted for it. I went online and paid the entire $450 balance in full. Seeing my balance drop to zero gave me an incredible rush of pride and control. I was a responsible adult who had successfully used the system.
“Just use your parents’ card” – Why this is the worst financial start possible
Building Their Credit, Not Yours
In college, my friend’s parents let him use their credit card for gas and groceries. He thought it was great. The problem was, when we graduated, he had no credit history of his own. All those years of responsible spending had only boosted his parents’ credit scores. He couldn’t get approved for his own apartment because, financially, he was a ghost. While it may seem easier, using your parents’ card is like having them lift the weights for you at the gym. You’re in the building, but you’re not building any muscle.
The simple power of paying your credit card bill the same day you spend
Bringing the “Pain” Back to Plastic
The danger of a credit card is that it delays the financial “pain” of a purchase. I found a simple way to hack this. I use my credit card to buy a $50 pair of jeans. As soon as I get home, I open my banking app and make a $50 payment to my credit card from my checking account. This makes my credit card feel exactly like a debit card—the money is accounted for immediately. It stops my balance from ever getting out of control and ensures I’m always living within my means while still getting all the rewards and protection.
What “Liability Protection” Actually Means (And Why Your Debit Card’s Sucks)
A Tale of Two Frauds
My credit card got hacked for $500. I made one phone call, said “that’s not mine,” and the bank removed the charge instantly. The bank’s money was stolen. My friend’s debit card got hacked for $500. He made a phone call. The bank said they would “investigate,” which could take ten business days. His actual cash was gone from his account during that time, making him unable to pay his bills. That’s the difference. Credit card liability protection is robust and immediate. Debit card protection is slow, and it’s your money that’s on the line.
A visual experiment: What $1000 of debt actually looks like over time
The Leaky Bucket of Interest
Imagine a bucket holding 1,000 gallons of water. This is your debt. Your minimum payment is a small cup you use to scoop water out. But every month, interest is a leaky faucet dripping water back into the bucket. If your cup is only slightly bigger than the drip, you’ll be scooping for years and years just to get back to empty, wasting gallons of water along the way. Paying only the minimum is a frustrating, losing battle against a constantly dripping faucet.
My goal was to never get a credit card. Here’s why I caved, and why I’m glad I did.
My Fear Was Costing Me Money
I was terrified of credit cards. I had seen friends get into debt and swore I would only ever use debit. I caved when I needed to rent a car for a weekend trip, and they wouldn’t accept a debit card for the reservation. I reluctantly got a secured credit card. That’s when I realized my fear was misguided. By using it for small purchases and paying it off immediately, I wasn’t going into debt. I was building a credit score, earning rewards, and protecting my cash. My fear wasn’t saving me; it was holding me back.