5 Expenses You Should Avoid Paying with a Credit Card

5 Expenses You Should Avoid Paying with a Credit Card

A credit card may seem like a friend when you’re in a crunch, but misuse of the cards can create a lot of stress or even financial ruin. It’s important that you know when to – and when not to – use your credit cards to prevent a mass of debt that you can’t seem to get out from under.

Read on to learn five expenses that you should never put on a credit card!

1) College Expenses

No one wants to graduate from college with a lot of debt, but credit card debt fresh out of school can be the worst. Avoid placing your college tuition on a credit card, as the interest rates will likely be much higher than you can get with a regular loan through your school or the government.

Check out any and all scholarships offered by your high school, hometown, or the college you will be attending. If necessary, get a part time job to help pay for expenses such as books or gas to and from school, so you aren’t tempted to put it all on a card.

2) Wedding Costs

Similar to college, newlyweds shouldn’t begin life together with an alarming credit card balance. Financial stress is not something you want to create in your first years of marriage. A smaller wedding may not be as extravagant as you wish, but it will relieve you of any possible arguments over the debt you have waiting for you as soon as you return from your honeymoon.

Create a wedding budget, and accept that a smaller wedding may be necessary to avoid the hassle of credit cards. Alternatively, push back the date until your wedding account has enough in it to cover the essentials you want for your big day.

3) Furniture

The “0% for 12 months” credit card offers from furniture stores may seem enticing when you want to redecorate your bedroom or the den, but avoid financing such a large purchase. Sure, you have a year to pay it off, but the odds that you will are slim and no one wants to have such a large debt looming over them when trying to enjoy their new purchase.

4) Vacations

It’s fun to take a break from the real world, but not so much when you return to a large credit card bill. It’s very easy to spend more than you planned when you charge your lodging, food, and attractions. Find ways to save money on your trip rather than introducing more stress into your future.

5) Medical/Tax Bills

Sometimes, serious bills arise that we don’t plan for. A child has a hospital stay, or you miscalculated your taxes and owe the IRS. You may want to reach for your credit cards to settle these debts, but it’s usually not a good idea. Instead, remedy the situation by reaching out to the company you owe money to and setting up a payment plan.

 

 

Be Sociable, Share!

Speak Your Mind

*