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  • So, you're at the checkout counter and you're wondering:

  • "Should I pay for this with credit?

  • Or should I just pull out some cash?"

  • Well, there are definite benefits to using a credit card.

  • You can earn perks.

  • You can earn rewards.

  • You can earn miles.

  • You can earn cash back.

  • The problem with that is that some people have trouble keeping a lid on when they use plastic.

  • There has been a lot of research that shows we spend more with credit than we do with debit,

  • we spend more with debit than we do with cash,

  • and that's because using a credit card feels like it's not real money.

  • Because it's not.

  • Because you are borrowing somebody else's money.

  • And that can cost you a lot in interest if you don't pay it back right away.

  • If you find that you are susceptible to spending too much money because you are putting it on your credit card,

  • then you want to use those credit cards only for larger purchases that you know that you will be paying off over time.

  • Keep in mind, you want to build a strong credit record.

  • It affects the amount that you pay on interest when you borrow money to buy a house or borrow money to buy a car.

  • It affects how much you pay for homeowners and auto insurance, whether you can rent an apartment.

  • Some employers even check credit history these days,

  • and so it's worth your time to make sure that you are maintaining a good credit history and a good credit score.

  • Bottom line : a credit card is an important financial tool to have in your arsenal,

  • but like all tools, you want to use it wisely.

  • And if you can't use it wisely, you want to find something else.

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So, you're at the checkout counter and you're wondering:

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