Subtitles section Play video Print subtitles 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. Hey! NBC News viewers, thanks for checking out our YouTube channel. Subscribe by clicking on that button down here and click on any of the videos over here to watch the latest interviews, show highlights, and digital exclusives. Thanks for watching!