Perhaps I should start this post with a disclaimer. I am going to talk about credit cards. Personally, I have a love – hate relationship with the convenient little pieces of plastic. If you are able to pay the balance on your credit card (in full) each month…continue reading. If not, this is not the post for you.
Around this time last year I made a decision to pay all of my bills with my credit card. This included my auto insurance, my utility bills, my cable, internet, phone…etc…). In fact, I used my card to buy everything – groceries, clothes, food, etc… and I still do.
Do you have a home-based or small business? Does your husband have business expenses? I also earned a considerable amount of “cash back” simply by putting all of my business expenses on my card by using my card as my primary business card.
I almost hyper-ventilated the first time I got my $1000+ credit card bill in the mail. I had to constantly remind myself that these were the things I would have written checks for anyway. Okay, breathe now.
The reason I decided to use my card for virtually *everything* (including my morning lattes) was because of a 1-2% cash back bonus the card offered. I figured, as long as I am not paying late fees or finance charges, the little end of the year bonus would be a nice treat.
While I love my cash back bonus, you may enjoy travel rewards, airline miles, student rewards, fuel certificates, new car rewards, shopping rewards, or even the ability to donate to your favorite charities.
Last month, I opened my credit card statement and was thrilled when I saw that $250 was credited to my account as my yearly bonus. That’s nearly a months’ worth of groceries, my monthly student loan bill, or a car payment. It was pretty exciting.
Remember that disclaimer I made earlier about not reading this post if you don’t (or can’t) pay your balances in full each month? I meant it. If you want to save between 1% and 5% on all of your purchases (or earn miles…points, etc…) credit cards are wonderful. If you can’t pay off your balances cut them up. It absolutely defeats the purpose when you pay between 15% and 20% in interest each month.
Do you pay your bills using a credit card? Tell us your thoughts in the comments section.
Related Reading:
Credit Cards and Rewards
Choosing the Right Credit Card