Situations When You Shouldn’t Pay With a Credit Card

11322991934_61d5640a33_oCredit card debt was projected to total $900 billion by the end of 2015, with the average US household owing at least $7,813. Having access to credit makes it very easy to pay with a credit card for goods and services, but there are plenty of situations when paying by credit card is really not a wise option.

Reasons Not to Pay by Credit Card

One major reason to be wary of paying with credit cards is when shopping online at unfamiliar sites and retailers. Giving credit card details online can be a security risk leading to theft of credit card details and personal information. You should always check the online security of any websites prior to making online payments. 

There are several more good reasons to avoid paying by credit card, especially if you have a low income or have personal and household debt that’s hard to service. If you use your credit card to shop for items you can’t really afford, you will continually pay interest charges on debts. When your credit card statement always includes interest charges because you use your credit card as your personal lending provider, you have to recognize that any purchases you made actually cost much more than the ticket prices. Of course there are times it’s convenient to use a credit card to pay for goods over several months, but these should be the exception rather than the norm.

Using credit cards at ATMs means you incur charges each time you withdraw cash. ATM charges can be as high as 5 percent for cash withdrawals, making paying the credit card bill even harder to manage.

Many retailers offer discounts for cash purchases. If you can negotiate a better deal by paying cash for products, it makes sense not to pay with a credit card.

Review your personal finances on a regular basis and always use your credit cards wisely.

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