💳 Why Credit Cards Aren’t Always the Smartest Way to Spend
If you're using a credit card for the points but not paying it off in full every month, you're probably spending more in interest than you're earning in rewards.
That might be hard to hear, especially when we’re constantly told to “use your card for everything” and “rack up those points.” And I totally get that it feels amazing when you’re able to pay for a 5-star hotel without spending a dime!
But if you’re carrying a balance — even a small one — the numbers usually don’t work in your favor.
🧮 Let's do a little math
Say you spend $1,000 on a credit card and earn 2% cash back — that’s $20 in rewards.
But if you’re not paying off that balance in full when it’s due, interest adds up quickly. According to Forbes, the average credit card interest rate is around 25%, which compounds daily. That $1,000 charge could cost you hundreds of dollars in interest over time, depending on how long it takes to pay off — and that’s without adding any new charges.
So while the $20 might feel like a bonus, it’s often just a small distraction from the real cost.
Credit card points can be a great way to get free stuff — if you’re paying in full each month.
If not, they may be keeping you in a cycle that’s quietly costing you more than you think.
🙋‍♀️ I've seen this play out with my clients
When I first started financial coaching, I figured most people wanted to keep using credit cards. I even hesitated to suggest alternatives because I assumed the points were too important, or that people wouldn’t be open to changing something so embedded in our culture.
But what I found was really surprising.
When I brought it up — just gently, as a “Hey, would you be open to using cash or a debit card instead of your credit card?” — most people were open to the idea. A lot of them actually felt relieved.
Some switched to debit cards and immediately felt more on top of things. A few even wanted to try using cash for certain expenses (which really shocked me!).
Now, for my clients with credit card debt, I’m more confident in asking this question up front. And I think this has made me a more effective financial coach and helped me better serve my clients!
❌ Credit card FOMO is real — but not always helpful
There’s so much messaging out there that makes it seem like credit cards are the smart financial tool. I’ve had clients tell me they felt like they were doing something wrong by using a debit card. That they were “missing out” if they weren’t using a credit card to get rewards.
Here’s what I want you to know:
There’s no shame in not using a credit card
Debit and cash are just as valid — and often more helpful if you're working on curbing your spending or paying off credit card debt
There’s definitely no reason to keep doing something that’s making it harder to stay on top of your money, just because everyone else is doing it
🧠Not sure where to start?
If you're carrying a credit card balance and feel like you’re just spinning your wheels, I’d love to help you start moving forward!
I'm hosting a free webinar all about paying off your debt for good. I'll walk you through a simple three-step method to start making real progress on your debt. Whether you’re just starting or you’ve tried a few things before, this webinar will give you tools to take the next step.
💔 Break Up With Your Debt—For Good (Free Webinar!)
đź“… Date: Wednesday, July 9th
⏰ Time: 12:00 PM PT
đź“Ť Location: Online
👉 Click here to register — I’d love to see you there!
