Saturday, November 19, 2011


I've been avoiding credit cards during the past year in an effort to eliminate most of my cards and bring the balances on my two remaining cards to 0.  However, back around the middle of August, I got the idea to use my cash back credit card like a debit card.  All the little things I purchase during the month go on the card, I carry very little cash.  On my paydays, twice monthly, I go online and pay the balance on my card so I have nothing that carries over and charges interest to my account.  So far I've earned about $13 and paid $0 in interest/fees.  While this is not much in earnings, I wasn't earning anything from my debit card purchases, so I'm thinking it's a big improvement.

I wouldn't recommend this strategy to everyone.  In my case, I have a low enough credit limit and enough money to pay off the balance even if I max out the card.  So there is not much risk as far as running up debt and paying outrageous interest rates on charges carried from month to month.  It definitely makes sense for me to use the card in this way.  It's convenient, it's easy, it earns extra cash for me and as long as I pay the balance in full, it costs me nothing. 

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