Why You Should Avoid Credit Cards

There are many reasons why you should avoid credit cards especially if you are trying to get out of debt. Below you will learn our top five reasons why credit cards can get you into trouble.

Although credit cards are good to have in case of an emergency you can get yourself into some serious debt. Find out these top reasons as to why you should AVOID having a credit card.



With the cost of living constantly increasing and everything being so expensive, sometimes using a credit card can seem like the answer to your problems. However, credit cards can do much more harm than good. It is easy to get sucked into department store credit cards when you are making a purchase. The clerk always has an amazing deal to save 20% off your entire order if you sign-up. Even though it sounds great at the time to save that money there are various ways that it can harm you in the long-run and you will be paying back double the amount.

I am not saying all credit cards are bad. Obviously they are nice to have in the case of an emergency or to rent a car, but many times it is just too tempting to just charge it, so here are 5 important reasons why you should avoid credit cards.


Why Should I Avoid Credit Cards?

1. Living within a budget is a great way to really get ahead financially and not carry debt. Using a credit card can totally blow your budget. It will add an additional bill every month that can easily bring you over your monthly budget. Be sure to use our Monthly Budget Spreadsheet to help you gain control of your finances.

2. It can set a bad example for your kids. When kids see you paying for purchases with a credit card, it is easy for them to perceive it as free money. They do not get the concept that you buy now and pay later. Use cash and teach your children what a budget is and why it is so important.

3. With interest rates and hidden fees you can easily end up paying twice as much compared to if you paid with cash. Especially when they can tack on late fees on top of your monthly payment.

Why to avoid credit cards

4. They can be a major temptation. It will be hard to say no to big purchases when you know you can put them on a credit card. This is an easy way to put yourself in a financial hole.

5. When you build up credit card debit it will lower your credit score and can end up costing you in the long run. A lower credit score can affect how much you pay for insurance and even prevent you from renting an apartment.

Using credit cards is an easy way to get into debt, spend more money and add financial stress to your life.

Further Reading:

Improve Your Credit Score

Creating a Budget

Stop Living Paycheck to Paycheck

Tips for Buying in Bulk

Also, make sure you checkout the Frugal Fanatic Facebook page and follow us on Pinterest for DIY projects, recipes, money saving tips and more. When you are tempted to use or apply for a credit card take a look at our 5 reasons you should avoid credit cards to help prevent yourself making a bad decision.

This Post Has 4 Comments

  1. Credit cards can be a slippery slope! I do tend to use them to our advantage … for example … when my daughter had her wisdom teeth taken out, there wasn’t a cash discount so we put it on our card to earn rewards and then paid it off! We often use the rewards (Nordstrom Rewards) as gifts! It takes a lot of determination to use them the right way though …

  2. I disagree with this kind of.

    I totally agree you should never buy stuff that you can’t afford because you have a credit card. However, we use credit cards with almost every purchase throughout the month. We also pay it off at the end of the month. It has helped increase our credit score tremendously faster than when we were just using cash/checks. As an added bonus, we also use cards with a great rewards points, so we do earn a lot of “free” stuff buy almost always using our card.

    However, this is a really great list for someone who is not disciplined enough to live within a budget or who has gotten themselves in some trouble using credit cards before. 🙂

    1. I love the idea of using a credit card to get rewards. As long as it can be paid of each month you can definitely benefit from the points and/or cash back!

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge