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Re: Thoughts on credit cards? - January 24th 2021, 01:58 AM

I'm pretty anti-credit card. I dont think they're inherently useless or bad- its a good way to build credit, and they're not problematic for people who have a lot of financial discipline. But its psychologically less painful to use a credit card than cash, which can encourage you to spend more money while shopping. With cash, there's more transparency with what you lose: you see what you're spending when you spend it, and you're encouraged to spend less as a result. With credit, it's not your money, there's a delay with the billing, and you dont lose the plastic after swiping it. I'll drop a link for this study, but there was a study in 2008 that showed that people spent an average of $30 more on Thanksgiving with a credit card than with cash.

During covid it makes sense to have a debit card because there are less germs than with cash. Debit is also better than credit from a psychological standpoint because at least the money is coming from your own account. You won't build a credit score though.
Im aiming to check out of the whole credit/debt system. If I ever buy a house, I'm going to try to buy the whole thing up front after the inevitable next market crash.

https://www.psychologytoday.com/intl...or-credit-card
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