Things we do not put on credit, and definitely do not recommend people doing so, are:
- Shopping, Upkeep, Household Goods, etc.
- Anything else that is tangible or loses value
Our debt came from when we were homeowners (well, we never saw a ‘title’ so technically Chase owned the house not us). From furniture, to home repairs, to car repairs, to emergency incidentals, taxes, etc. But thankfully, the few aforementioned items are things we’ve always agreed to not put on credit. While experiences are a much better investment, in our opinions, than items that are tangible, we really enjoy knowing that we paid cash for all of our travel. In the past, we used to volunteer, so some of those funds were donated funds from others, but none was (then nor now) put on credit.
However, one “best practice” that we do if we “must” use a credit card for any travel related items (plane tickets and hotel), is that we are disciplined enough to have the cash in-hand first, use the credit card to pay for the item, and pay that exact amount immediately to the credit card with cash (the same day the item is purchased with the credit card). An example of needing to do this is when there are insurance benefits for paying for big-ticket expenses with a credit card. It’s also helpful to dispute charges more effectively (than a debit card) if any fraud occurs; although, those situations are few and far in-between. And needing to use one’s credit card for travel for an emergency situation is often a few and far in-between situation as well, but it can happen.
As of now, we will have 1 of our 2 credit cards paid off next month! Although only a 9% interest rate, this card will be closed (already have the letter written in BOLD 30pt font!). And although it’s the oldest card we have, which can have credit score implications, we just want to be free from it. We are so blessed to be learning more about being disciplined, seeking good mentors to help teach us how to improve upon our mindset, and sharing our journey.