Does Using a Credit Card Demonstrate Financial Literacy?

[alastantiger]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

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[Charles-Tim]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Work hard and smart and be able to meet your needs is all what it takes. I subscribe to Netflix, YouTube Premium and DSTV. I pay some  bills with credit card but I am not in dept since many months ago.

If you are in my country and you queue for 30 minutes to 1 hour before you are able to collect money in ATM machine, or you queue in the bank, you will be thinking of how you can avoid these delays. Using PoS for shopping has made this simple. You are literate, you know how it works and if you ou are avoiding scam, life is made easier.

Although, at times, I just do online transaction with the bank app, but that is not still cash.

[Lucius]

I would say that in some situations a bank card can be very useful, such as paying for some online services for which you cannot even use cash, or for online shopping from abroad. Therefore, I would not conclude that those who use cash are more financially literate than those who use cards, but that it all boils down to how much an individual can control himself from excessive spending, especially from buying things we don't really need.

Cards and cash have their advantages and disadvantages, and in some countries, such as Sweden, there is almost no cash at all because everyone uses cards, and more and more shops are appearing where there is no possibility to pay with cash or even with a card directly, but with the help of a special account that is connected to your bank account, and then at the entrance/exit the cameras scan you and charge you for each product you put in the basket.

No matter how someone pays, the most important thing is not to spend more than we earn (if at all possible).

[Beparanf]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

This is not an entirely true because not all credit card user is in the huge pile of debt. Some is using cash for investments and investments while generating profit more than the interest rate charge by credit card company. It’s true that the majority of credit card owners is reckless on spending but credit card is not entirely bad if you are using your cash for another things that generate income.

Even huge company ask loans for their businesses if they want to expand since loans/credits offer extra cash by just paying minimal interest rate which they can be paid easily from the business profit in long term.

[o48o]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Well physical money can be easier to grasp and put those numbers into perspective when they are in your hand and aren't just imaginary numbers.

It once worked for me, but i changed it to excel budjet spreadsheet that i made for myself.
It's way more effective as most of the time you don't see all the cash money money you have, nor it would be wise to take them all out in public and count.

Most of the time rest of your money is still just in your pocket and it's, while bank account balance is easy to check discreetly.

And what comes to credit cards, you can just change them to debit cards so you won't go over your budget as easily.

[pinggoki]

If we're talking about how you pay your stuff and depending on how you do it will demonstrate how financially literate you are then the absolute answer in my opinion would be that you know when to use your cash and credit card and you also know how to maximize the use of credit card bonuses without the hassle of being in debt because of using it since you also know how to pay for it in time. The very act of using doesn't demonstrate financial literacy because of the factors that I've said before regarding credit cards might not be existing in your routine.

[Yamane_Keto]

I am one of the people who prefer to pay with cash. The feeling of counting the money manually causes greater psychological damage than a single click. If we say that you want to spend $2,000 on shopping, as soon as you start buying, you will find that this amount is exaggerated and that I must pay less, but when paying through banking applications. Or credit cards It's like I don't spend a lot of money. Therefore, it is not a matter of ignorance or illiteracy more than it leads to more spending.

[Casdinyard]

Credit cards could open new doors for you or close the ones that you already got beforehand. It could be your opportunity for better expansion and an ally for when you need that extra cash, but I find that some people think of credit cards as an extension of their finances, which shouldn't be your logic. For one, you're practically borrowing money from the bank when you take out a loan using your credit card, that's for sure. You also have to keep in mind that you're paying interests on top of the loan capital that you requested.

Some people got a higher credit score and was able to live a full financial life thanks to credit cards, those who did not and failed miserably are 8 feet deep in debt and it's only piling up. Financial literacy has to come before credit cards, not the other way around.

[Lida93]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Can you permit me to talk on this using a gamblers perspective.  For a gambler not to over spend exceeding his bankroll in the way he had planned it he just got to apply self discipline with how he gamble and in same direction a credit card user who lacks self discipline in how to utilize his money have to priotize his needs  not to run into debts.

Using of cash for purchases and using of credit cards has to do with the individual. You will agree with me that there are individuals that are using cash purchase yet still running into debts and borrowings meanwhile some others are using credit cards without borrowing because they are frugal with their spending and desires. That's why I said it all has to do with the individual person.

[crwth]

That depends on the person for sure, if you are someone who doesn't take responsibility too much and tends to spend all the time, credit cards wouldn't be ideal for you. It should be controlled no matter what the process you are doing. It's best that you have the idea or the capacity on what you are paying for.

It's really up to the person if he will be a slave to the credit card or not. For sure, you need to be its master.

[noorman0]

Not necessarily. Let's say someone can last up to 5 years using a credit card, it can be said that they have pretty good financial management. They can proportion income and expenses. Having a credit card is actually not easy, especially reducing the desire to shop excessively. There are many cases where users fail to pay their credit card bills even after several months of use.

In conclusion, assessing financial literacy from credit card use can be done based on how long they have used it.

[boyptc]

If it's just about financial literacy, there are folks that are maximizing the use of credit cards. They're getting more points and benefits or perks from using it.

What they do is they choose credit card providers that have waived their annual fees forever and that's the sign of them knowing how to use it.

But I'd prefer to use cash as well, I don't feel good when I think that I've got debts and that is what I am trying to avoid.

[Zlantann]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

The answer to your question is relative. Some persons will tell you that they spend more when they have cash because it is easier to spend. Others might have different experience. Financial prudence is not a function of cash or credit cards but self-control. You ability to spend on only what you need is more important than the payment channels.

In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Maybe your conclusion about the general advice most financial advisers give to people about being debt-free is based on your observation. And the advice people get from professionals is based on the peculiar experience of the person. There are many other reasons why people are indebted. Credit cards can be very helpful in times of financial emergency, so it is not bad to have one.

[DrBeer]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Cash or credit cards are just tools..... But how they are used is an indicator of human development.
But there are other nuances that not every person can "fight", or rather the temptation to spend more than you can logically afford.
Cash has a "physical limitation" - you can't spend more than you have. A credit card allows you to do that. But here the question is only for the cardholder - why do you spend more than you have?
But cards have many advantages - for example, I don't know how it is in other countries, but in my country, for customers with good credit history and good balance there are for example convenient programs, such as interest-free purchase or 60-day interest-free use of credit funds. It's really convenient. For example, I need to buy a new refrigerator, it costs 1500 dollars. I can pay that amount for it right away. But why, if I can make an installment payment for 12-24 months, with a small amount of monthly payment and 0% interest rate.... But to have those terms, you have to have a good history, and no permanent debt. It's convenient, and it saves me money.... With cash, such a procedure cannot be realized.


Some people use cash because "big brother is watching him" In short, there are a lot of options for using both instruments to achieve different goals

[jrrsparkles]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Avoiding credit cards isn't a smart option, using the credit card wisely should be the actual financial literacy.

It's a broad topic that needs hours of talk to explain it but in simple terms don't use a credit card if you don't have the same amount in your bank account. Let's say you buy products for $100 and then buy them using a credit card even if you have $100 in your hand or bank account.

Credit cards play a vital role in credit history and credit scores which can give you eligibility fo loans at lower interest rates so when you need them for something that can give you returns this all will make sense.

[m2017]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

"Does Using a Credit Card Demonstrate Financial Literacy?" - Just the opposite. This demonstrates financial illiteracy. Credit (borrowed) money is expensive.

When paying with credit or any other electronic money (or analogues), the sense of counting and control is lost, which is expressed in incontinence in spending when shopping, wastefulness and it becomes easier to make unnecessary expenses. Cash, when you see and hold the bills in your hands, these processes become more restrained. Perhaps there are some studies on this matter that could confirm this, but I can only say from my experience that paying with credit (or other) bank cards is more frivolous.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I am sure, and not just think, that this is exactly the case. Absolutely true.

Credit cards (like any other form of borrowed money) can be used, but you need to do it wisely, which most card users don't do, which causes them to go into debt and get into financial trouble.

[terrific]

I don't want to use credit card based on the experience that I've read and horror stories that I've heard. I know that it won't happen to me if they're the irresponsible credit card users.
I understand that there are actually good ways to maximize the usage of it based on the perks that you will get and the bonuses that establishments offers for the CC users that will use for payments.
It's a loan yes but as long as you pay it on the right time, you won't be in trouble.

[ZAINmalik75]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Yes, it is true that those who don't use debit cards are most likely not in debt, specifically from the banks. They have set their earnings and made a monthly or weekly plan to spend their funds. The best way is to live a simple life. Even if you have to use a debit card at some shopping mall or someplace where they don't accept currency directly, try to find another way, and if you still don't find a way around, then use a debit card for such a situation.

No doubt debit cards provide a lot of benefits, they can also save your life in some emergency situations where money is needed, but in normal times, debit cards are just one of the main reasons to increase your expenses.

For example, having an idea of total income and expenditure in mind will make you buy things less. But if you have a debit card, then you might not control your desire to buy new things. We all have the desire to buy things, and when we buy them, our desire increases more, and we tend to buy more. At the end, we are under huge debt that we have to clear, and interest is also there. So, ignore debit cards and prefer to use them in the fewest cases.

[Fortify]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Simply owning a credit card barely shows the tiniest bit of financial literacy as you put it. In the eyes of a credit card company, they really want the dumbest people possible to apply for and start spending on a credit card, because it is one of the most expensive forms of borrowing around for many people. Knowing how the credit card companies are trying to make money from you is critical. Credit card companies don't really make money off people who use it correctly by paying off the balance that is due each month. They make money from the people who roll over debt and make the minimum payments for years on end, while being charged 20%+ per year for the "privilege".

[Cryptomultiplier]

Credit cards ain't easily available to those who don't earn from one form of job or another.
To those it is available to, it is supposed to be used in a disciplined way, but it's never the case with spending, and that's how these credit card schemes make their profits.
A credit card is supposed to be a last resort when cash is unavoidably in absentia.
Using a credit card means one is literate enough to know when and how to cover their debts and can use one, it demonstrates literacy, but when we talk of financial literacy, it's a whole different ball game.

Financial literacy involves the discipline to spend, save, invest, making projections for the future and delay of instant gratification.

[Jegileman]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

There is no much comparison to make on this two as regards to the title of your topic. Having a credit card does not means financial literacy and not having it does not still mean the same. Financial literacy to me has to do with the proper management skills of your money, either in cash, or online in your bank accounts. If your funds are not save with you by letting out the security of your money for intruders to have access to it, you can be called financial illiterate. Having money to subscribe or not subscribe for any service has nothing to do with your credit cards, even without credit cards, you can always do what you like with your money if you have full access to it at anytime.

[darkangel11]

I am one of the people who prefer to pay with cash. The feeling of counting the money manually causes greater psychological damage than a single click. If we say that you want to spend $2,000 on shopping, as soon as you start buying, you will find that this amount is exaggerated and that I must pay less, but when paying through banking applications. Or credit cards It's like I don't spend a lot of money. Therefore, it is not a matter of ignorance or illiteracy more than it leads to more spending.

I know what you mean. Holding money in your hand makes it feel more significant than making a bank transfer or touching a reader with your card.
I've never had a credit card same as most people that I know.Unlike in the US, in Europe debit cards are more popular than credit cards. Holding cash at home is a tradition for me. I've never fully trusted banks and always tried to have some money at home, especially since the ATM bank runs happened and I've learned how hard can it be to access your money when too many people want to do the same thing.
Currently, I own more cash and bitcoin than money in the bank. I don't have a loan, or a credit card and I'm happy. Don't know if that makes me literate or illiterate in financial terms. You will have to decide that on your own

[serjent05]

What are your thoughts on this stance?

I think this case is subjective.  It depends on how a person manages his finances.  After all financial literacy is all about financial management.  There are people who don't have credit card but still unable to control their spending while there are people who have credit cards but are able to control their finances successfully.  Having a credit card in not an indicator whether a person has financial literacy or not.  It is the way they use their finances and how they manage them carefully.

[Bananington]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

With cash, you can always plan better and organize your expenses. You will always be quick to make subtractions from the cash you have at hand whenever you have an expense unlike when you use a credit card that you just know that your account is funded and you are able to afford many things, it's easy to lose count or track of what you spend because you're not carrying physical cash with you. Some persons properly avoid having credit cards just so that they can be more financially disciplined and save more.

[Fatunad]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Having credit cards isnt bad as long you are really just that responsible about on how you do spend and also it do really outweighs the risks or its cons via its benefits.It is really just turns out that people would really be focusing that much about its negative.There would really be that no negative if you are really just that responsible on paying up your dues and not really just that going overdue or wont mind on repaying it out.
Also come in mind that we could really be taking advantage on having CC considering that you could really be able to make some fast cash if  you are in need which it is way more better rather than on getting some loan into some people which interest is really that high and never been worth but if someone who do sees that CC's are really that huge problems then it isnt really that bad that they would get rid of it specially
if they have seen or having those bad experiences in the past then it would really be ideal that they should gonna do on whats right.

For me then i would be seeing that CC are really that a great help since not all the time we do have fiat into our pockets on which there would really be moments or times that you would
really be needing it up and it is really that a life saver but of course you should really be a responsible payor for you not to have those kind of problems.

[pixie85]

IMO it's the opposite. Many people in the US with primary education own and use a credit card. At the same time many well educated people use cash on purpose to show defiance.

Politicians want us to use digital centralized money and limit cash payments, so it's important to keep using cash as much as we can and show sellers that a lot of their income comes in this form.

I primarily use cash and don't even own a credit card.

[poodle63]

In my opinion the owning of credit card tend to cause overly excessive consumerism, with credit card it allows you to think for later which means saving up problem for later which might cause financial instability.
although we know owning credit card definitely requires certain qualification but I still think that it really don't contribute much to our lives unless we could use it for productive purposes like making business where we can hold off payment until end of the month then only at that scenario it will be useful.
I personally would never use credit card because it might make me more consumtive than just using cash, at least with cash i have sense of guilty by wasting money, with credit card, sometime you just don't feel it and suddenly at the end of the month, the bill pop up.

[Silberman]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

There have been studies about this, and when you have the cash in your hand it becomes way more difficult to spend it compared to other forms of money that are not physical, like it is the case of a credit card or the money on your bank account, so getting rid of your credit cards and using cash exclusively can indeed help you to become more responsible with your money, however this should be part of a whole financial strategy or the positive effects you may see will be very limited.

[DabsPoorVersion]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

With cash, you can always plan better and organize your expenses. You will always be quick to make subtractions from the cash you have at hand whenever you have an expense unlike when you use a credit card that you just know that your account is funded and you are able to afford many things, it's easy to lose count or track of what you spend because you're not carrying physical cash with you. Some persons properly avoid having credit cards just so that they can be more financially disciplined and save more.

Being responsible will make you not lose track of your credit card expenses. It is indeed easy for most people to track their expenses when using cash, however, responsibly using credit cards is the same. Credit cards have benefits/promos you can enjoy, let's say using it the correct way or the correct credit card category may even give you a discount/cashback. Credit cards also have the option of paying it in full (without interest), or installment (if you worry about overspending). There are a lot more benefits to using credit cards.

You see, it's all about being responsible for using credit cards and knowing how you can maximize all its benefits. Some people are using credit cards on their business, meaning, running their businesses without even spending their own money.

[lovesmayfamilis]

Why is it convenient to use a credit card? To avoid debt on obligations, The time comes for you to pay for something, but you don’t have the required amount on hand; a credit card will come in handy. But to live uncontrollably in debt is a very rash act. It's like slavery. In addition, paying by card is always psychologically easier than paying in cash. When spending cash, a person is also subject to psychological pressure about whether this or that thing is necessary at the moment and at a given price; that is, whether there is a conscious understanding of the need for the product being purchased. Therefore, I would also agree that those who spend cash are more careful about their use and are more savvy in matters of finance.

[slapper]

Do we really think that giving up credit cards will solve all of our financial problems? This viewpoint ignores the nuances of financial literacy in favor of a reductionist approach. In this discussion, credit cards' benefits (rewards and credit history) are ignored

To some extent, the belief that using cash means living a debt-free life is true, but it's important to examine this claim more closely. It's not that credit cards are the nemesis of stable finances; rather, using them carelessly poses a risk. Financial knowledge isn't either/or; it's a complex field where smarts and discipline live together. We need to look into these simple ideas more deeply and rethink our position on credit vs. cash

[Negotiation]

I prefer to use cash over credit cards cards are online shopping and credit cards are a special facility offered by banks or financial institutions. This card can be used to borrow money for purchases or other services credit card loans have to be repaid within a certain period of time. Every month interest is charged if the money is returned within the specified time period. If there is delay in payment of interest due to any reason the amount of loan increases but in case of using cash money there is no problem of such interest. Not every thing can be bought with a credit card sometimes cash is needed for small items.

[Don Pedro Dinero]

There is a concept that companies and governments are very familiar with, and that is friction. When you pay with cash, you feel the maximum degree of friction, one degree below is paying with a debit card, one degree below is paying with a credit card. The less friction you have, the more you tend to spend, that's why it is so important now that we go to a cashless society, because they want us to be broke consumers. It's inevitable to use cards from time to time and I do but if you want to get your finances in order and pay for everything digitally, you'd do well to go back to cash.

[Nwada001]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I don't have experience with credit cards and their features, so I can't relay how those debts work. In my country, what we make use of is a debit card, and it makes life easier than operating with cash wherever we go.
 
I have read about the feature that the credit card has that allows people to take a loan from their card, which they can pay back after a letter when they have the money. Those are good features, but most people seem to miss using them in the wrong way, as it always makes them spend more than they have.
 
But it's up to the individual who makes such a decision that people can still have access to the credit card and don't run into debt or start thinking about how to escape debt. It's all based on personal decisions. Even without a credit card, those who are not good spenders can still borrow to fund their lifestyles that they can't afford.

[Yogee]

I used to have a no credit card policy but I'm now reconsidering.

It's funny how not using a credit card is called dumb by some people running a business. They claim that if you are going to spend money on your necessities and business expenses anyway then you may as well get one so you could build your credit up and gain some perks. Treat it as if you are using a debit card. This is the part where I find it most logical and a smart move.

[philipma1957]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

If you use your credit card properly they will make money for you.

I am 66 years old and have paid under 100 usd in credit card interest since 1985.  I have earned 50,000 usd in points. Used for trips mining gear gift card etc.

So basically CC's are a source of income for me. 

If you can't do this don't .
if you can do this and don't do it you are not using your good credit properly.

It is pretty much this simple.

[kryptqnick]

People usually use debit cards, not credit cards in my country, so when a person's paying with a card, it's usually this person's money on it. I've never used a credit card, but there were times when I used cash more vs times when I used card payments more. I think that if one needs to stick to a rough budget, it's easier to use cash because you just take a certain amount with you and that's it, but in other situations, it doesn't really matter. Also, it's more of a matter of financial management rather than financial literacy to me because literacy is about more than sticking to a budget.

[Juse14]

A credit card will only be useful and helpful when the card is used by the right and wise person. Of course, the presence of this credit card makes it very easy for us to carry out transactions because with a credit card we don't need to bother carrying cash when shopping in large amounts and the presence of a credit card can also help us in times of urgency, helping us to meet our needs. when we don't have enough money to meet these needs. because with a credit card we can make a loan without collateral. However, this can be inversely proportional when this credit card goes to the wrong person and is careless in doing something. The presence of this credit card could have bad consequences because it could allow someone to behave carelessly, namely shopping without any restrictions and doing this just to fulfill their desires, so that in the end this will only make someone become in debt.

[AmoreJaz]

A credit card will only be useful and helpful when the card is used by the right and wise person. Of course, the presence of this credit card makes it very easy for us to carry out transactions because with a credit card we don't need to bother carrying cash when shopping in large amounts and the presence of a credit card can also help us in times of urgency, helping us to meet our needs. when we don't have enough money to meet these needs. because with a credit card we can make a loan without collateral. However, this can be inversely proportional when this credit card goes to the wrong person and is careless in doing something. The presence of this credit card could have bad consequences because it could allow someone to behave carelessly, namely shopping without any restrictions and doing this just to fulfill their desires, so that in the end this will only make someone become in debt.

bottomline, you can only appreciate having your own credit card if you are responsible enough in managing it. but a nightmare if you happen not to control your spending habits.
for me, it is better not to use credit card at all, at least, there's no temptation. most of what we buy usually is the product of our impulses.

[dothebeats]

I don't think that that's not the case. Credit cards offer convenience to a lot of people, and provide better flexibility especially in buying online. Using cash exclusively also does not mean one is financially literate. It may just meant that they don't have access to credit cards, too. Financial literacy is knowing how and when to spend money. Using whichever financial instrument does not make you more financially literate - it all boils down to your financial decisions e.g. buying wants vs needs, etc.

[demonica]

For me, it still depends. There are people out there who can maximize the benefits of using credit cards. And I think they're the smart ones. Not all people who uses cash instead of cc are financially literate but for me it's the other way around. But not all people who uses cc are smart with using it. Credit is power, if you know how to properly use it. But if you're just using your credit card to buy the things you want without really thinking if you can pay for it, then you're just making yourself to be buried in debt. There are a lots of perks and benefits when using credit cards. And as long as you pay on time, have a good credit history, and can maintain a good status, then you're using your credit card properly.

[Gallar]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy?

It can be said to be right and it can also be said to be wrong. Because, the problem of having a credit card and only using cash for shopping, has different perspectives from various groups of society. If seen from the perspective of someone who has very abundant economic conditions and wealth, perhaps not using a credit card and only using cash for shopping could be said to be an act of financial literacy. However, if you look at it from the perspective of people who have middle to lower economic conditions, they will probably choose cash for shopping and not use a credit card, because most likely they cannot afford to have a credit card and only have one option, namely using cash.

Therefore, financial literacy regarding the use of credit cards or cash is more likely to be used by rich people. Because rich people have a choice (credit or cash), while people in middle and lower economic conditions have no other option but to use cash.

Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.
~Snip

I personally also agree with this opinion. Because using a credit card sometimes makes spending more difficult to control, because you feel like there is a lot of money and it will never end. In fact, a credit card system uses bank money for shopping and in the end the money has to be paid. So in essence it is better to use cash than to use a credit card. Because using a credit card = borrowing money.

[naira]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

For almost 5 years I no longer have a credit card because in my opinion having a credit card is 1:1 (between needing it and not needing it). The reason is, the cash I hold is always adjusted to my basic needs and I invest the rest. My view on credit cards is quite simple, I don't like the interest charged every month/year. Moreover, showing financial status is something I always avoid. I don't really need praise from other people just because I have a lot of money in the ATM, for me the important thing is that my personal pleasure is enough, because you could say I like everything covered.

And a pattern like this makes me feel free, not having any demands outside of my needs and the principle of upholding the freedom of life.

[slapper]

For me, it still depends. There are people out there who can maximize the benefits of using credit cards. And I think they're the smart ones. Not all people who uses cash instead of cc are financially literate but for me it's the other way around. But not all people who uses cc are smart with using it. Credit is power, if you know how to properly use it. But if you're just using your credit card to buy the things you want without really thinking if you can pay for it, then you're just making yourself to be buried in debt. There are a lots of perks and benefits when using credit cards. And as long as you pay on time, have a good credit history, and can maintain a good status, then you're using your credit card properly.

They're not just pieces of plastic; they're tools, powerful tools. Using any tool depends on how you utilize it. Absolutely, credit is power. Modern economic and personal finance power. But enormous power comes with... responsibilities. Some wise folks maximize credit card benefits. They pay on time and receive perks, cashback, and miles. Always on time. That's smart. It's financial literacy. However, I've seen people swipe without thinking. They purchase, buy, buy, and get deep into debt. Nothing wonderful about it. Credit cards offer rewards and advantages. They're not free. You must be incredibly smart. Keep your credit score high by paying on time. You're utilizing credit cards correctly if you can accomplish that. The sensible way. This is how you win personal finance

[lixer]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I believe it's all about discipline within the nature of a person and it isn't about using cash or credit cards for you to have or don't have debt. There can be people who might be indebted even after using cash because they basically lack financial management skills and they don't know how they should use their money so that it fulfills all their needs and they don't require more money before they get paid again, and similarly, there can be people who might be debt-free even when using credit cards because they know their spending limit and they wouldn't cross that.

However, I do agree with the fact that when a person knows that they can use more money than they actually own, this might be tempting when they want to make a certain purchase but they don't have enough money for that but they can buy it using a credit card but in return become indebted to the bank.

[davis196]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I've seen multiple studies and surveys stating that the people, who are paying with cash are more financially responsible.
It all depends of how you are using the credit card. If you are paying the credit card debt on time I don't see any problem with using credit cards instead of cash. I also agree that credit cards can make the people financially irresponsible, because the process of spending money becomes easier and carefree.
All the cashback programs exist for a reason. The banks want more people to get hooked into credit card debt, which means more money for the banks.

[xSkylarx]

Owning a credit card is tempting you to buy those things even you cant afford it in cash. I know there is nothing wrong with it but you will tend to buy useless things. I am living in a country where if you have a credit card you are in the middle class to the rich and most of what I've heard is that they have a credit card for credit score because of discounts and take out big loans but for me it is still better paying in cash mostly if I want to buy stuff and not tempted to buy it using a credit card.

[vv181]

There are many pitfalls concerning credit card. Without a doubt that credit card consumption affects physiological state of the owner. It makes them more likely to spend money, impulsive buying, generally they tend to spend money compared with cash usages. The feeling itself of giving away a direct cash versus getting the bill of the bought goods next month is different. That is one of many reason of the pitfalls.

Hence it does not necessarily make its user is financially literates. On the other hand, if the user using CC properly, maximising points, bonus, promo, and managing or handling their own cashflow, surely those are good way to utilize the credit card. With that in mind, we can see clearly the behavior that shows financial literacy.

[DabsPoorVersion]

Owning a credit card is tempting you to buy those things even you cant afford it in cash. I know there is nothing wrong with it but you will tend to buy useless things. I am living in a country where if you have a credit card you are in the middle class to the rich and most of what I've heard is that they have a credit card for credit score because of discounts and take out big loans but for me it is still better paying in cash mostly if I want to buy stuff and not tempted to buy it using a credit card.

Actually, that's the good part of using credit cards. Aside from having to continue to have a good credit score (only if you are a good payor), taking a big loan for your needs like furniture for your house, or even for your business, everything will be easy as long as it's within your credit limit. Most of the time, the bank itself will call you to offer a loan with a small interest rate, no documents needed, and can approved within a few days. Unlike if you take a personal loan directly from the bank, you need to have collateral or a lot of documents needed to submit.

Using a credit card doesn't mean you can purchase outside your budget. Of course, you still have to control yourself and manage your expenses. If you have the money to pay for your credit card bill, pay it as soon as you can. It's better as you can also enjoy the benefits in the long run.

[CODE200]

For me, it still depends. There are people out there who can maximize the benefits of using credit cards. And I think they're the smart ones. Not all people who uses cash instead of cc are financially literate but for me it's the other way around. But not all people who uses cc are smart with using it. Credit is power, if you know how to properly use it. But if you're just using your credit card to buy the things you want without really thinking if you can pay for it, then you're just making yourself to be buried in debt. There are a lots of perks and benefits when using credit cards. And as long as you pay on time, have a good credit history, and can maintain a good status, then you're using your credit card properly.
 

I totally agree on this. I think it always depends on the person, and I don't think that whether you're using a cash, or a credit card would have an effect on you. But personally, I think using credit card is so much better than using cash because you're clearly demonstrating financial literacy for it is a manifestation that you are saving money on your bank. I think it is also convenient to use credit card instead of cash. But if you are aware that sometimes you cannot control yourself in being a compulsive buyer, then I think it's better for you to lean towards using cash instead of credit card. Because oftentimes, big spenders are using credit cards because it is an easier payment method and a more flexible way of paying.

[boty]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I've seen multiple studies and surveys stating that the people, who are paying with cash are more financially responsible.
It all depends of how you are using the credit card. If you are paying the credit card debt on time I don't see any problem with using credit cards instead of cash. I also agree that credit cards can make the people financially irresponsible, because the process of spending money becomes easier and carefree.
All the cashback programs exist for a reason. The banks want more people to get hooked into credit card debt, which means more money for the banks.

If we use a credit card just to fulfill our desires, of course this will be very bad because we will use it uncontrollably and this will have a bad impact on our financial condition, and also the income we have will easily run out to pay the installments the credit card we use. Your statement is correct, any cashback program from credit cards will not be profitable for credit card users and we will be trapped in debt if we use credit cards a lot.

[BitcoinTurk]

Unfortunately, the use of credit cards can negatively affect a person financially if he or she does so without self-control and control over his or her spendings. When I first had a credit card, I started to make many of my expenses using my credit card and unfortunately it caused me to have some financial difficulties because it had a higher limit than my salary. Afterwards, I started to control myself and my expenses and turned the situation into an advantage since it had the Turkish Lira currency.

Nowadays, since I live in a European country and get paid my salary in Euros, I make some of my expenses with my credit card and pay them in installments. In this way, I pay installments in Turkish Lira and protect myself against inflation due to the constant depreciation of the Turkish Lira and I purchase many products below my cost despite the interest paid.

In summary, it is possible to turn credit card use into an advantage with correct use but if it is not used correctly credit card use can cause a huge financial chaos or collapse.

[Mate2237]

Op I must say the truth, you topic is not found in the content though I understand what you are saying but I was expecting the main concept as a question in the thread but it is the opposite side that I seen in the thread and that is why when creating thread make sure we should stay on the topic so that the discussion will be very interesting.

From the topic and not the content I will say yes. It shows financial literacy and I am saying it from personal experienced and a neighbour experience. A woman who is not educated prefer going to the bank and withdraw cash and use it and I can't remember when last I visited the bank since after the redesign of the currency. Those who are not educated can not use credit card without helping hands. And that is dangerous to the security of the account. My neighbor who is a illiterate, was using credit card and POS attendance used the card to withdraw big amount of money whenever she is not around. If she was an literate she wouldn't show her pin to anyone. And because of this scenario I am saying that it shows financial literacy.

[DeathAngel]

Avoiding using a credit card for purchases is definitely responsible financial behaviour but it doesn't necessarily indicate financial literacy on its own. Financial literacy required a wide range of knowledge & skills like budgeting, saving, investing & understanding financial concepts. Avoiding credit card usage can help prevent debt, being financially literate involves understanding how to manage credit effectively, build a good credit history & make good financial decisions based on your individual circumstances & goals.

[Haunebu]

Interesting topic op. I don't think that using credit card reflects financial literacy though it is a fact that people who use credit cards more often than cash tend to end up in debt way quicker.

Personally, I use a bit of everything though my primary usage is digital cash and I don't really take loans unless absolutely necessary.

[karabiber]

In my opinion the owning of credit card tend to cause overly excessive consumerism, with credit card it allows you to think for later which means saving up problem for later which might cause financial instability.
although we know owning credit card definitely requires certain qualification but I still think that it really don't contribute much to our lives unless we could use it for productive purposes like making business where we can hold off payment until end of the month then only at that scenario it will be useful.
I personally would never use credit card because it might make me more consumtive than just using cash, at least with cash i have sense of guilty by wasting money, with credit card, sometime you just don't feel it and suddenly at the end of the month, the bill pop up.

Credit cards are used almost everywhere today. Since credit card usage is related to many issues, it varies on an individual basis. Credit card usage in developed countries is not higher than in undeveloped countries. There may be many reasons for this but I think it is disadvantageous not to use a credit card in a country with inflation that has captured the whole world in recent years. Because most underdeveloped countries are struggling with inflation and in an environment of high inflation, you can postpone your spending with credit cards.
I think a credit card used wisely is one of the effective solutions to the cost of living. If a credit card user is financially literate, a credit card is a shining jewel but a credit card in the hands of a person with poor financial literacy is like a dangerous weapon. I exempt from my comments on the use of credit cards those who want and prioritize anonymity.

[Bushdark]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Sometimes we spend more when we use credit card to buy things online because we might always be tempted to go for something that would even cost us more than what we can afford on a regular basis. We need to make plans and have a scale of preference when we want to buy things online becau6we might not even know when we have spent money we have budgeted for other things because iof careless use if credit card when shopping online. I would reather prefer the use if cash when. Shopping because this makes me to regulate and adjust my spending when shopping at any time.

[Renampun]

...

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

In general, I don't agree with this because I have an older cousin who has actively used a credit card for almost 10 years, he has a stable job and the monthly salary he receives is deducted by credit card payments every month, because he actively uses a credit card, he get a gift from the bank that provides the credit card he uses.

whether you are a credit card user or not a credit card user, if you are able to manage your debts - investments - savings wisely then you already have high financial literacy.

[DVlog]

For me, it still depends. There are people out there who can maximize the benefits of using credit cards. And I think they're the smart ones. Not all people who uses cash instead of cc are financially literate but for me it's the other way around. But not all people who uses cc are smart with using it. Credit is power, if you know how to properly use it. But if you're just using your credit card to buy the things you want without really thinking if you can pay for it, then you're just making yourself to be buried in debt. There are a lots of perks and benefits when using credit cards. And as long as you pay on time, have a good credit history, and can maintain a good status, then you're using your credit card properly.

Use of technology doesn't mean you are well educated in that sector. We are using bitcoin that uses blockchain technology which means all the investors are well aware of all the technical terms bitcoin has! This doesn't make sense. However credit cards are a technological advancement and if you show an illiterate person how to use them, he can use a credit card like others. It is not that hard to understand and doesn't require a degree.

[dothebeats]

Owning a credit card is tempting you to buy those things even you cant afford it in cash. I know there is nothing wrong with it but you will tend to buy useless things. I am living in a country where if you have a credit card you are in the middle class to the rich and most of what I've heard is that they have a credit card for credit score because of discounts and take out big loans but for me it is still better paying in cash mostly if I want to buy stuff and not tempted to buy it using a credit card.

Fixing your credit score to take out big loans is actually a hint of one being financially sound. You are aiming for that loan because you might use it to something beneficial e.g. starting a business, buying a home, etc. The mere fact that you are responsible enough to be on track with your debts, plus having a clear financial goal means you understand what you're doing. Even the lower middle class people can do this, provided that they are really tight on their budget and are strictly following the needs > wants ideology.

It takes strict compliance and obedience to one's plan to be financially literate. It's just discipline with a direction at the end of the day.

[Wiwo]

Financial intelligence is demonstrated in how we handle our financial responsibility and how we place our scales of preference on things that we tend as necessity, want and also what we classify as luxuries because you can afford to be luxurious with debt and at most, the only reason to take loans should be for starting up something new,  and that thing being able to service the loan on it own,  so why then should I spend too much using a credit card that I know is not my money and also I get heavy interest on that money,  and if that be the case then I will only spend the amount I know I will be able to afford to on my own,  that is the reason I prefer using cash or my own bank cards mostly debits cards.

I have never had a credit card all my life,  and I don't intend to have any for a long time probably forever,  because I will make sure to build my expenses around my budget and income per month.

[Captain Corporate]

Being "debt-free" is not as good of a thing as one might think. Sure do not have debt that you can't pay, limit your debt to amounts you can pay, but also use debt to grow as well. I personally have a credit card AND a loan that I am paying, but thanks to those I have purchased stuff that I couldn't ever get with cash, in an inflationary nation like mine, spending money today with credit card means that by the time my debt is over, the price of the product will be huge. So if you use your debt smartly then you are going to be fine, but if you go into debt without knowing what you are doing and just a shopping spree like an addict, then obviously your debt will ruin your finances.

[Fatunad]

Financial intelligence is demonstrated in how we handle our financial responsibility and how we place our scales of preference on things that we tend as necessity, want and also what we classify as luxuries because you can afford to be luxurious with debt and at most, the only reason to take loans should be for starting up something new,  and that thing being able to service the loan on it own,  so why then should I spend too much using a credit card that I know is not my money and also I get heavy interest on that money,  and if that be the case then I will only spend the amount I know I will be able to afford to on my own,  that is the reason I prefer using cash or my own bank cards mostly debits cards.

I have never had a credit card all my life,  and I don't intend to have any for a long time probably forever,  because I will make sure to build my expenses around my budget and income per month.

But once you do have a credit card then you could really be able to make up some transactions if you are short in fiat but if you do see that you could be able to sustain yourself without credit card then it would really be just that so fine that you wont really be needing one but for me then it is really that something helpful if you are really just that mindful about paying up your dues. Myself does have that having those past problems about credit cards on which i do really end up on struggling on paying because of having those missed payments on which it did really give out those kind of penalties which ends up on being compounded until you would really be falling into the pit of debt on which getting out would really be never be that easy.

The good thing about on having credit card is that you could really be able to transact things or making those purchases even if you dont have fiat on your pocket which it is really that convenient.
Interest arent really that high though as long you do know on how to pay  your obligations but if not then expect that this is something that would really be happening.
Common sense you would really be needing in terms of handling up yourself into the right path. Spending isnt bad as long you are really that responsible on repaying those dues.
People do usually mess up their lives because of the wrong decisions that they had made.

[Juse14]

A credit card will only be useful and helpful when the card is used by the right and wise person. Of course, the presence of this credit card makes it very easy for us to carry out transactions because with a credit card we don't need to bother carrying cash when shopping in large amounts and the presence of a credit card can also help us in times of urgency, helping us to meet our needs. when we don't have enough money to meet these needs. because with a credit card we can make a loan without collateral. However, this can be inversely proportional when this credit card goes to the wrong person and is careless in doing something. The presence of this credit card could have bad consequences because it could allow someone to behave carelessly, namely shopping without any restrictions and doing this just to fulfill their desires, so that in the end this will only make someone become in debt.

bottomline, you can only appreciate having your own credit card if you are responsible enough in managing it. but a nightmare if you happen not to control your spending habits.
for me, it is better not to use credit card at all, at least, there's no temptation. most of what we buy usually is the product of our impulses.

Everyone has their own choices and views in assessing something. If the presence of this credit card can harm and endanger yourself because it will only lead you to a bad behavior. then the decision not to use a credit card at all is the right decision.
I personally think that the presence of this credit card is very useful because it can help me when I am in a fairly urgent condition and I think that I have good enough self-control so that in using this credit card I can use it wisely. Another reason why I use credit cards is because I am well aware that I do not have enough savings to be able to answer when I have an urgent need. And maybe I will only stop using this credit card when in time I already have enough savings.

[freedomgo]

Credit cards are often associated with the wealthy who can pay off their entire balance while benefiting from various rewards and points. However, for those with limited financial means who can only afford to make the minimum monthly payment, it can lead to long-term financial problems, especially if they continue to overspend, resulting in a never-ending balance. Credit cards are essentially tools that offer convenience in spending, eliminating the need to carry large amounts of cash. Therefore, it's essential for individuals to carefully evaluate their financial situations before obtaining one, considering whether it genuinely enhances their financial comfort or merely adds to their debt burden.

In a simplified explanation, while the wealthy enjoy convenience from credit cards, which credit card companies don't profit much from, it's often the less fortunate who are essentially financing the operations of credit card companies, allowing the wealthy to continue benefiting from their services.

[poodle63]

Being "debt-free" is not as good of a thing as one might think. Sure do not have debt that you can't pay, limit your debt to amounts you can pay, but also use debt to grow as well. I personally have a credit card AND a loan that I am paying, but thanks to those I have purchased stuff that I couldn't ever get with cash, in an inflationary nation like mine, spending money today with credit card means that by the time my debt is over, the price of the product will be huge. So if you use your debt smartly then you are going to be fine, but if you go into debt without knowing what you are doing and just a shopping spree like an addict, then obviously your debt will ruin your finances.

that is using credit card wisely most of the time some people use credit card to buy luxurious things, in which actually is fine though if the luxurious stuff is some sort of investment that could grow but if its going into some restaurant spending thousand dollar just for eating which next day become feces then its as good as just trapping themselves into the debt.
credit card is good if taken advantage properly but there are many misuse of it.
sometime the fact that credit card, requires us to pay fully at the end of the month to get good credit simply means that its really is just good for holding off payment until sometime and then pay it in full.
which simply means we can afford it in the first place, but delaying it to keep the cash flow from disrupted.

[TimeTeller]

Credit cards are often associated with the wealthy who can pay off their entire balance while benefiting from various rewards and points. However, for those with limited financial means who can only afford to make the minimum monthly payment, it can lead to long-term financial problems, especially if they continue to overspend, resulting in a never-ending balance. Credit cards are essentially tools that offer convenience in spending, eliminating the need to carry large amounts of cash. Therefore, it's essential for individuals to carefully evaluate their financial situations before obtaining one, considering whether it genuinely enhances their financial comfort or merely adds to their debt burden.

In a simplified explanation, while the wealthy enjoy convenience from credit cards, which credit card companies don't profit much from, it's often the less fortunate who are essentially financing the operations of credit card companies, allowing the wealthy to continue benefiting from their services.

I am not against with having credit card so long you are being responsible about the use of it.
Because there are so many conveniences that it will provide to you especially in tight situations where you forgot to bring your cash or you are out of cash.
But if you don't want to worry about having debt to these financial companies, much better to use a debit card.
At least, you know you are spending your own money and you don't have to worry about forgetting your due date for your credit card.
Also, it will teach you how to manage your finances without incurring debt to any of these companies.

[Strongkored]

What are your thoughts on this stance?

Most of what happens is like that, and that's what I also experienced, but not with credit cards but with the pay later feature which is currently available in many marketplaces, this feature makes us brave enough to shop without first looking at our financial budget, so that when we receive our salary we make dizzy because we have spent more than we should and what's worse is that the high interest means we spend a lot of our money on that.
Credit cards can actually be useful when we can use them carefully and that's what I did when I started a business and needed important tools to buy them with a credit card, so use a credit card only for important things, not to buy unnecessary goods, but what is better is to give up everything, meaning not having a credit card or using the pay later feature which is more damaging because getting it is easier than a credit card, and the interest is more unreasonable than credit cards, and not having both will allow us to refrain from shopping for things that are not important because we will only buy when we have cash.

[freedomgo]

Credit cards are often associated with the wealthy who can pay off their entire balance while benefiting from various rewards and points. However, for those with limited financial means who can only afford to make the minimum monthly payment, it can lead to long-term financial problems, especially if they continue to overspend, resulting in a never-ending balance. Credit cards are essentially tools that offer convenience in spending, eliminating the need to carry large amounts of cash. Therefore, it's essential for individuals to carefully evaluate their financial situations before obtaining one, considering whether it genuinely enhances their financial comfort or merely adds to their debt burden.

In a simplified explanation, while the wealthy enjoy convenience from credit cards, which credit card companies don't profit much from, it's often the less fortunate who are essentially financing the operations of credit card companies, allowing the wealthy to continue benefiting from their services.

I am not against with having credit card so long you are being responsible about the use of it.
Because there are so many conveniences that it will provide to you especially in tight situations where you forgot to bring your cash or you are out of cash.
But if you don't want to worry about having debt to these financial companies, much better to use a debit card.
At least, you know you are spending your own money and you don't have to worry about forgetting your due date for your credit card.
Also, it will teach you how to manage your finances without incurring debt to any of these companies.

Handling a debit card is similar to handling cash, but it involves digital currency. This discussion doesn't really compare debit cards and credit cards; it focuses solely on acquiring a credit card and its potential benefits.

According to the definition of 'financial literacy,' it means making wise financial choices. Getting a credit card when you're low on cash or just want to borrow money may not be a wise financial choice for people with limited funds, because the penalties for missing payments are high.

[Cookdata]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Have you thought about how some family don't have a choice but to live with credit cards all their life? People who will request for debit card will do, it is not about financial literacy. Checked vividly, when people have more basic that are more than their income, then credit card is the only way they can sort out emergency needs because banks know what you earn monthly, and they can easily borrow you than another financial system that may delay you. When a person has a budget deficit, credit cards are inevitable because your net income is less than expenditure, how do you think it is easy to live that life when there are more needs at home?

I don't have the statistics but it is even difficult to see a single person use a credit card except for those that are living life above their pockets. Most often, it is those who have more kids with less pay and have more responsibility at home. The house will be on the mortgage, the kids are there to be paid for school fees, and the wife probably is doing nothing than to help do domestic, the only way out for that time when the income is low is a credit card because you can't avoid basic needs. Banks might be benefiting all from this but this is difficult for some people to ignore.

[philipma1957]

For me, it still depends. There are people out there who can maximize the benefits of using credit cards. And I think they're the smart ones. Not all people who uses cash instead of cc are financially literate but for me it's the other way around. But not all people who uses cc are smart with using it. Credit is power, if you know how to properly use it. But if you're just using your credit card to buy the things you want without really thinking if you can pay for it, then you're just making yourself to be buried in debt. There are a lots of perks and benefits when using credit cards. And as long as you pay on time, have a good credit history, and can maintain a good status, then you're using your credit card properly.

They're not just pieces of plastic; they're tools, powerful tools. Using any tool depends on how you utilize it. Absolutely, credit is power. Modern economic and personal finance power. But enormous power comes with... responsibilities. Some wise folks maximize credit card benefits. They pay on time and receive perks, cashback, and miles. Always on time. That's smart. It's financial literacy. However, I've seen people swipe without thinking. They purchase, buy, buy, and get deep into debt. Nothing wonderful about it. Credit cards offer rewards and advantages. They're not free. You must be incredibly smart. Keep your credit score high by paying on time. You're utilizing credit cards correctly if you can accomplish that. The sensible way. This is how you win personal finance

Exactly correct they are tools much like a chainsaw or a sledgehammer.

Use them properly they are helpful. Use them improperly you are fucked up.

Now I know people that will never use a chainsaw as they feel they will fuckup and hurt themselves.

Me I climb trees or ladders and hack away. I am not a lumberjack but I have felled 50 foot trees safely.

Saved a lot of money doing them myself using good safe methods.

But I know wrong shit can happen using a chainsaw. Just like I know you can fuckup using a cc.

I have use both safely so far.  I just got a card last month.

A 18000 line of credit 12 months interest free and a 900 dollar refund if you charge 6000.

I purchased four miners for 8000. right before price of btc went from 27k to 35k.
I made a threehundred dollar payment and got my 900 refund used that to pay for the card.

so i am down to 6800 debt with 11 months to pay.i the machines do 30 a day 25 after power cost.

So in 300 days they should have earned 7500 which will mean card is paid off. And I own four machines never laying out one dime to get them.

[summonerrk]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I think there is no difference - spending cash or money from a credit card. Both are a waste of money. In order not to be a spender, you need to have a special mindset. For example, my thinking changed a lot after Robert Kiyosaki's book Rich Dad, Poor Dad. I immediately realized that money is not an element of what allows you to buy. And the fact that money is a tool for earning even more money. Therefore, you need to save and save, and if possible, buy bitcoin cheap and sell it for a high price. It was then that I learned the technical analysis of prices, and the concept of Compound Interest.

[el kaka22]

We are talking about "preference" here but forgetting that there are people who have no other choice. Yes, it is obvious that if you spend debt on things that you do not need that's bad, but that's already obvious, doing drugs is also bad, should we tell that too? Some things are just way too obvious and should go without stating.

However, if we are talking about something more serious, like how credit card could be used, then we need to realize that some people are so much in trouble, even without spending on luxury or useless stuff, they just do not make enough to pay for their life misery, and they just find themselves forced to use credit card. That's why credit cards exists, there are things you HAVE TO pay, and maybe you do not have money, so you end up using your credit card for it. That should be something important to note and shouldn't really be a big deal. I think it shouldn't be important on the long run at all and need to be fixed.

[tjtonmoy]

If done correctly, anything could be good but it is true that most people who use credit card seems to face debt in their life. If you use the credit card responsibly while doing some calculation and setting up a budget, then you are fine, you are good to go. You know what you are doing. Credit card is a great way of borrowing money without facing the trouble of doing many paper works and waiting.

Only those people who use it carelessly are in great debt. "I can borrow a bit of money and use it to buy me this and that. I will pay it back in the future when I get money." People with this mindset will always fall for debt. Doesn't matter if those kinds of person are using a credit card or traditional cash. Those who have the tendency to borrow from people and live on that will never be able to come out of it. No credit card, they can always borrow from other people.

But the thing is true. When you are using cash money, you have a better understanding of how much money you are carrying with you and you can afford to use. This way you get a better understanding of your spending and control it according to your budget. While on the other hand people tend to get carried away with credit card.

It is true, but the fact still remains the same. Right person can use it in a right way, while wrong person can use it in a wrong way.

[CryptoHeadlineNews]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Being in-depth, or being reckless or indiscipline all totally has nothing to do with either cash or credit card payment, as it all boils down to the individual in question, of which both cash and credit card payments all has their advantage and disadvantages, and left for an individual to choose that which is most beneficial to him or her. Because while a person living in a city or town may prefer to use credit cards, someone living in the village may prefer to be using cash for payment of goods and services. Henceforth, the location by which a person finds himself matters a lot.

Note: Being discipline is an inner quality far beyond either credit card or cash

[oktana]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Not entirely because some people who have a credit card also set limits on it just to be on the safer side of impulse buying and debts (cause that's what mostly happens). Meanwhile, for some other people, using cash can be a sign of financial discipline because it's a tangible form of money, hence it makes it easier to physically see and control your spending. Additionally, you can only spend what you have in your wallet and that can prevent you from impulse buying or accumulating debts. However, if used well with discipline, credit cards can be beneficial through cashback, rewards, building a good credit score, and more.

[Xylber]

Cash is king. And more private.

Do you remember the 80's and early 90's where having a credit card was a symbol of status and high-class? Now a credit card is a symbol of being in debt.
Taxes/fees paid when you use your credit card are high, and in countries with a lot of devaluation/inflation is getting higher. The majority of people I know is using them only because they don't have the money to make a one-time hard cash payment.

Sure there are some "benefits" like travel points, refund of some taxes, etc., but this only shows that either the fee you are paying for using the card is already high, or the government wants control over the spending of their citizens.

[libert19]

I don't have credit card but I use pay later services on ecom sites because with this payment method returns are faster, I pay the accured amount before the due date, it increases my credit score which is extra bonus, I find nothing wrong with it despite in past myself despising credit cards.

Whether literate or otherwise, credit cards are fine as long you pay on time. It might be hard to do so for CC addicts, hence may be financial advisors recommend using cash for payments.

[Uruhara]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I think the answers will really vary on this one. Because there are many people who use credit cards every day but they are still good at managing their finances and can still maintain their financial stability. And on the contrary, there are many people who are in debt even when they don't use or don't even know about credit cards. So I think it all depends on a person's insight and discipline in managing their own finances. Or it will all depend on the different cases experienced by each person. For example, if someone is not good at managing finances and becomes more wasteful when using a credit card, then of course the solution is to stop using credit cards and switch to cash.

[EluguHcman]

If you are in my country and you queue for 30 minutes to 1 hour before you are able to collect money in ATM machine, or you queue in the bank, you will be thinking of how you can avoid these delays

I think in such a scenero, one who finally succeeds a make withdrawal after much time spent in the queue might inspire to place financial withdrawal excessively beyond budget with a draftic measures to give a bit gat to the bank in accordance of avoiding such experienced stresses.
Hence, this singular system of having more cash at hand beyond budget could trigger to unnecessary expenses.

[Davidvictorson]

There are many advantage and disadvantages to using a credit card. However, I have lived all my life in a country where all we use is debit card so I may not be able to speak from personal experience about using a credit card. What I know is that from where I am from, debt is a bad thing. You do not want to be in debt so we learn to pay for every straight from our bank account using our debt card. We do not see debt as a good thing and no one is applauded for being in debt. In fact the measure of financial literacy is avoiding debt in all its entirety.

[Youngkhngdiddy]

I think the answers will really vary on this one. Because there are many people who use credit cards every day but they are still good at managing their finances and can still maintain their financial stability. And on the contrary, there are many people who are in debt even when they don't use or don't even know about credit cards. So I think it all depends on a person's insight and discipline in managing their own finances. Or it will all depend on the different cases experienced by each person. For example, if someone is not good at managing finances and becomes more wasteful when using a credit card, then of course the solution is to stop using credit cards and switch to cash.

  Living in debt is energy-draining. Buying stuff we can't afford might provide short-term satisfaction, but in the long run, it will suck our life away. If you can't afford to pay off the full balance of your credit card every single month, that’s enough of an alarm for you to STOP using credit cards! Always live below your means, save and wait until you can afford those expensive things. Simple living is WAY better than a living with financial bondag,  as long as you clear your balance every month. By doing so, your credit rating climbs at the fastest rate, and you often gain more points/incentives/gifts through various programs that the credit card companies are offering today.
    If cash is lost or stolen it is gone. If a credit card is lost or stolen, I am typically not responsible for any fraudulent transactions, and none at all after I can report the card stolen. credit cards are awesome. You certainly don’t have to feel bad about not paying the credit card company interest to borrow their money. Their costs are covered by the transaction fees anyway. Since credit card transaction fees are pretty much built into the prices of everything (excepting the rare cash discount) you may as well get to enjoy the benefits.

[panganib999]

Depends on how you use it. I've seen people subject themselves to crippling debt thinking that these credit cards are free money dispensers that do not bite back. It's also quite possible for you to gain higher credit, and be allowed to enjoy the finer things in life like an approved loan no matter how big that is, and all that stuff, if you're a good paying credit card holder.

It's all in how you carry it really, not about the card itself. Sure, some cards grant more power, some cheap out on features and benefits, but at the core of it all a credit card acts as your passageway to managing money more wisely, cause when you're in the face of money that's accessible whenever you need it, self-control and discipline is what would matter the most.

[jrrsparkles]

There are many advantage and disadvantages to using a credit card. However, I have lived all my life in a country where all we use is debit card so I may not be able to speak from personal experience about using a credit card. What I know is that from where I am from, debt is a bad thing. You do not want to be in debt so we learn to pay for every straight from our bank account using our debt card. We do not see debt as a good thing and no one is applauded for being in debt. In fact the measure of financial literacy is avoiding debt in all its entirety.

Avoiding debt is a good thing but it's different compared to using a credit card for purchases, if someone uses a credit card doesn't mean they don't have the money to afford it even as basic positive thing credit card gives us protection against while buying something online so if someone used it without authorization you are not liable to pay them back and banks has to bear the loss and also if you are not aware of credit card perks like cashback, reward points, best deals and lot more and the important thing is it will give us good credit score which will benefit in the future when we are in need.

[Mahanton]

There are many advantage and disadvantages to using a credit card. However, I have lived all my life in a country where all we use is debit card so I may not be able to speak from personal experience about using a credit card. What I know is that from where I am from, debt is a bad thing. You do not want to be in debt so we learn to pay for every straight from our bank account using our debt card. We do not see debt as a good thing and no one is applauded for being in debt. In fact the measure of financial literacy is avoiding debt in all its entirety.

Avoiding debt is a good thing but it's different compared to using a credit card for purchases, if someone uses a credit card doesn't mean they don't have the money to afford it even as basic positive thing credit card gives us protection against while buying something online so if someone used it without authorization you are not liable to pay them back and banks has to bear the loss and also if you are not aware of credit card perks like cashback, reward points, best deals and lot more and the important thing is it will give us good credit score which will benefit in the future when we are in need.

If you do have plans on making up some loans like housing loans,personal loans, car loans in the future then building up your credit score would really be the best thing to be done on which having those credit
cards would really be that useful and i do agree into those words above telling about perks and cashbacks or even zero interest if you do tend to buy something on which it is really that a good thing
or having those kind of benefits. As long you do make yourself a good payor or really that a responsible card holder then it would really be just that fine on having these cards.
Wrong things do only happen if you do really just missed out on paying your due date on which it would really be having that accrued interest on which it is really just that normal
but if you do pay up on the right time then it would really be just that fine or something that brings great convenience i should say.

[Baofeng]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

I wouldn't say that they are financial literate, but perhaps they already know or at least they know someone who might have a bad experience with credit card that they dare not to used or apply for one and would rather used cash instead. And I think that there's nothing wrong with it. At some point in time, majority of us here has a huge credit card debt before we were able to get out of it and promise to ourselves not to go that fair and be responsible when we had credit cards.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

But it doesn't mean though that this people are debt free, who knows maybe they got debts from people or bank but not from credit card. So we can't really say for certain that those who doesn't have credit cards are financially literate in my opinion.

[ChiBitCTy]

It all depends on how you use that credit card and what part of the world you're living in.  Here in the United States it's typically pretty important to use credit cards that way you can build credit in case you need to borrow money for things such as a car and a home, which most people need help with.  The problem comes when people get in over their heads and use the card above their means and don't make their timely payments or keep the card paid off.

[Ultegra134]

Cash is king. And more private.

Do you remember the 80's and early 90's where having a credit card was a symbol of status and high-class? Now a credit card is a symbol of being in debt.
Taxes/fees paid when you use your credit card are high, and in countries with a lot of devaluation/inflation is getting higher. The majority of people I know is using them only because they don't have the money to make a one-time hard cash payment.

Sure there are some "benefits" like travel points, refund of some taxes, etc., but this only shows that either the fee you are paying for using the card is already high, or the government wants control over the spending of their citizens.

But cash is going to be extint soon since governments are pressuring for card usage nowadays. I visited Poland two years ago, and even street vendors accepted cards for purchases as little as $0.20. You can pay with a card everywhere, and I found it extremely convenient because I didn't have to go to an ATM machine or go through currency exchanges and so on.

Personally, I have both a credit card and a debit card; the OP here is mostly focusing on credit cards. I'm using cards quite frequently, and personally, card usage makes finance management a little easier. You can keep track of your spending without too much effort. However, I do agree that you can easily lose track, especially with credit cards, if you're caught buying things in installments.

Unfortunately, though, the era when cash was king is long gone. You can't make any large purchases anymore because everything must go through the banking system. One way to possibly avoid all this monitoring would be with cryptocurrency cards, which, even though they require KYC (such as Binance's or Crypto.com), your money is still somewhat safe from the eyes of the government.

[poodle63]

There are many advantage and disadvantages to using a credit card. However, I have lived all my life in a country where all we use is debit card so I may not be able to speak from personal experience about using a credit card. What I know is that from where I am from, debt is a bad thing. You do not want to be in debt so we learn to pay for every straight from our bank account using our debt card. We do not see debt as a good thing and no one is applauded for being in debt. In fact the measure of financial literacy is avoiding debt in all its entirety.

but that stigma different when we are really into the business field, debt is just a way to grow your business faster, credit card is no exception if taken advantage properly you could get all the benefits of the credit cards in your business, as long as its productive debt it will be fine.
the only problem when people are taking loan just for luxurious stuffs like buying expensive cars, then it will become a problem since they are just giving burden towards their income but if it is debt specifically for business i'm pretty sure it will be quite of a help, imagine you got potential of expanding your profit, but stuck with the capital and equipments, simply use credit card to buy equipments to expand your business, the debt will eventually get settled meanwhile you get massive income increase.

[bayu7adi]

There's nothing wrong with credit cards, it's how people use them that matters. We're currently living in a time with significant social inequality, where the rich keep getting richer, and the poor struggle to make ends meet. In my opinion, credit cards are designed for the financial needs of wealthier individuals, those who have a steady monthly income even if they have high spending lifestyle. entrepreneurs often have substantial monthly earnings, and using a credit card is seen as a convenient and helpful way for them to conduct transactions. Since they have no trouble covering their expenses, those using credit cards can easily pay their bills every month. Given the substantial amount of money they earn, their extravagant lifestyle might only account for 10% or 20% of their total income. So, they're not wrong to use credit cards, are they?

The real issue with credit cards arises when people with relatively small incomes rely solely on a single source of income, which isn't substantial enough. If you're struggling to make ends meet, it's not advisable to use a credit card for everyday expenses. However, it can still make sense to use it for wise financial transactions. Credit card users should understand their own lifestyle and the size of their income. these aspects are interconnected and vital for their financial health.

[gunhell16]

A credit card will only be useful and helpful when the card is used by the right and wise person. Of course, the presence of this credit card makes it very easy for us to carry out transactions because with a credit card we don't need to bother carrying cash when shopping in large amounts and the presence of a credit card can also help us in times of urgency, helping us to meet our needs. when we don't have enough money to meet these needs. because with a credit card we can make a loan without collateral. However, this can be inversely proportional when this credit card goes to the wrong person and is careless in doing something. The presence of this credit card could have bad consequences because it could allow someone to behave carelessly, namely shopping without any restrictions and doing this just to fulfill their desires, so that in the end this will only make someone become in debt.

bottomline, you can only appreciate having your own credit card if you are responsible enough in managing it. but a nightmare if you happen not to control your spending habits.
for me, it is better not to use credit card at all, at least, there's no temptation. most of what we buy usually is the product of our impulses.

Everyone has their own choices and views in assessing something. If the presence of this credit card can harm and endanger yourself because it will only lead you to a bad behavior. then the decision not to use a credit card at all is the right decision.
I personally think that the presence of this credit card is very useful because it can help me when I am in a fairly urgent condition and I think that I have good enough self-control so that in using this credit card I can use it wisely. Another reason why I use credit cards is because I am well aware that I do not have enough savings to be able to answer when I have an urgent need. And maybe I will only stop using this credit card when in time I already have enough savings.

That's right, I'll just add the reasons why a person borrows.

- The person borrows because of an emergency that unexpectedly occurs in their life.
- Borrowing because of luxury or something they want to get that they may not be able to buy with cash, so the loan method is their
  solution.
- The others made it a habit, so as a result, they continue to be buried in debt as time goes on.
- the others borrow to show that they have a credit card, or they are leveling themselves to rich people even though they are not really rich;
  in short, those who try hard or feel rich are not really rich.

So these are just a few of the reasons for borrowers, but at the same time, you must be responsible for paying and don't end up looking like you are the arrogant one when you are the one who owes the debt.

[Dr.Bitcoin_Strange]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

If financial discipline were a human, then it basically would not have been everyone at the same time. It's likely to be only one person. What do I say so? People are born with different traits and raised with different disciplines (different parents and backgrounds); no one was single-handedly born with the ability to use money or manage their financial lifestyle properly. There are people who don't stress about anything in the sense that they are always content with what they have. For instance, if you go to the market and have a budget of things you were supposed to buy, but you see a different one that is more expensive than the one you have in mind to purchase, instead of going for the one you intended to, you decide to go for the costliest one. That kind of attitude is what some people cannot portray, whether they are using a debit card or cash. So, in my opinion, it all depends on the individual. There are some people who will go vaaa with a debit or credit card, and some will not. Some people will also go vaaa with cash, and some will not.

[BitcoinTurk]

Financial intelligence is demonstrated in how we handle our financial responsibility and how we place our scales of preference on things that we tend as necessity, want and also what we classify as luxuries because you can afford to be luxurious with debt and at most, the only reason to take loans should be for starting up something new,  and that thing being able to service the loan on it own,  so why then should I spend too much using a credit card that I know is not my money and also I get heavy interest on that money,  and if that be the case then I will only spend the amount I know I will be able to afford to on my own,  that is the reason I prefer using cash or my own bank cards mostly debits cards.

I have never had a credit card all my life,  and I don't intend to have any for a long time probably forever,  because I will make sure to build my expenses around my budget and income per month.

Financial responsibility is definitely about how one should manage one's budget but it is also necessary to gain experience to be aware of financial responsibility and shape it. Of course, the use of credit card debt or loan debt will vary from person to person but the important point is how a person will control this debt. For example, buying a car with a credit card can be considered a luxury expense but making money by using this car and paying off the car's debt depends entirely on the financial intelligence of the person. On the other hand, as I mentioned in my previous comment, the correct use of credit card helps to purchase luxury consumer products more easily. For example, paying in installments in a currency with a high inflation rate actually helps to obtain the purchased service or product at a lower cost and helps to obtain it more easily compared to paying in installments.

Of course, it is your choice not to have a credit card for the rest of your life and not to think about having one for the rest of your life. Who knows, maybe if you had a credit card you might have been paying credit card debt continuously for years. I think that people who are especially interested in luxury consumer products and who cannot achieve financial control should definitely not have a credit card.

[Mauser]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

Everybody I know has a credit card, over the last few years there was a big push by banks to roll out free credit cards for your bank account. I haven't really thought about why this is the case, but it seems that banks wants us to use more plastic and less cash for payments. The majority of my friends use cards for payments, I am definitely the majority as I prefer to pay with cash wherever possible. It might take longer and is less comfortable, but with cash I directly know how much money I have with me and I don't face the risk of spending more than I have. My credit card I only take with me on vacations as something for emergencies. When going to a foreign country I exchange money beforehand and always bring cash with me. Maybe I was just lucky so far, because I didn't get robbed yet. Overall I would say that people that want to have a closer oversight over their money will stock to cash and avoid credit cards.

[Synchronice]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy?

Someone who exclusively uses cash for their purchases either lives in Germany or is very old and can't befriend with modern technics or cares about privacy and doesn't want to show bank whatever he or she buys.

Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I have never used credit card but I often use debit card, it's annoying to play with paper and coins. By the way, there is nothing wrong with borrowing money, sometimes it's necessary and beneficial, it's not a coincidence that many rich companies have a huge debt too. Debt is an art itself, if you master it, you'll succeed because debt can bring profit. ‎Robert Kiyosaki speaks interestingly about debt, I suggest you to check his speeches.

[justdimin]

I think there is no difference - spending cash or money from a credit card. Both are a waste of money. In order not to be a spender, you need to have a special mindset. For example, my thinking changed a lot after Robert Kiyosaki's book Rich Dad, Poor Dad. I immediately realized that money is not an element of what allows you to buy. And the fact that money is a tool for earning even more money. Therefore, you need to save and save, and if possible, buy bitcoin cheap and sell it for a high price. It was then that I learned the technical analysis of prices, and the concept of Compound Interest.

Of course, there are differences. Those who spend cash must be the one's who waste money, but not literally if they spend it on the things that they truly need like food, medicine and basic clothing.

There is no way we can avoid to spend because we are only humans and almost everything thing or move that we do requires a money but you can also use your cards if you have one. Maybe what you mean is how to not be an over-spender. Money is actually an element you can use to buy something or to avail some service, but yeah you can use your money to be able to earn more money. Only keep in mind that it is still possible to earn money even if you don't have any of it.

[DrBeer]

Taxes/fees paid when you use your credit card are high, and in countries with a lot of devaluation/inflation is getting higher. The majority of people I know is using them only because they don't have the money to make a one-time hard cash payment.
Sure there are some "benefits" like travel points, refund of some taxes, etc., but this only shows that either the fee you are paying for using the card is already high, or the government wants control over the spending of their citizens.

That's where you're badly mistaken. For example, Visa/Mastercard credit card from PrivatBank/Monobank/PUMB and similar system banks in Ukraine has no subscription fees and additional commissions.
On the contrary - many cards offer additional services - cashback from purchases, payment of services without commission (e.g. utilities), interest-free short credit facilities (up to 60 days), interest-free purchase in installments up to 24 months (usually for household appliances, furniture, etc.). Perhaps there are some problems with the banking system in your country, but in my country bank credit cards are an objectively convenient and cost-effective financial instrument. But as with any tool, you need to know how to use it, so as not to harm yourself.

[angrybirdy]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy?

Someone who exclusively uses cash for their purchases either lives in Germany or is very old and can't befriend with modern technics or cares about privacy and doesn't want to show bank whatever he or she buys.

Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I have never used credit card but I often use debit card, it's annoying to play with paper and coins. By the way, there is nothing wrong with borrowing money, sometimes it's necessary and beneficial, it's not a coincidence that many rich companies have a huge debt too. Debt is an art itself, if you master it, you'll succeed because debt can bring profit. ‎Robert Kiyosaki speaks interestingly about debt, I suggest you to check his speeches.

Precisely! there's nothing wrong in borrowing money as long as you'll be using it in necessary things like daily needs in life and other important purchases. Before, I'm against in using credit card because it is credit and I don't want to have any debt in bank but lately I realized that there's so much more benefit in using it just like shopping discounts and cashbacks, also some credit cards offer 0% interest and installment if you need to buy something like appliances. Also it is convenient to use since you don't need to withdraw a money which is hassle for me because of ATM line and ATM withdrawal fee.

[AicecreaME]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

I can't deny the fact that using a credit card when you buy something makes you different from others, I mean for some people they use it to be cool, and to show that they have a lot of money to spend, but not all credit cards users are wealthy people, others just don't have any idea what's the disadvantage of using one or they just love to brag.

Paying in cash is much cooler for me, and I am complacent that I don't have a high interest fee to pay when it's time to pay. I've had a friend who pay a large debt because he used his credit cards like crazy not knowing that he needs to pay the interest by using a credit card.

[Biznesmen]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

No, using a credit card doesn't demonstrate your financial literacy, but using it wisely does. I don't really think getting rid of your credit card is the best solution for your debts. And I don't definitely think credit cards are the reason that you become a debtor, but your carelessness and ignorance are. When you don't know how to control and make good decisions for yourself, then why are you blaming technology? It's like a "blaming the victim" situation. So if you want to use your credit card properly, then learn how to use it, or you will blame your credit card again. The only solution for this is to just learn and don't take what you can't return. And I strongly believe a credit card is like a friend and a solution for me if you use it properly.

[Hewlet]

Discipline! Discipline! Disciple! Is the number one factor here.
I know, that not using credit cards limits how frequently we make unnecessary transactions and somehow that plays a good role in increasing our saving habits but that shouldn't close the fact that it is more convenient to make transactions via your credit card and because the world has seriously evolved past the stage of going out with huge physical cash as there is a high chance of theft or chances that the money can get missing, the credit card becomes a necessity for all.

If you are disciplined enough you will be able control how frequent you make transactions using your debit card.

You can also decide to open an account for savings without collecting a debit card and have another which is for spending. Then you deposit a budgeted amount you wish to spend for the month into the account and you try not to spend more than that amount every month and that way you will be guided on how much you are to spend on a regular bases.

[lixer]

I don't have credit card but I use pay later services on ecom sites because with this payment method returns are faster, I pay the accured amount before the due date, it increases my credit score which is extra bonus, I find nothing wrong with it despite in past myself despising credit cards.

Whether literate or otherwise, credit cards are fine as long you pay on time. It might be hard to do so for CC addicts, hence may be financial advisors recommend using cash for payments.

It depends on how much self-control one has if they have a credit card because lack of patience and self-control can make people do things that they might regret later but since the credit card allows them, they go with it. Things like gambling or buying things that aren't necessary and are expensive must not be done with credit cards because if you are using cash, you won't be able to do that once you are out of cash, but with a credit card, you are allowed to do anything to a certain limit because the bank or credit card company will get fees, interests, and taxes in return for that and they wouldn't want you to stop.

So a person who knows their nature and understands that they don't have self-control and can't be careful with their purchases or if they are addicted to gambling should avoid having a credit card and should only use cash for payments where needed so that they only spend what they own.

[mindrust]

It is all relative. Debt can be good sometimes. When the interest rates are lower than the interest rates, it is a brilliant idea to borrow money because the prices will go up in value faster than the interest you are going to pay. As long as you know what you are doing cc or cash can be better in different situations. People go nuts when they hear the word “debt” but they don’t know how amazon become that big. They paid no taxes because they borrowed so much money and made investments. That’s a loophole in the taxing system which everyone can take advantage of. There are two kinds of debt: Good debt and bad debt. If you are borrowing money to build something productive, then it is good debt.

[stomachgrowls]

Discipline! Discipline! Disciple! Is the number one factor here.
I know, that not using credit cards limits how frequently we make unnecessary transactions and somehow that plays a good role in increasing our saving habits but that shouldn't close the fact that it is more convenient to make transactions via your credit card and because the world has seriously evolved past the stage of going out with huge physical cash as there is a high chance of theft or chances that the money can get missing, the credit card becomes a necessity for all.

If you are disciplined enough you will be able control how frequent you make transactions using your debit card.

You can also decide to open an account for savings without collecting a debit card and have another which is for spending. Then you deposit a budgeted amount you wish to spend for the month into the account and you try not to spend more than that amount every month and that way you will be guided on how much you are to spend on a regular bases.

Indeed! Discipline and self control on which you would really be needing this thing in the first place because if you wont then most likely you would really be messing up your life  with credit cards.
I have that horrible experience and past about credit cards on which i have been paying for minimum amount due for almost 2 years on which simply means that paying up only the interest
because i cant really be able to repay it in full on which i did suffer on paying it up for a while and promise myself that i would really be never on carelessly be using up my credit card
if it wont really be that necessary. Its really that a lesson learn for me on which you would really be having that kind of impression on the time that you would really be
experiencing for yourself.

Its true that it is really that indeed beneficial if you do really know on how to make use of it, it turns out that people or humans are really that not much in concern about their spending.
As long they do know that they are really that capable on doing things then this is where they would really be that using up things without even
knowing about the risks. They would really be only mindful when they are experiencing problems.

[Ben Barubal]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

  Rather than demonstrating financial acumen, owning a credit card demonstrates the ignorance of other credit card users. The majority of credit card users are still deeply in debt. Rather than having no debt, you or we caused ourselves pain by doing something that caused us to have a problem.

  Others even say that they wish they had never asked for credit in the first place. While having credit is nice in the beginning, you'll first notice and determine whether you have it when you start making monthly payments. Is financial literacy a legitimate term?

[gunhell16]

There are those who are poor but knowledgeable in financial literacy—I mean, the poor—who struggle to get out of poverty and create a life through a tiny business that, with time, increases till it grows.

However, when the others here started their tiny business, they did not have credit cards. They may not have been aware of financial literacy, but the fact that they have built their little business demonstrates that they are doing things that necessitate proper financial awareness in order to manage the firm they established.

Others merely use credit cards to keep up with trends or with social climber pals.

[Promocodeudo]

This is choice, if I decide to use cash for purchase or payment of any stuff I want to buy, it just my personal decision and reason best known to me, from my personal view I don't think that anyone that's using cash for payment is exhibiting financial literacy, personally I spend a lot when I have cash in my possession this differs with individuals, people tends to like different form of payment and is personal, when I use credit card for pay am always very careful about my expenses, am very discipline with money in general, I have the knowledge that any amount you spend will never come back to you, this have reposition my level of expense, I don't like to mismanage money knowing fully well that it was not easy for me to get it.

[DabsPoorVersion]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

  Rather than demonstrating financial acumen, owning a credit card demonstrates the ignorance of other credit card users. The majority of credit card users are still deeply in debt. Rather than having no debt, you or we caused ourselves pain by doing something that caused us to have a problem.

  Others even say that they wish they had never asked for credit in the first place. While having credit is nice in the beginning, you'll first notice and determine whether you have it when you start making monthly payments. Is financial literacy a legitimate term?

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

[Inwestour]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

[Yogee]

[....]
It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money.

I've never seen a credit card with zero available credit. What kind of CC is this?
This is probably the third time in this forum that I've read about a CC that you can top up. Can you give us a link so I can understand better as it looks like you are referring to a debit card.

It's better to have a credit limit from the CC that I am familiar since this allows you to control your spending.

[DabsPoorVersion]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

Is this a debit card or real credit card?
In our country credit cards have a credit limit, however, some do not have a limit (unlimited) if they are approved with a black card. This is the first time I heard about a credit card with no limit and only uses your available money. If a function like this is available, better to apply and use this to avoid overspending.

[dunfida]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

Is this a debit card or real credit card?
In our country credit cards have a credit limit, however, some do not have a limit (unlimited) if they are approved with a black card. This is the first time I heard about a credit card with no limit and only uses your available money. If a function like this is available, better to apply and use this to avoid overspending.

Dont know if those black cards exist without having that kind of limitation on which i do only read these things on a book. 
If this one really exist then for sure it is really just to those elites who are really that eligible on holding that card and its not something that ordinary person could get a hold of.
For credit cards then the banks would really be deciding on how much credit limit that they are putting and we know that you are really that giving out those income information and other related stuffs
and they are the ones who would really be putting up those limits and of course they cant really just give out some limits if they do see that you arent that qualified for that.
Banks are smart they cant just give out so easily if you cant be able to repay it on time on the moment you had reached our your max limit.

Debit card is different literally on which it would really be that basing on the money that you had saved up into that account.
So it would really be understandable on how much you could only spend.

[slapper]

Using a credit card will put you in debt, but knowing your limits and how to use credit cards accurately will make you able to pay your credit card expenses while enjoying the rewards/benefits. The majority of credit card holders do feel like they can purchase anything they want, which is a common mistake, especially for new credit card holders.

If only most credit card users know how to handle their usage of their credit cards they won't think that way. Having a huge debt is their own mistake for spending over their budget, instead of identifying first the limit of their capability to pay the credit cards, they tend to purchase more than they can pay.

It’s better to use a card that doesn’t have an available credit limit, this will save you from a lot of problems. And this is not as difficult as it might seem, you simply reduce your credit limit to zero, or better yet, open a card at the bank on which the credit function is not available. Then you will add some amount to the card and use only your available money. And if you allow uncontrolled spending of money, especially credit, for which you will still have to pay interest, then this will only be unnecessary additional expenses.

Is this a debit card or real credit card?
In our country credit cards have a credit limit, however, some do not have a limit (unlimited) if they are approved with a black card. This is the first time I heard about a credit card with no limit and only uses your available money. If a function like this is available, better to apply and use this to avoid overspending.

Dont know if those black cards exist without having that kind of limitation on which i do only read these things on a book. 
If this one really exist then for sure it is really just to those elites who are really that eligible on holding that card and its not something that ordinary person could get a hold of.
For credit cards then the banks would really be deciding on how much credit limit that they are putting and we know that you are really that giving out those income information and other related stuffs
and they are the ones who would really be putting up those limits and of course they cant really just give out some limits if they do see that you arent that qualified for that.
Banks are smart they cant just give out so easily if you cant be able to repay it on time on the moment you had reached our your max limit.

Debit card is different literally on which it would really be that basing on the money that you had saved up into that account.
So it would really be understandable on how much you could only spend.

These cards aren't fiction; they're a reality for the financial elite, a symbol of creditworthiness and high economic standing. I've read the same books, seen the same stories, but I know for a fact that these cards exist. They're not for the average person; they're for those who have reached a pinnacle of financial success that most can only aspire to

Now, when it comes to credit cards, banks are indeed the gatekeepers of credit limits. I know this because I've dealt with these institutions extensively. They scrutinize your income, your financial habits, your credit history before they assign you a limit. They're not in the business of handing out free money. They want to know, can you repay what you borrow? If the answer is uncertain, they'll tighten the reins. It's not personal; it's prudent economics

As for debit cards, they're different . They're tied directly to your money, your savings, your financial reservoir. The limit is what you have; it's your money, after all. It's straightforward, no illusions of extra wealth. It's a reflection of your financial discipline, how much you've saved, not how much credit a bank deems you're worthy of. It's a practical tool for practical spending, nothing more, nothing less

[Inwestour]

I've never seen a credit card with zero available credit. What kind of CC is this?
This is probably the third time in this forum that I've read about a CC that you can top up. Can you give us a link so I can understand better as it looks like you are referring to a debit card.

It's better to have a credit limit from the CC that I am familiar since this allows you to control your spending.

Contact the bank where you have the card and ask them about the available products, they will provide you with all the information you need. Most likely, you can open a simple card for payments, without a credit limit, but if you don’t need this and want to have a credit limit and control it, then there are no problems with that, just use what is more convenient for you.

Sometimes I see credit programs that allow you to pay for goods with virtually no overpayments, apparently these are some kind of sales or something like that, so a loan is not always bad.

[DabsPoorVersion]

snip

snip

snip

Dont know if those black cards exist without having that kind of limitation on which i do only read these things on a book. 
If this one really exist then for sure it is really just to those elites who are really that eligible on holding that card and its not something that ordinary person could get a hold of.
For credit cards then the banks would really be deciding on how much credit limit that they are putting and we know that you are really that giving out those income information and other related stuffs
and they are the ones who would really be putting up those limits and of course they cant really just give out some limits if they do see that you arent that qualified for that.
Banks are smart they cant just give out so easily if you cant be able to repay it on time on the moment you had reached our your max limit.

Debit card is different literally on which it would really be that basing on the money that you had saved up into that account.
So it would really be understandable on how much you could only spend.

These cards aren't fiction; they're a reality for the financial elite, a symbol of creditworthiness and high economic standing. I've read the same books, seen the same stories, but I know for a fact that these cards exist. They're not for the average person; they're for those who have reached a pinnacle of financial success that most can only aspire to

Now, when it comes to credit cards, banks are indeed the gatekeepers of credit limits. I know this because I've dealt with these institutions extensively. They scrutinize your income, your financial habits, your credit history before they assign you a limit. They're not in the business of handing out free money. They want to know, can you repay what you borrow? If the answer is uncertain, they'll tighten the reins. It's not personal; it's prudent economics

As for debit cards, they're different . They're tied directly to your money, your savings, your financial reservoir. The limit is what you have; it's your money, after all. It's straightforward, no illusions of extra wealth. It's a reflection of your financial discipline, how much you've saved, not how much credit a bank deems you're worthy of. It's a practical tool for practical spending, nothing more, nothing less

Yes, I'm referring to Amex black card. This is not a fiction but only being issued to ultrawealthy people or the high-spending people with the capability to pay whatever the amount is. Meaning, only a few people have this. AFAIK, even with having no spending limit, Amex black card has a requirement for expenses to be paid in full every month. Aside from that, a black card is not a type of credit card you may apply, it's only being issued to selected individual thru invitation only.

[btc78]

Owning a credit card is tempting you to buy those things even you cant afford it in cash. I know there is nothing wrong with it but you will tend to buy useless things. I am living in a country where if you have a credit card you are in the middle class to the rich and most of what I've heard is that they have a credit card for credit score because of discounts and take out big loans but for me it is still better paying in cash mostly if I want to buy stuff and not tempted to buy it using a credit card.

the temptation to buy things you don’t need is huge when you have a credit card but that’s not all there is to it

credit cards allow you to pay things like medical bills wherein in some cases it’s unexpected and out of budget you can’t put health aside so it’ll be really helpful if you had the choice to pay with a credit card if you don’t have the money currently you can also pay for home repairs and buy house appliances if you really need it instead of enduring whatever it is that’s wrong in your house

[benalexis12]

Discipline! Discipline! Disciple! Is the number one factor here.
I know, that not using credit cards limits how frequently we make unnecessary transactions and somehow that plays a good role in increasing our saving habits but that shouldn't close the fact that it is more convenient to make transactions via your credit card and because the world has seriously evolved past the stage of going out with huge physical cash as there is a high chance of theft or chances that the money can get missing, the credit card becomes a necessity for all.

If you are disciplined enough you will be able control how frequent you make transactions using your debit card.

You can also decide to open an account for savings without collecting a debit card and have another which is for spending. Then you deposit a budgeted amount you wish to spend for the month into the account and you try not to spend more than that amount every month and that way you will be guided on how much you are to spend on a regular bases.

Maybe from another angle it can be said that there is knowledge in financial literacy; if they really know that thing themselves, I think it's fine to have a credit card as long as it doesn't affect their lives.

The credit card is actually helpful as long as you know how to control yourself when using it, because if you don't, you will be really deep in debt because of the amount of interest they charge on it. What is really needed is discipline and knowing how to implement self-control.

[Peanutswar]

Having a Credit Card (CC) is a responsibility, the main concept of the CC is just a pay later if you think on yourself that you are capable of paying those things you swipe with your CC you do not need to worry about the due, reason why there's a lot of people scared with the CC is they mishandle their cards properly they as always late with the due date cause another penalty every due date they missout lend to the number of increasing of penalties they need to pay, but if you are a responsible holder for sure you will enjoy the perks of using the CC.

[Yogee]

I've never seen a credit card with zero available credit. What kind of CC is this?
This is probably the third time in this forum that I've read about a CC that you can top up. Can you give us a link so I can understand better as it looks like you are referring to a debit card.

It's better to have a credit limit from the CC that I am familiar since this allows you to control your spending.

Contact the bank where you have the card and ask them about the available products, they will provide you with all the information you need. Most likely, you can open a simple card for payments, without a credit limit, but if you don’t need this and want to have a credit limit and control it, then there are no problems with that, just use what is more convenient for you.

Sometimes I see credit programs that allow you to pay for goods with virtually no overpayments, apparently these are some kind of sales or something like that, so a loan is not always bad.

I don't have any yet as I said before but I'm pretty much aware about cards having credit limits and those without which is only available to the elites. What I really want to know is the type of credit card that you mentioned previously but you didn't answer that one. I think you were only referring to a regular ATM card or a debit card

[philipma1957]

I don't have credit card but I use pay later services on ecom sites because with this payment method returns are faster, I pay the accured amount before the due date, it increases my credit score which is extra bonus, I find nothing wrong with it despite in past myself despising credit cards.

Whether literate or otherwise, credit cards are fine as long you pay on time. It might be hard to do so for CC addicts, hence may be financial advisors recommend using cash for payments.

The key 🔑 is if you have proper discipline. CC can make you lots of money 💰 in rebates etc.

Or cost you lots of money if you are an addict.

[bayu7adi]

Having a Credit Card (CC) is a responsibility, the main concept of the CC is just a pay later if you think on yourself that you are capable of paying those things you swipe with your CC you do not need to worry about the due, reason why there's a lot of people scared with the CC is they mishandle their cards properly they as always late with the due date cause another penalty every due date they missout lend to the number of increasing of penalties they need to pay, but if you are a responsible holder for sure you will enjoy the perks of using the CC.

Sure, credit cards have their own unique purposes and markets. We can't force a busy entrepreneur who's caught up in meetings and evaluating their company's sales to carry around cash. Credit cards play a central role when used by the right people and in a smart way. it might not be the best choice financially, but it can be a real time saver. Wealthy individuals already have a lot of money, and they need quick and simple transactions. it's like choosing a business class flight ticket, where your priorities are time and comfort.

When someone can make a lot of money quickly with a small job, they can focus on making more money using their credit card. Yes, you can save time and be efficient with a credit card.

For those who don't have much money, it's essential to consider alternatives to credit cards... because it can turn into a financial disaster if not use a credit card wisely.

[YUriy1991]

For those who don't have much money, it's essential to consider alternatives to credit cards... because it can turn into a financial disaster if not use a credit card wisely.

That right. Everything is a facility for making money and there are always definite advantages and disadvantages, it all depends on the purpose and use for what. If indeed we fall into the upper middle class category, I think it's safe because there are posts that can cover the monthly bills. But, if it is upside down, it's wise not to use it yet.

With a credit card we can also buy BTC As long as we find an exchange that supports our country. Apart from that, the security factor is also still vulnerable, where paying with a credit or debit card requires sending sensitive banking information which can be stolen.

[shield132]

It is all relative. Debt can be good sometimes. When the interest rates are lower than the interest rates, it is a brilliant idea to borrow money because the prices will go up in value faster than the interest you are going to pay. As long as you know what you are doing cc or cash can be better in different situations. People go nuts when they hear the word “debt” but they don’t know how amazon become that big. They paid no taxes because they borrowed so much money and made investments. That’s a loophole in the taxing system which everyone can take advantage of. There are two kinds of debt: Good debt and bad debt. If you are borrowing money to build something productive, then it is good debt.

Is there similar loophole in taxes in every country? Probably not. I have also never seen inflation higher than interest rates on debts because in my country agreement gives banks right to increase interest rate if inflation significantly grows.

However, when the others here started their tiny business, they did not have credit cards. They may not have been aware of financial literacy, but the fact that they have built their little business demonstrates that they are doing things that necessitate proper financial awareness in order to manage the firm they established.

They may not have been aware of financial literacy but they built business in a niche where they didn't have competitors. When this niche becomes mainstream niche and you have a company that started this niche and matured in this niche, then you'll naturally mature in financial literacy, like Amazon.

[Poker Player]

It is all relative. Debt can be good sometimes. When the interest rates are lower than the interest rates, it is a brilliant idea to borrow money because the prices will go up in value faster than the interest you are going to pay. As long as you know what you are doing cc or cash can be better in different situations. People go nuts when they hear the word “debt” but they don’t know how amazon become that big. They paid no taxes because they borrowed so much money and made investments. That’s a loophole in the taxing system which everyone can take advantage of. There are two kinds of debt: Good debt and bad debt. If you are borrowing money to build something productive, then it is good debt.

Is there similar loophole in taxes in every country? Probably not. I have also never seen inflation higher than interest rates on debts because in my country agreement gives banks right to increase interest rate if inflation significantly grows.

I don't know what happens in all the countries of the world, but in general, the legislation is similar. You don't pay taxes for taking a loan, otherwise nobody would do it.

As for the inflation issue, what happens is that the banks make a calculation. If you make a deposit they pay you less than inflation and if you ask for a loan they make you pay more than inflation. For these calculations they base themselves on recent history and on the rate policy forecast, but there are times when they cannot foresee a rise, as happened recently, when mortgages had been given at very low rates and because of the inflation crisis the central banks started to raise rates quickly. Then the borrower who borrowed at low interest rates came out ahead.

[mamesso]

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

There are always positive and negative sides, including using credit cards for shopping. Although on the one hand having a credit card looks profitable, there are also negative impacts. You need to be more careful when using it because there have been many stories about how much negative impact there is due to not being aware of the amount of money spent due to all the convenience of making transactions with a credit card.
It seems so easy for someone to swipe a credit card without thinking about how much money they still have. This will cause debt to increase and ultimately make it difficult to pay it. It is easier for someone to control their finances when they shop using cash rather than a credit card. Using cash can also increase discipline in spending the money that has been allocated for living expenses in a month.

[mihaybus]

Strange title of the topic. When I was still at university, we were told that money from a credit card is easier to spend than cash.

It's human nature and psychology. You swipe your card, pay, then put it back in your wallet. You have no awareness that you “gave” something. With cash it's the opposite.

That is why the more powerful the “currency”, the easier it is to spend it. That is, it is easier to pay 2 euros than 200 rubles (and doesnt matter that it is the same in terms of exchange rate).

[blckhawk]

To some degree yes but for me to decide if they really are a financially literate person when it comes to using credit card, I think that I have to know how they use the credit card and how they can take advantage of it because there's an advantage to using credit cards especially if you know a few tricks to them. If they are using the credit wisely by paying the credit due on the right time to prevent interest rates from creeping in and maximizes on the perks of the credit card like airline miles then I would probably say that they're financially literate at the highest level in my opinion although I would still consider someone to be financially literate even if they don't maximize the perks of having a credit card, paying your credit card on time is still the most responsible thing that you can do.

[mirakal]

There are many advantage and disadvantages to using a credit card. However, I have lived all my life in a country where all we use is debit card so I may not be able to speak from personal experience about using a credit card. What I know is that from where I am from, debt is a bad thing. You do not want to be in debt so we learn to pay for every straight from our bank account using our debt card. We do not see debt as a good thing and no one is applauded for being in debt. In fact the measure of financial literacy is avoiding debt in all its entirety.

Well, using debit card is probably more advisable if you don't have cash onhand rather than resorting into using credit card which if you have hard time on self-discipline, you will really cross your limits in your credit limit. The reason why I don't encourage everyone to use credit card because aside from high interest charges and credit card fees, the possibility to overuse it is very high.

Also, I couldn't agree less that using credit card demonstrates financial literacy. Otherwise, if that would be the sole basis, a lot of people will be drown into debt and become highly exposed into financial illiteracy instead.

[icalical]

Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.

Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?

From my experience living in a country where credit card is not very common, I think the influence of credit card is not that significant, because even when most poeple around me are using only cash and/or debit card, they still spend their money recklessly. I think more important aspect is their environtment and peers, if we live in a remote area where there is not much thing to bought I bet we will spend our money more wisely. But when we ilve in big city, where there are so many accessible entertainment, tech and many other thing to be bought it will be easier to spend our money in all those things that we don't actually need.

[PrivacyG]

Strange title of the topic. When I was still at university, we were told that money from a credit card is easier to spend than cash.

It's human nature and psychology. You swipe your card, pay, then put it back in your wallet. You have no awareness that you “gave” something. With cash it's the opposite.

From personal life and experience.  I can confirm this is true.  When you pay with Cash you open up your Wallet and see how much there is left.  When paying with Card you do not always check how much there is left.  You just swipe the Card or touch the phone.  I am often surprised by my Card balance because I think I spend less when the opposite happens really.  Almost always it is that I spend over the limit I set.

[Hispo]

I believe people sometimes can over react or exaggerate the dependence people can have because they use of their credit cards, in my opinion. It is true that debt is undesirable, specially if makes one's life more difficult and we tell interests to accumulate, etc. But in the end a credit card is a tool and its efficacy or the harm it can do against us fully depend on the way we manage it.

Besides, are we supposed to ignore the fact creditors have imposed the system of credit score onto the population of the United States and most of the countries in Europe,etc? Someone who manages to live fully on cash will have not credit score, so they will likely have no chance to get a loan to buy a vehicle or a house, and there is when things get more complicated, because it is a completely different story to try to buy a house or a car fully with credit. Most of people cannot do so, that is for sure...

[LesterD]

Strange title of the topic. When I was still at university, we were told that money from a credit card is easier to spend than cash.

It's human nature and psychology. You swipe your card, pay, then put it back in your wallet. You have no awareness that you “gave” something. With cash it's the opposite.

From personal life and experience.  I can confirm this is true.  When you pay with Cash you open up your Wallet and see how much there is left.  When paying with Card you do not always check how much there is left.  You just swipe the Card or touch the phone.  I am often surprised by my Card balance because I think I spend less when the opposite happens really.  Almost always it is that I spend over the limit I set.

Maybe you are not responsible enough when it comes to using your credit card. Using a credit card was supposed to be an easy way to pay your purchases and bills. In terms of payment, if you have purchased an item, you can pay it immediately to avoid losing track of your purchases.  This way, you will never be surprised by your credit card bill. You just have to be responsible so you can enjoy the advantages of using a credit card.

[siniminomorocomunisakito]

For speed, credit cards will likely be fastest. It seems like your analysis is absolutely correct. If we really use a credit card, we get advantages from the features it contains, I don't think there's anything wrong with that, however, if it makes it difficult or we find it difficult to pay the bill later, it's better to just postpone that wish for a moment. When it's time to use it, I think.
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