Why We Still Use Credit Cards

Yes, you read the title of this post correctly. We still use credit cards. There, I said it. I guess you could say we’re sort of rebels. We do in fact continue to use credit cards while we’re paying off debt, and it has nothing to do with maintaining our credit score. And most importantly, we’re not using them to accumulate more debt. I already talked a little bit about how frugality isn’t a one size fits all method when I posted why we still have a landline phone. Continuing to use credit cards falls into this category for me.

But let’s be honest. For some, using credit cards while paying off debt is an absolute no-no. We’re told that we need to hide the cards, remove them from all online accounts, and STOP any and all spending on our credit cards. Some even go so far as cutting up the actual cards and closing out zero balance accounts.

But we don’t. And here’s why.

Back in June 2010, my husband and I were in the middle of moving across state. This relocation was why I was dual enrolled in two universities while I finished my Masters degree and teacher certification. Until we were able to secure a place to rent, Hubs was living with his parents while working his new job.

Bookworm, Monkey and I were still where we had been for the last 18 months of grad school. I had a couple hundred dollars in my account for food and bills during the next few weeks. We had been searching for a place to live for the last 4 months, and having the worst luck since most of the housing was taken by temporary gas field workers. {The Marcellus industry had hit its prime at the time.}

One day, while making lunch for the boys, I got a phone call from my bank. There was some suspicious activity on my account, and they wanted to confirm that the transactions were indeed me. Needless to say, they weren’t.

I had an account breach. Someone hacked my iTunes account and had my debit card number. They then went and spent hundreds of dollars between xBox, Playstation and Nintendo subscriptions, as well as new consoles and games. The most interesting charge, one that I still laugh about to this day, was a $2.49 charge at a bar & grille in Michigan. I’ve never been to Michigan, although I have to say that I’m tempted to go simply to see what is on their menu could be gotten for such little money!

My account had been drained. There were still some pending charges, and there were quite a few overdraft fees too. The bank manager was able to deny charges that were still pending, but there was nothing she could do about the ones that had already been approved. Or the overdraft fees.

In order to start the process of getting my money back, I had to file a police report and give the bank a copy of the affidavit. Then I had to call each company and cancel all subscriptions with my debit number. The review process took 5 months in total, and in the end I was given back all of my money. Minus the overdraft fees.

Let me tell you, those months were some of the MOST stressful days of my life.

Fast forward to last year. In October 2015, we travelled to Pigeon Forge, Tennessee with Hubs’ parents. We were splitting the cost of the 15 passenger rental van with his parents. We used a credit card for the rental {it was paid in full when we received the bill}.

Within a month, Hubs had noticed a $110 charge to Costco on his card. The closest location that Costco is to us is a 3 hour drive away, so it’s not worth it to us to even have a membership. He disputed the charge, and the money was returned to him instantly. Then in February of this year, he noticed two more charges on his card, this time totalling close to $1,200. Again, Hubs disputed the charges and the charges were taken off the card. This time he also requested a new card number.

We still use credit cards because, as I’ve experienced, it is not hard for our bank account to be wiped out. It is even harder to get your hard earned money back.

I realize that most financial gurus suggest you use cash all the time. But there are times cash is simply not convenient. It’s honestly more convenient for me to swipe my card at the gas station when the temperature is 15 degrees and the wind is whipping. It’s not convenient to unbuckle everyone, drag them in the store, just so I can hand over some cash.

For us, it’s a give and a take. We use credit cards is so our money remains our money. Not so someone else can have access to our bank account to use as they see fit. But at the same time, we are wise about where we use them, and make sure that the purchase is budgeted for.

Am I writing this to suggest that it’s okay to continue to use credit cards while you pay off debt? Absolutely not. If you haven’t changed your mindset on how you spend your money, nothing is going to change.

I’m simply writing this for full disclosure on how we designate our money. We are very meticulous about how we are using our credit cards, making sure that each use is allocated in our monthly budget. For us, using our credit cards in an increasingly digital world, where payments more often than not are made online and accounts can easily be breached, is a way for us to ensure that the money in our bank account remains as our money, and not for the sole purpose of being spent by someone else on gaming hardware. Credit cards give that extra security for us.