This interview (with myself) is in regard to to credit card use as a tool in managing spending.  In almost every situation, it’s advisable to stay as far away from credit cards as you can.  They’re evil, and they can get you in deep trouble…yet I use them anyway.  Keep reading to learn why I choose to live in such a risky manner.

So many personal finance coaches advise against the use of credit cards.  Why do you do use credit cards for so much of your spending?

It’s the easiest way that I’ve found to manage and monitor my finances.  It’s been a great money management tool.  It keeps almost all of my spending in one place.  My finances were getting messy when I tried using cash, checks, and debit cards.  It took lots of my time reconciling all of my spending and figuring out what I had spent and where I had spent it.

Why don’t you just use a Debit card instead?

Solely because I receive rewards for doing my spending with the credit card.  Currently, my card of choice is the Chase Sapphire Preferred card.  I have some airline miles built up and am anxious to do some travelling.  I could use a debit card and accomplish the same money management objectives, but I don’t know of one that pays rewards like some of the credit cards do.

You used to carry a significant credit card debt resulting from many years of undisciplined overspending and you’ve paid massive amounts of interest to the banks because of that.  Aren’t you worried about the possibility getting right back into debt?

I use a monthly budget/tracking spreadsheet that I call my spending plan.  It keeps track of all my income and allocates every penny to where it needs to be and how it will be used each month.  Every penny I’m going to spend with my credit card gets directed into a savings account long before I ever pull out the card.  That way, when the payment becomes due, the money is sitting in savings ready to be transferred into my bill pay account to be sent to the credit card company each month for a full payment of the entire credit card balance.

What do you do when someone doesn’t accept credit cards?

I usually have a couple checks in my wallet.  I can get half a dozen checks from my bank with the account number pre-printed along the bottom.  They don’t charge me anything for them.  I’ve written maybe two checks in the past five years.  It’s rarely a necessity.  Plastic has become the standard.

Even though you are a heavy credit card user, you always recommend to everyone else to stay away from credit cards.  Isn’t that a little hypocritical?

I guess you could say that.  I believe that abusing debt is one of the worst pits that a person can fall into.  I’ve been there.  It’s hell.  I’m never going back there again, and I don’t want to see anyone else there.  For me, the bottom line is that I have a deep passionate desire…an obsession, even…about staying out of debt.  I follow my spending plan religiously.  I’m confident that there is very limited possibility that I could ever revert back to misusing debt.  I can’t say that about anyone I talk to, therefore, it would be irresponsible of me to suggest the use of credit cards to another person.

Did you hear that?  Stay away from credit card use.