The consumer debt in this country is out of control and even the government is saying that this society has to have credit in order to survive. Although debt is a bad thing for anyone because it enslaves that person to the one who owns the debt, credit can be a good thing!
Last year I discovered that some credit cards actually give cash back for all purchases made on the card. We started using the credit card to pay for groceries, any eating out and for gas purchases. At the beginning of the month we set aside the budgeted amount for these items so that at the end of the month we can pay off the credit card balance in full.
Even just using the card for these limited purchases we were able to build up enough cash back to purchase all of our Christmas (although we limit our spending to around $300). This year we switched to making all of our purchases on the credit card. Not only do we expect to have plenty to purchase Christmas, but we may actually have enough to take a short trip as well.
Credit is using someone else’s money but having the money to meet the payment in full. Debt is using someone else’s money and then working off the payment over a period of time because you don’t have the money.
Consumer debt may be out of control and the economy may even be a little chaotic, but you can still find ways to use credit cards to make you money.