Recently, there was an article about reasons to give up your credit cards. There are various thoughts on both having credit cards and not having credit cards.

Studies have shown that in a lot of cases you may spend more if you are using credit cards than if you are using cash. When you use cash you feel the pain of spending the money more and you need to know that you have enough cash with you. Some say that you need an active credit card to have a credit history and good credit rating.

It may be helpful to have a credit card, but it is important to try to be able to pay it off monthly to save on interest and finance charges. If you use a credit card to purchase things on sale and are unable to pay it off at the end of the month, then it was not such a great deal.

Nancy Kvamme

3 thoughts on “Credit card or Not

  1. Dave
    July 14, 2011 at 1:25 pm

    Can you please provide link(s) to the studies?


  2. Nancy Kvamme
    July 15, 2011 at 12:06 am

    Following are a links to a couple of articles. also if you search for the topic more come up.

    According to the article “Cards Encourage You to Overspend” on, people will spend more with a credit card compared to cash. In fact, a Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash. And McDonald’s found that the average transaction rose from $4.50 to $7 when customers used plastic instead of cash.

  3. Nancy Kvamme
    July 15, 2011 at 12:08 am

    Today, I had dental work done and ended up saving $50 by having the money available and being able to write a check today.