Optimal Finance Daily - Financial Independence and Money Advice
3061: 7 Expenses To Never Put On A Credit Card by Michelle Schroeder-Gardner of Making Sense of Cents
Mar 4, 2025
Michelle Schroeder-Gardner, a financial blogger known for her insights on personal finance, shares critical advice on smart spending. She discusses seven expenses—like furniture, weddings, and vacations—that should never be put on a credit card unless fully repayable immediately. Michelle emphasizes the hidden costs of financing these purchases, highlighting how wedding debt can lead to stress and conflicts. She also advocates for effective strategies to manage medical bills without resorting to credit, encouraging smarter budgeting and financial peace.
10:36
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Quick takeaways
- Avoiding credit card usage for significant expenses such as weddings and vacations helps prevent long-term financial strain and stress.
- Prioritizing cash payments over credit for large purchases like furniture and medical bills maintains better financial control and minimizes debt.
Deep dives
The Risks of Credit Card Usage
Using credit cards can lead to significant financial problems if not handled responsibly. They can result in high interest charges, late fees, and a damaged credit score, which can cause stress and financial hardship. Many individuals may spend beyond their means because credit cards create a false sense of affordability, as purchasing items with credit doesn't involve immediate cash outflow. Therefore, being cautious about the type of expenses charged on credit cards is essential to avoid falling into debt traps.
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