A few years ago, I borrowed a friend of mine his house in Punta Cana, Dominican Republic. It is a great place with the most amazing beaches you can imagine !! At that time, everyone, except for my friend of course, starting telling and warning me to be careful, because it is a very dangerous country and it is not safe to be there outside the all inclusive resorts.
Once I got there, I was amazed. The place was very beautiful … and safe. The people went to the grocery store and kept the cars and vans on, to keep the vehicle cool and fresh since the hot is really bad there … I mean, everyone left the cars with the keys on and the engine running meanwhile they were shopping for their goods !!
Then I saw it. The people in the resorts beware you of the dangers of the country, because if you get out of there you would see … you would notice that the same souvenirs you can buy in the resort for 20 dollars, can be found for only one dollar outside there. And instead of paying about 100 dollar daily each one, you can rent a villa for 6 people for usd1000 dollars for the entire month.
You may be asking yourself, what is the relation with these and the credit cards? It is the same. We do not have financial education because if we had, we could see. Once you learn to control your credit cards, you will see the difference between them, you will notice what is the interest rate of each one, you will be able to decide if it is better for you to buy in cash or in multiple payments, to have only one or many, to cancel those credit cards that are not useful for you …. to think carefully about the cards with rewards …
If you control credit cards , they lose. If they control you, they win. Decision is up to you: learn to control your credit cards and to pay off credit cards debt. And you finally will see and will be in control of your finances.