A lot of us are pretty 'smart' by owning multiple credit cards that benefit us here and there. But whats the catch? Credit card companies outsmarted all of us. Think about most of the financial gurus out there. Do they swipe everywhere they go? No. In fact, Dave Ramsey preaches to always use cash opposed to credit or even debit.
The problem is that most Americans are in debt. If you are reading this post, more chance than not, you own a credit card that accrues debt. Don't feel disheartened though, because if we found a way into debt, we can always find ways out of it too. If we really look at it, the unfortunate reality of America's debt all rooted from habits. Because credit and debit cards register pain less when swiped than that of cash when we pay for things, we are drawn to use plastic more often. Companies know this human nature very well. Instead of encouraging cash, companies will always encourage paying with financing options, because we register pain even less. Your mind will be tricked that we are only paying about 10% of whatever we bought, when in reality you are paying as much as double for the same product. Next time, try using cash for any purchasing decisions we make. Avoid online purchases at all cost, because clicking a button to purchase takes even less effort than taking out our plastics from our wallets.
Overall, the benefits that you perceive with credit cards and debit cards don't outweigh the amount of money we are spending because of poor habits. We often find ourselves scratching our heads and wondering where all the money went. The magic drainage is really though, only in our control. We can always live without the next and the greatest fill in the blank item that the fill in the blank celebrity wore or your fill in the blank friend bought for his/her birthday. We just have to see through the lies that we're constantly fed. We all deserve to live a life of freedom, unchained from debt. But it all comes back to our own decisions.