Credit cards are always a touchy subject. I’ve made my thoughts pretty clear on why I think credit cards are beneficial to keep around in the past:
- Why you shouldn’t worry about using your credit cards for emergencies
- Some of the many benefits of using a credit card
- A few methods for making your credit card use foolproof
- A discussion on paying off your mortgage vs. credit card
Recently, efforts like the Shred Your Campaign are aiming to get people to get rid of their credit cards for good.
Lending Tree recently asked Jeff from Deliver Away Debt to talk about life without a credit card. As you may know, Jeff has been delivering pizzas for several years now to pay off all of his debt. Here are a few of the points he made:
“It’s not that people like me hate the credit card companies…we come up with a different system to manage our money that works for us.”
“…by cutting up my credit cards, and not looking back, I’ve found it easier to get my finances in order by paying off my bills and other debts…”
“[Using cash] forces you to live within your means and can prepare you for the kind of financial commitment and responsibility that comes with bigger ticket items such as buying a home.”
— Read the full post at LendingTree
Jeff makes some awesome points, and his track record is proof that he walks his talk. There are plenty of reasons to dump your credit cards, and for some people, it’s too much of a temptation to keep around. Jeff recently bought his second home, so clearly his strategy works for his family.
But what works for us is a little different, so when Lending Tree asked me to write a counter-argument to Jeff’s post, I jumped at the chance. Here are some of the reasons I cited for keeping your credit card:
“Better protection from effects of fraud. The fact that credit cards don’t actually touch your real money can be a good thing when it comes to fraud.”
“Benefits. …my American Express card features discounts for many of the popular websites where I shop, and exclusive deals on travel, electronics, and more!”
For all the others, visit my newest post at the Lending Tree blog.
Photo by SqueakyMarmot
Fiscal Fizzle 
My credit card saved my butt. I had to change my reservation with Travelocity and they fradulently charged me almost $800 — more than the initial trip itself. The fee was “only” supposed to be $230. I was getting nowhere with them, but with my cc and bank, I was able to dispute the charges. Had I used a debit card, I wouldn’t have had any protection.