In Debt?

Short answer – no. There is a reason for that, and that is my credit cards has a minimum of 25% APR. This means for every year that I owe $100, I have $25 in interest. This is a lot of additional money to pay back. With that in mind, I use my credit cards as if they were debit cards. The only difference is I pay my credit cards in full in the second week of the month once all of my bills are processed through. Once that happen, the cards are paid in full, and what’s left is discretionary spending.

If there was an instance where I would need to take longer than a month to pay the card (such as a major purchase), I will use the card that is in my best interest, and buy whatever I would need. The only instances where I will see me having to do this is either my computer, or phone. Most other things can be saved up for or drawn on my emergency fund. If I ever draw on my emergency fund, I will not have discretionary spending opting to rebuild the emergency fund.