I dont think that the problem is using cash vs using credit.
When making purchases you should always use someone else's money, because the bank will act more agressively when getting their money back vs your money.
The problem is that people dont know how to manage money.
Personally, I don't carry cash...ever. I may have a 20 for emergencies but other than that I am 100% credit.
But.....I do have a budget and am very cognizant of my spending.
I spent about $30K + on credit last year....
The trick is that it was all on
ONE card...the card stayed below 30% of utilization and I paid on the credit card multiple times a month at a rate of $2K-$4k a month. The balance is never carried over to the next billing cycle. I also received maybe a total of $2-3K in credit card rewards.
If you want to use credit follow these rules:
1. Have
one card be your main card.
A. Your other cards should be kept for emergencies or should be kept active with bills that are consistent (always same amount and same day).
1. For instance, I have a couple back up cards. One bill comes out of each a month. The bills are the same every month. My bank withdraws from my account to pay those bills automatically.
2. Pay on your card multiple times a month.
A. Dont allow your balance to carry over to the next cycle. This way you avoid paying interest but you also get the protections and perks from using credit.
3. Dont use more that 30% of your credit card limit a cycle.
4. Make a budget!!!
A. Map out your expenses. This map should be inline with your income and should be easy to figure out if you are on salary or work consistent hours.
1. A general rule is that your housing expenses should not be more than 30% of your monthly net income. If it's more than this, you are in trouble.
2. At least 5-10% should go to savings.
5. Stick to your budget.
A. If you cant stick to your budget...
1. If you want/have to spend more on one expense...spend less on a different one.