I'm still swimming in debt from the one time I got credit cards. Just before a major hurricane was suppose to hit the coast right where I live. My husband was out of town and couldn't get home (truck driver training school) and with three kids I caught the first bus out of town. Spent every dime I had and got stranded in a town I knew nothing about. All the cards I got I maxed out just to pay bills and get food, now my credit is beyond ruined cause the job he was supposed to get he didn't and we haven't gotten to the point that we can do much of anything to pay the bills off.

I am working on it though. Slowly but steadily.

By the way, I'd just like to add that I think kelkat raises some very good points - you don't *need* a Credit Card simply for the sake of having credit - especially if it's just going to lead someone into bad debt - but my point was simply that there are definite areas where a well-managed Credit Card use can be very useful.

I have a doctor friend that uses his credit card for every purchase and transaction. He then pays the entire amount at the end of the month. He does this to manage finances quickly while keeping a full record of his transactions in one statement. Makes sense.

Too bad not everyone is disciplined enough in making this application one that makes the card work for you and not the other way around.

I agree that a credit card can be useful. As for a debit, most are actually managed by the credit card companies and offer many of the same benefits. You have to know what your rights are AND follow through. They may not give in easily.

I never use my debit card online because the same rules don't apply online for debit and credit cards. Maybe there are some that do, but mine does not. They stand behind brick and mortar store puchases, but not internet.

If I had used my debit card a few years ago I would have not lost $2200 on a computer my husband "just had to have". Can anyone say Shopping Network. Needless to say the whole company was a scam and after the federal governement got their share we only got $900 back. A far cry from what we should have gotten back and the woman at the bank said that IF I had used my debit card the back would have refunded my fulll amount as soon as they learned of the scam.

I'm glad to hear that. My comments were specific to online transaction. Our bank has been real good about all other forms of transactions. Here's wishing you had used your debit card, too. Sorry it was such a pain and needless loss for you.

It was a loss but it was a very good learning experience for myself and my husband. I had already been burned one time before, not quite so badly but he had never been in that situation. Now he looks at everything several times and has a lot more questions before he makes a final move to buy.

You don't have to get burned too many times to get to the point where you can say, "Hey, that hurts!" Bad financial situations do make ya a bit cautious.

LilOne1989 - wouldn't a Credit Card have protected you also? With no delivery, you should have been in a position to chargeback - ie, reverse the transaction directly via the Credit Card company.

I think you need at least one credit card. But you really have to know how to use it. Use it only in emergency, and pay it off right away.

I agree with #1 but don't get a card to begin with.
You can use a debit card just like a visa so that way you don't go into debt. Read the fine print in your banks discloseure.

I found you buy more with money you don't have than you do with cash.

I will probably just say the same old... but...

Yes a credit card is a must, in fact multiple credit cards are a must! When it comes to what is the right number, I have heard so many different answers that I don't think there is an answer.

Credit cards used correctly can get you out of a financial bind, secure your information when online, help you invest in businesses, etc...

It is just important to have the plan and know to pay them off real fast!

Sorry, I have to disagree here.

Debt is crippling this nation. Debt is the underlying cause of companies dropping their retirement programs, governments running huge deficit's and then wondering how they will pay for things they have committed to, and debt is a major factor in marriages ending. Yes, credit can be convenient, sometimes even a lifesaver, but if you are using it to invest, or carrying a balance you cannot afford to pay off right now, you are at risk of the same kind of financial collapse we are currently witnessing in the sub-prime market. SOME TIME IT WILL CATCH UP WITH YOU. And most likely that time will come along when you can least afford to deal with it and you will be driven to bankruptcy.

Some people think BK is OK. Some even use it intentionally to get ahead. They are scum. It has a place, but is used improperly and immorally most of the time. Financial freedom is achieved when you owe no one and are able to stand tall and be proud of your financial integrity. Don't fall into the trap of believing you have to have credit. Carry a debit card. It does everything a credit card does except plummet you into debt.

I agree with Dru, debt cripples the nation but only because the majority of people don't know how to use it wisely. They spend more then they can afford.

Credit Cards are great but you should pay off your balance at the end of the month. If that's not possible I would not suggest to purchase something that you won't be able to repay in three payments (some credit cards offer roughly 60 days without charging interest).

In general, if you can't afford to buy it cash you shouldn't buy it at all.

I refer to credit cards as a tool and if you use it wisely it will not harm you.