A discussion on how we use credit cards and how we budget with them.
Email from listener:
My husband and I are working to get on a new budget as our last budget was not working. We recently paid off credit card debt from the help of family as it was sinking us. While our income was good, credit card debt accumulated and put us in a financially scary place… My question is you mentioned each having separate credit cards for your individual “fun” money and I believe you said you charge all of your monthly expenses and then pay off before interest is charged. Do you have a 3rd card for this? We are trying to look at our money and budget differently as it’s easy to use our debt card to pay everything and leave nothing left.
We use our credit cards for everything except for the house, car, utilities that have a fee if using a credit card, and paying off the credit cards themselves.
Our credit cards are treated like cash, in that we only buy what we can afford and have in our bank account. The credit card just gives us some accountability and helps streamline our bill payment.
Every Dollar: Great app, but we still like our spreadsheet