Spend More

• Credit cards are a more convenient method of payment than cash and debit cards. Credit cards offer you the opportunity to pay instantly for items by phone, online and in person. However, the convenience of credit cards also makes it easier for consumers to overspend. Art Markman's 2010 article in "Psychology Today" notes that consumers are less likely to pay attention to pricing when paying by credit card then they are when paying with cash. If you are looking for a way to control your spending habits and monthly budget, credit cards work against you.
  
  "Psychology Today" also notes that credit cards make it harder to budget because it causes you to think conceptually about your money rather than offering a tangible link to your spending like using cash.
  
  

Pay to Play

• Borrowing money is not free. Though credit cards are not traditional loans, they offer you the opportunity to buy now and pay later. In exchange for the temporary loan from the credit card company, you are charged an interest rate on your purchases. Critics of credit cards argue that consumers don't need a loan on their own money and can simply wait until they have the money in hand to make a purchase. Paying a third party to make a purchase wastes money and leads to masses of debt when left unchecked.
  
  

Credit Score Preparation

• One advantage to owning a credit card is improving your credit score. Managing your debt responsibly allows you access to more credit. Credit scores can be improved using installment loans such as mortgages and automobile financing, but you usually need a way to build credit prior to qualifying for a major loan. Unless you plan to owner finance a home or pay for your car with cash, credit cards are helpful in allowing you to build up your credit rating to increase your chances of loan approval.
  
  

Considerations

• Credit cards are a useful tool in managing your financial resources, but they come with many drawbacks. Paying to use a credit card while running the risk of overspending creates financial strain for consumers looking for ways to cut costs and gain better control of their spending habits. Dave Ramsey, a national radio host and financial adviser, contends that credit cards can never be managed responsibly because the intent of credit card companies is to create debt.
  
  However, the overall outcome of your credit card use is dependent upon your ability to manage debt responsibly. If you find yourself overspending on your cards, you can always pay off the balance and use cash for purchases instead.