As I had mentioned in an earlier post I’ve had a paradigm shift in how I look at credit cards.  My past attitude is that credit cards were evil without much in the way of exception.  I don’t have the same strong opinion any more.  Before I’m struck down with hate email or comments with great intensity let me clarify that most people who don’t like credit cards, when provoked to a good, long think, will agree with me.  The credit cards that get abused are a symptom!  Just like money isn’t evil by itself, credit cards are not evil by themselves.  If you pay off your credit card each and every month and maximize your return on the credit card’s reward program then the credit card is not a problem for you.

The symptom of debt is actually a symptom of the root problem: lack of self control.  If you understand where your finances are and you maximize your use of the card within the constraints of your budget, you might be able to pay for your family’s vacation in rewards.  James, a long time reader of my blogging (I don’t recall how James found me, but I’ve been grateful for the things I’ve learned from him and his commenting), actually left a comment stating that’s what he does some time ago.

My dad, a financially astute guy, uses his Discover card for as many expenses as he can and maximizes his rewards this way.  I have to admit to thinking this was crack smoking crazy until I realized that I was putting the blame on the wrong thing.  I’m not recommending everyone get as many credit cards as they can or that folks use credit cards if they can’t control themselves when they have access to the credit cards, but I am saying that I recognize that my previous stance was legalism.  As Romans 14:23b states: “…whatever is not from faith is sin.”  Don’t spend a dime that is not spent in reliance on the Lord.  This could be spent virtually with a credit card or literally with cash, but if you’re doing it out of compulsion and not in the abiding life of Christ, then its not the right attitude or way to be spending money in the first place!

This isn’t just a paradigm shift, this is a right-aligning with what the word of God teaches about walking by faith.  If I make a law about credit cards then I have failed to see the fullness of my relationship with Christ in the area I have created the law in.  I died to the law and the nature of the law when I was identified in Christ’s death, burial and resurrection.  I’m going to pay off my credit cards, cancel all but one, and then as I abide in Christ, I’ll focus on my heavenly relationship, knowing those earn eternal rewards, and use the Discover to maximize the earthly rewards which might just be used to help those in need (Romans 12:13).

There’s a slight chance that you’ll watch the video and laugh. Or be jealous that the Estes Park area is beautiful - pay cash and go visit Estes Park, CO.
This podcast is about how credit cards are not a great choice for most people most of the time.

This could totally apply to debit cards for those of you who, like me, are not huge fans of the credit cards.

Please Don’t Taste My Credit Card!

I have noticed that the employees who have to handle my plastic often are careful with the card to avoid looking like they’re doing bad things with it.  However, there’s always a nut somewhere

This is a guest post by Brooke at a DollarFrugal.com, a 20-something PF blogger who paid off debt quickly and is trying to pay off her mortgage by November 2009 while sending her husband back to college. And doing it one dollar at a time. I strongly recommend you subscribe to her RSS feed and learn some things from her great blog.

Open Lines of Communication Open lines of communication that are needed with a budget shared between two people also transfer to other parts of your marriage. Should we raise our child(ren) in a certain way? I don’t know, let’s discuss it. It’s the same premise as where to spend budgeted monies.

Set a Check and Balance Limit We are all adults, but sometimes our “wants” get the best of us. Set a limit ($100 or $20, depending upon how tight the budget is) that is the “discussion limit”. This will use your spouse check how badly you want an item and reaffirm your joint endeavor to kill debt or raise net worth.

Set Financial Goals Together Setting goals together will cement your relationship and show the other just how much you care about them. You could try brainstorming separately (no peeking!) on what financial goals should be, then come together to discuss each idea.

Build an Emergency Fund For your sanity and your spouse’s. An emergency fund is the easiest way to feel secure and not rely on the evil credit cards. Seriously, just do it.

Even Thinking About the “D” Word Is Bad for Finances Divorce is sad for people and our finances. If you go into the commitment with the idea that marriage is forever, you won’t even consider divorce (of course, there are extenuating circumstances, but you get my point). With divorces come two households and the support of these separate households.

Use Joint Assets to Build “The House’s” Assets The stay-at-home mom is a classic example of this. She can attend one online class per semester, coming out after 5 years with 15 classes (equivalent to more than 3 semesters of college), just using naptime. What about retirement funds? My husband made a lot less than I do, but I funded his IRA because I know it will benefit both of us.

Attack Finances as A Team This supports your “one team, one fight” mentality and solidifies your stance against the rest of the world (or at least corporate America!). Have at least a binder somewhere for the non-bill-payer of the family to reference in case anything should ever happen to the bill-payer. Go over the binder together once a year to ensure it is understandable and current. Agree how much to pay each month and make a budget together.

Find Cheap Hobbies Mountain biking is our favorite pastime these days. Spending time out in the fresh air can’t be beat, in my mind. With cheap hobbies, you are spending quality time together, but not spending a ton of money. We constantly play cards. Another place we spend a MULTITUDE of time is the library. Both of us are college students and our son is learning to read, so we kill a bunch of birds with one stone here. Cheap hobbies are cheap (duh, Brooke) and doing them together means you’re spending time doing something you enjoy together. It doesn’t get any better than that!

Buy a Present for the House Instead of Each Other This may be arguable for some relationships, but it’s worked out great for us. Instead of buying each other trinkets, we buy a quality piece of furniture or sports equipment that we pre-discuss and find at the lowest price. It makes me a lot happier than blingy jewelry or flowers that die! Or try funding just $100 of a Roth IRA for each other instead of presents. It will pay off in a large way later.

Shared Sense of Accomplishment The sense of accomplishment that came when we paid off our debt (Oct 2002) after a year of scrimping and clawing was an adrenaline rush. This is a shared experience much stronger than any night out on the town with friends or flashy car. It is part of our shared identity that no one can take away from us!

Personal finances strengthen marriage in a huge way. Money is often cited as the most common reason for divorce, but I would argue lack of money education is the most common reason for divorce. Educate yourselves together and you’ll gain more than just knowledge!