The "increased spending outweighs the reward benefit" is a point that many of us overlook; rewards and bonus points are tricky and clever. It goes along the lines of points cards or stamp cards for your local coffee shop that say "buy 10 cups of coffee and get one free;" would you buy more coffee to get your free cup, instead of saving money by not buying coffee at all? Does it make you go more frequently?

Although I would advise against any credit cards with annual fees, there are plenty of cards without annual fees but with their fair share of rewards and incentives. If you're going to use a credit card, you might as well get reward for it, but you shouldn't feel like you need to spend to get a reward.

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Many VISA and MasterCard credit cards are making a killing because many people continue to pay the minimum required payment each month and keep large balances outstanding month after month.  The amount of interest they end up paying each month adds up to a heck of a lot money over a period of several years.  Even worse is when those people have large outstanding balances on a high rate card.  You could say that the interest payable then becomes exorbitant.  In this case, if they really have no resources to pay off the balance each month.  Then, at the very least they should be using a low interest rate card.  Now, more than ever before, people need to be proactive in looking for these lowest rate credit cards.  It is quite amazing how many people still have high interest rate credit cards.   If a person has a high rate credit card or just simply accepts rate increases, then they will be paying excessive interest each day on their outstanding credit card balances when they could be paying a whole lot less.  There are some great low interest, no annual fee options out there.  My advice is for people to do some research about the different credit card options  and then transfer the balance to the right one. There are some great sites for free info on the options like www.lowinterestcreditcard.biz and of course here on MSN.

I think that most people should reduce the number of credit cards they use.  We all should talk to local merchants adn ask them if they will accept our checks(we know cash is OK).  This will put 2-3% into the merchants pocket and give us a better idea of what we are spending.  If we all did this, we sould send the credit card companies a strong message.

So if I am on a business trip, I should use cash? Why? It is someone elses money that will pay off my balance. This is my primary CC expense.

The myths ignore the self control factor. Whether you pay with greenbacks or credit cards, a person with self control will benefit from the credit card perks. There are certain purchases that are more suitable with plastic like plane tickets, car rentals, large service agreements, internet purchases, etc. Then there are those things that should be bought with greenbacks like groceries, clothing, and toys:)

It's silly to say I should not use credit cards because I spend more than I would if I only used cash, if I am spending within my means and pay my bills.  What's the point of making money if not to spend some of it?   Maybe I should open a bank account that only allows me to put money in and not withdraw it?  

I don't know why this idiot gets any money for his ridicuous ideas,  I think he better start saving before someone gets wise to his incompetence and gives him the pink slip.

It is no body's business how an individual use's his or her credit card's.

Once again the "experts" use a blanket analysis to analyze financial activity.  The use of credit cards is like a 30 day interest free loan if used properly and the balance is paid in full monthly.  As earlier posts state, factor in self control and you have a powerful financial plan.  5% back on gas purchases, 3% on entertainment and 1% on all other purchases is a nice way to earn rewards.  Oh by the way, I have a budget, I stick to it and I use credit cards for any and all purchases possible.  Lose a credit card and you can replace it, lose your cash and its gone forever!  The security of plastic is an added benefit.

Don't repay any of your debt.  Declare Bankruptcy and thus you can exact your pound of flesh from the money changers that have been robbing you blind for years with all of their hidden and self-created fees.  You say that this is not the American way.  True!

However, it is the American way to thumb our noses at foreign powers attempting to control our lives.  You should regard these debt brokers as foreign invaders and stick it to them.  Or you can bend over and take it.  The choice is yours.  Do you want it on your feet or knees?

In the end, the bank always wins.  However, at least you may possess a small measure of self respect that they did not take your soul.   When you are out of debt, stay that way.  Live and win within your means.

If we all did this, you would see the bullying banks back off their now brutal tactics of giving it to the little guy.  You might even see them before you on their knees.  They are after all nothing without you the consumer.

Do all of you realize this?  The bank does not make anything or provide any viable service other than separating you from your money.  If you simply saved one year's salary, then you could free yourself from the banks forever.  You would see real begging from your bankers then.  Without you, they are simply a beggar in a nice suit.

This advice is far too broad. Individuals need to consider their circumstances and habits before deciding what role, if any, credit cards should have in their finances.

My credit card website has something interesting on it - a categorical breakdown of spending. And a reminder of where every single dollar went for at least the past 90 days. After I buy something in cash, it's very easy for me to forget about it. With a credit card that gets paid every month, I get a great financial sizing-up from a fee-free rewards card...that even sends me a check every now and then - THEY pay ME interest!

It was when I switched to using credit for most purchases that I became aware of how often I ate out. Yeah, I had it in the budget and usually didn't overspend, but it wasn't' until I COUNTED how many times that month I had gone out. Because I always get an "unfudgable" account of my expenditures (including dates), I then decided to eat out less. Not because I can't pay my bills, but because after seeing how often I was doing it, I felt like the money could be used in other areas (adding on to already healthy savings, saving for new clothes, rec center pass to decrease the effects of eating out, etc).  

The article fails to acknowledge personal responsibility and self-control.  I use a charge card (Amex) for virtually everything and pay the balance in full every month.  The annual fee is  an expense to be sure, but when you're overseas the features of the card make the fee very worthwhile.

Cash or not, I will still spend the same.  My cardinal rule is to spend under 50% of my NET earnings and save/invest the rest.