Credit Card “Challenge”

I am a big fan of Michelle Singletary’s commentary in the Business/Money Management section in the Sunday paper. She was raised on a shoestring budget by her grandmother and has a very sensible approach to money management. I, too, have always been very frugal with my money and really only spend what I really perceive as necessary. Sometimes I’ll splurge, but not often! Since I have been fortunate enough to have avoided running up credit card debt, I do use a “cash-back” card for everyday purchases and pay the balance off each month. Here’s my surprise, though….according to Michelle, consumers who use a credit card (even if they pay the balance off each month) spend more than people who pay cash for purchases. Of course, as I was reading that, my mind was screaming that I didn’t fall into that category. But, she had the figures from a study to back it up. To further prove her point, she issued a challenge for people like me. Simply stop using your card for one month and then compare with previous months to see if you’ve spent less. Now, I don’t know exactly how detailed I’ll keep my records, especially since many expenses are lumped together rather than spread out evenly through the year, but I’m going to try this for the month of June. I’ll keep you posted! The link to this particular column can be found here. I think you may have to register with the Washington Post in order to view the article, though.