Credit Card Magic

Having a credit card can be a valuable asset in times of emergency. It also allows you to rent cars and hotel rooms. If used properly you can be rewarded in other ways.
First, don't use credit cards to borrow money, which is essentially what you do when you buy things you cannot pay for on that billing cycle (borrow money from a bank when absolutely necessary and pay far less interest). Use your card only for purchases you can pay for in full when the bill comes due. Never allow yourself to pay interest or late fees on a credit card.
When we were first married thirty years ago we decided we would reap the rewards of having a credit card without paying the penalties. When we use our credit card we record the transaction as though we had written a check. Consequently our bank balance shows our true balance. Instead of recording a check number place a CC in the space. Then when the bill comes, compare it with your checkbook registry to ensure you have recorded everything, checking off each transaction as cleared, and write a check for the entire amount. You won't need to subtract that check from your balance because you have done so throughout the month.
Following this plan you can build good credit and enjoy the added benefits offered from banks, i.e. cash back or airline miles (our favorite).
We do have a $50 fee each year for our credit card but we earn an airline ticket about every five months. Two airline tickets for $50 is quite a bargain.

Never late!

If you don't have your bills set up for automatic payment (which I highly recommend), then sit down and write a check the very day you get the bill in the mail. Mail it out that very day, or the next. You will never forget to pay a bill and will never pay unnecessary late fees.

Recipe for debt

When your yearnings exceed your earnings.