Our financial expert Dave Ramsey says stay away from credit card as much as you can because sooner or later you'll fall prey to it.

My brother-in-law is giving me a hard time about my credit card. It has no annual fee, and I get money back from the credit card company for all of my charges.

I only use it to pay off my bills every month. But he tells me that there is no justification for having a credit card. In this scenario, I'm getting paid back by the credit card company for using their credit card to pay my bills. So, where am I going wrong?

-- Chris

Dave says: There is absolutely no justification for using a credit card. Why don't you just pay your bills with a debit card, and draw the money directly out of your bank account? That's better than borrowing it and paying interest on the blasted thing.

No point in taking chances

Where you're going wrong is a good question, though. I've been doing financial counselling for years and worked with tens of thousands of people. During that time, I've repeatedly met folks who were doing exactly what you are and it has come back to bite them.

When you stumble, they gain

When you're talking about credit cards you're talking about a multi-billion dollar industry designed to do just one thing -- separate you from your money. And they're very good at it! They're more than willing to pay you a percentage point back because they know you're going to stumble at some point -- and that's when they pounce!

Model yourself after wealthy people

I've talked with hundreds of millionaires, and I've never met one who said credit cards were a blessing or that they got rich thanks to credit card rebates. They've all just gone about the business of earning money, living on less than they make and saving. They don't play with snakes because they know sooner or later they'll get bitten.

This is a dangerous game you're involved in, Chris. I challenge you to stop playing it, and model yourself after wealthy people!

A little about Dave:
 
At 26, he had a net worth of a little over a million dollars. Life couldn't be more perfect. And then he lost it all, thanks to debt. That's when Dave went on a quest to find out how money really works, how he could get control of it, and how he could have confidence in handling it. On our pages, Dave will guide readers on all things related to money!

For more financial advice plus a special offer for our readers, visit www.davesays.org. This column is part of a series of columns by Dave, exclusively for you, dear readers!

Dave's earlier columns:

When in debt use common sense
Who holds the key to your house?
To get out of debt, get mad first!
Save money, be happy