Credit cards are tricky. They are so convenient that it makes it far too easy to slip into overspending, and it takes far too long to dig yourself out of. Granted, I have on some occasions gone on ‘credit-free’ months (remember — I’ve tried all savings and curb-spending strategies in my advisor days), and I always found that there was some critical thing to purchase using a credit card that I had to use it once the allocated time was up. Sure, some people can get around it, but airline flights, though expensive, sometimes are inevitable. (Unless, of course, you want to explain over Thanksgiving or Easter than you are not spending it with the family because you don’t want to buy the flight — which, might be harder than not using cards). There are also classes or events that friends organize, that sometimes can only be purchased on-line. The nature of start-ups is e-purchasing, and sometimes the product or service is so unique, that online is the only way to pay for it.

The best recommendation I can give you is to go for a ‘debit credit card’, which are becoming more and more readily available in Canada today. That way, you can have to benefit of a credit card for on-line spending, but you can’t spend money you don’t have.

As for a regular car, you don’t even need it. The points are not worth it. If you do however, feel the need to have one, get one without an annual fee. The AMEX Blue Sky Credit Card has no annual fee, and even with a measly $3000 limit (I’m not a fan of credit cards), I still get about one free flight a year, which is nice.

Stay tuned for a breakdown of best and worst credit cards!

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