Q: I’m not into credit
card rewards. Can I stick
to just a debit card
and simplify my life?You don’t want debt, but you also
don’t want to have zero credit his-
tory. Being a responsible credit
card user proves you’re a reliable
fiscal citizen when you go to
finance a car loan or take out a
mortgage. So get a card and use it
for small, recurring charges—say,
your monthly Hulu subscription.Q: I’m trying to chip away
at my credit card debt, but
it feels like I’m treading
water. Any ideas?Shop for a new card that allows
for a balance transfer and includes
a 0 percent interest introductory
period (which usually lasts 18
months or less), Game says. During
that period, every cent you pay
goes toward the principal balance.
For instance, if you owe $5,000
and pay $300 a month, you could
pay it off in 17 months. In compar-
ison, depending on the interest
rate and minimum monthly pay-
ment, keeping a balance could
mean making 20 monthly pay-
ments to pay off the debt and
foisting over $900 in interest.
Think of that 0 percent interest
period as a deadline to obliterate
your balance (yes, that might
mean tightening the budgetary
belt for a bit!). After the introduc-
tory period is over, the new
interest rate may be higher than
you want, says Elaine King, a
certified financial planner and
the CEO of the Family and Money
Matters Institute.When you travel,opt for creditover debit. If yourcard is lost orstolen and you flagthe suspiciouspurchases, youdon’t lose money.Link the bill to your account so
it’s automatically paid each month,
without your having to lift a finger.
When you travel, opt for credit
over debit, Palmer says. “If your
card is lost or stolen and you flag
the suspicious purchases, you
don’t lose money.” Also, some
hotels and car rental agencies
may require a deposit from your
checking account if you use
debit—yet another reason to pack
the credit card.90 REAL SIMPLE APRIL 20200420MON.V1.indd 90 FINAL 2/24/20 1:47 PM