Why Credit Cards?

I feel that far too many commentators go overboard advocating a "no debt" approach to credit cards.

Yes, credit cards are seductive. And, getting into credit card debt is so very easy. What's more, credit card issuers can be tricky, maximizing profits by tripping people up with hidden or excess fees.

But, the logical conclusion is not to avoid all credit cards and/or debt. There are good reasons for credit cards and for debt. Here are a couple of the headlines:

1. Debt is not the devil. Excessive debt is the devil. America was built on the use of responsible debt. Entrepreneurs, developers, industrialists -- debt was almost always part of the equation. Debt means risk. Reward and risk are two sides of the same coin.

It is easy to attack credit cards and credit card issuers. Many issuers have been overly aggressive in marketing credit cards -- putting cards in the wrong hands. And some issuers have been unfair and deceitful in billing practices. But, ultimately, the use of a credit card is an individual decision. If you are one who will not be able to control your usage, then by all means cut up every card you have and never get another. But, if you can deal with the prospect of debt, and use it to your advantage, then credit cards can be a great convenience.

Jim Randel is the founder of Rand Media Co. and the primary author of The Skinny On Book series. His latest publication titled Street Smarts teaches 125 critical life skills that are not traditionally taught at universities.