Every day you walk to the mailbox, gather your mail, and without fail there is an envelope with a plastic card in it touting free vacations, $500 off of your first use, and even cash back! Yes, we’re talking about credit cards. Most of these mailers are flashy and seem too good to be true. This is why we’ve come here today to ask the questions like, what credit card offers should we avoid, when should we utilize our cards, how do we truly take advantage of the various awards and points schemes available in this wide, plastic world?

When we are first meeting with potential clients we take a brief look at their finances; part of that is their debt (student debt, personal loans, credit card debt, etc). Some of this is completely normal, but if they do have outstanding credit card debt, that says they’re currently living beyond their means. Let’s talk about how to handle that debt, and how to avoid it altogether over the course of our next two podcasts.

What role do credit cards pay in our financial wellness plan? Actually, a huge part. In 2020 (and through 2022) in the US, middle-aged Americans had an average 4 credit cards they regularly use.

How do you pick the best credit card for you? You first have to think about the purpose of the credit card. Some factors are as follows:

Building Credit

This allows you to purchase a house with a better mortgage interest rate. Don’t know where to start building credit? Try a secured credit card. It acts like a debit card you load money onto in the backend, and the tellers on the front end just see a regular credit card.

Earn Rewards/Points

These often have higher annual membership fees, but may offer rewards at a higher % than others might. Find the right one for your needs/desires and do some rough projections to see if the rewards outweigh the fees you’d accumulate. Always read the fine print!

Keep an eye out for our next podcast as we continue this dive into credit cards!

Listen on Apple Podcast, Google Podcast or Spotify

To hear the original podcast, check out the Brown University page here.

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Remember that you can send us any questions or potential topics at: Info@MDFinancialAdvisors.com

Katherine Vessenes, JD, CFP®, is the founder and CEO of MD Financial Advisors who serve 500 doctors from Hawaii to Cape Cod. An award-winning Financial Advisor, Attorney, Certified Financial Planner®, author and speaker, she is devoted to bringing ethical advice to physicians and dentists. She can be reached at Katherine@mdfinancialadvisors.com.