SmartyPig®

With banks bracing for the next meltdown in the form of people not being able to pay their credit card debt, and Congress pushing hard for a Credit Card Bill of Rights, I thought it might be good time to touch on the topic of plastic. In a recent survey, 35 percent of Ladies Home Journal Readers indicated their top money worry was paying off credit card debt. For years, it seems, people have been living large, buying now and figuring out how to pay for things later. Later has finally arrived.   

I read an article recently where the author suggests that consumers should use credit cards for big-ticket purchases such as a refrigerator or home repairs. And while this author does make great points about the benefits and responsible use of credit cards, author and smart-money guy Dave Ramsey says credit cards are never a good idea. Don't believe Dave? Ask Thomas Jefferson who said, "Never spend your money before you have it."

At SmartyPig, we take the words of both men seriously. If you don't have the money to spend on an item, the solution is simple: save up for it instead. We know that in these difficult economic times emergencies do happen. But if you want to charge a new plasma screen TV or a family trip, wait it out. Start a SmartyPig goal instead. Then, when you've met your goal, the TV or the trip is all yours without a single credit card bill. Simply put, using cards in this economy, is an accident waiting to happen. Too much can go wrong. 

That's why we are working non-stop to make it easier for you to save money and stay away from your plastic. We've recently added new features to help the goal saving process, and we hope these improvements will further motivate you to keep saving and meet your goals. As Mr. Ramsey states, "There is NO positive side to credit card use." We could not agree more.