This kind of statement made me realize since 2019 that what most people say about credit cards are not real. they say you will have a huge debt if ever you get a credit card, or using credit card will only make your life worse.
At first I think the same way as this was the information planted in my mind, until I start my own research and see a lot of positive statements from credit card users who knows how to maximize the benefits of their card just like yours.
Since then, I am using my credit card and make use of the benefits they have. I use it everywhere, in my daily life and paying no additional fees since then. For annual fees, I can at least manage to waive it and continue to have a good credit score since then.
when I use a credit card i have the money to for it. I use the card to get say a 2% rebate.
So if I buy a refrigerator at best buy I get 5% rebate and an extra year of warranty at no cost if I use the best buy card.
so $1000 refrigerator means a return of $50 . jut pay in about 40 days.
I let those rebates stack for a year or so then grab a gpu if gpu mining is hot.
I do this shit endlessly. Now that mining sucks I am selling off paid for older gear on ebay.
Its profit. I stack btc and some alts and some cash.
The key is do not get over extended on your credit.
But unfortunately ordinary people over extend themselves to buy liabilities and items
which lose value, particularly cars in my country.
The difference with business people end successful entrepreneurs is they borrow
money and use other peoples money to make profits. Whatever they buy with the
borrowed money it is expected that it will perform solely to make more money.
Common people use credit to buy stuff they want purely because it appeals to them
and it looks good. Often before that credit is paid off they get further in debt because
the shine has worn off that item and they replace it with the newer model.
That's what we call a bad debt. Usually, normal people do not know how to manage their spending using credit card. They often forget to spend within the amount they are capable to pay or the same as what you said of they purchase stuff that they want, usually it is to show off to other people to look like some rich man. A lot of people have that kind of situation even in our country, they don't know how to manage their debt and end up having a financial problem.