Personal Finance

I was disciplined with credit cards until a trip to Japan — peer pressure led me to overspend. Should I cut up my cards?

Joey Frenette

Published: December 20, 2024 12:31 pm

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It’s too easy for less-disciplined individuals armed with a credit card and a high credit limit to splurge and worry about things later. Undoubtedly, credit card interest rates are hefty enough to derail just about any long-term financial plan. But does that mean it’s better to pay for things with a debit card over a credit card?

In a previous piece, I highlighted the benefits of paying with credit over debit, provided one ensures they have enough funds to cover their monthly bills in full. Notably, credit cards come with ample benefits (cash back, travel points, consumer protection, etc.) and the opportunity to build a better credit score over time.

If you treat your credit card like a debit card (by paying off outstanding debts as they arise), there’s no reason to go for the debit card unless, of course, you don’t trust yourself enough to spend within your means. Letting growing amounts of credit card debt sit and build interest is one of the worst financial mistakes one can make. Additionally, not checking monthly statements is like sweeping dirt under a rug.

In the case of this Reddit poster, they had a trip to Japan and ran up their credit card debt to a level that exceeded their savings. Had they left their credit cards at home, I’m sure they wouldn’t have overspent. While cutting up their credit cards may be advisable for those who lack self-control or are unwilling to learn from such financial mistakes, credit cards should not be blamed. Rather, it’s the individual who abuses the credit card who is solely to blame.

Key Points About This Article

• Irresponsible use of credit cards is a huge problem that needs to be addressed.
• This Reddit poster needs to learn how to prioritize their financial future over spending more than they have on FOMO experiences.
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FOMO can cause many to accumulate towering sums of consumer debt

In the Reddit poster’s case, I think they have more of a spending problem than anything else. Indeed, it’s all too common for Americans to live paycheck to paycheck, spending every dollar (and then some) that comes their way. While credit cards may fuel rampant spending behavior, I think the root cause of issues is not taking responsibility for one’s own actions.

Notably, the poster doesn’t seem to know how to say “no” to social outings that may entail spending more than one has. Indeed, there are ways to socialize that don’t require going deep into credit card debt. The main issue for this poster, and likely many folks like them, is the feeling of FOMO (or the fear of missing out) that could arise if one foregoes experiences that entail significant spending.

Getting a budget and learning how to say ‘No’ to friends

Undoubtedly, FOMO can be felt when one declines a friend’s invitation to go shopping downtown. It can also be felt much more strongly when one is invited to travel with a group to a popular vacation destination. Worrying about the debts accumulated later is often a justification for giving into FOMO and raising substantial sums of consumer debt.

Whether you’re thinking about chasing a hot stock or committing to an activity that entails overspending and derailing your financial plan, FOMO can be tough to beat. That’s why I’d advise learning how to say no to friends or, better yet, finding new friends that don’t pressure one to spend considerable sums to keep up.

The art of delaying gratification is a skill, one that can be built over time. If the Reddit poster treated their Japan spending spree as a learning opportunity and a catalyst to change one’s behavior for good, there’s no reason to feel any hint of guilt or shame. For now, getting a budget, I believe, should be a top priority.

The bottom line

You can blame the credit cards all you want for irresponsible financial decisions. However, at the end of the day, it’s more about taking accountability for one’s actions and committing to a plan to change for the better.

In short, it’s about learning from mistakes and growing from them that can help people shift gears from being spenders to savers. Personally, I think this person should visit a financial advisor who can help them get on a budget and improve upon other aspects of their financial hygiene.