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While The Financial Woman does not focus on debt reduction I am writing an article about credit card debt because I have heard several friends mention lately that they did the same thing that I did: They got sucked into the zero interest credit card game! As the pre-approved credit card applications came rolling in over the past few years I thought “Who would be crazy enough NOT to take advantage of free money?” Even though this went against my financial rules and wisdom I thought I would just pay off the cards as soon as interest was charged. Now that time is here and I recall why in my 51 years of life I have avoided credit card debt at all costs. For every good thought that zero interest and free money provided last year 10 times that amount of bad thoughts are entering my mind about credit cards this year! Sure I believe that credit card use has some benefits when paid off monthly. It can provide free airline trips due to the mileage earned when used. In fact my family flew to Italy 2 years ago using such miles. I love those store credits I receive from Costco the Gap and TJ Maxx. These things can actually save a lot of money. What is bad is credit card debt that is not paid off immediately whenever interest is being charged. Moreover I have recalled that it is just poor cash flow management (not to mention bad karma and are those shoes even still in style?) to pay for something purchased a year ago! I have gladly returned to my old money rule and that feels much better. Debt is for appreciating or income producing assets only. Yes our homes will appreciate again in time while shoes definitely will not! OK some argument can be made for John Hardy jewelry diamonds and platinum… just kidding