I Pay All My Bills With a Credit Card: Here’s How I Keep It From Being a Problem
Written by
Laura Beck
Edited by
Rebekah Evans
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For most people, the thought of putting all monthly bills on a credit card is enough to induce a panic attack. The risk of spiraling into crippling debt is simply too high. But for 32-year-old Claudia R., paying everything from rent to utilities with her credit card is just another Tuesday. “It may sound crazy, but I actually prefer it this way,” she said. So how does she manage to keep her finances in order?
Here’s how the Miami-based freelance graphic designer uses her credit cards to pay her bills and how she keeps it from becoming a problem.
Also, explore more on which is better to pay bills with — debit or credit cards.
Credit Card Rewards Were the Gateway
Like many credit card devotees, Claudia’s journey began with a simple lust for rewards points. “I traveled a lot for work when I was younger, so racking up miles and hotel points was really appealing,” she said “Once I got that first taste of a free flight, I was hooked.” Before long, she was putting as many expenses as possible on her cards to maximize her earnings potential.
“The light bulb really went off when I realized I could pay my rent with a credit card,” Claudia said. “Those rewards piled up so much faster after that.” From there, it was just a matter of getting utility companies and other billers on board with accepting her plastic.
Becoming a Money Management Machine
Of course, the risk of spending beyond one’s means is very real when relying so heavily on credit cards. But for Claudia, being hyper-organized is the key to keeping her finances from going off the rails. “I have a dedicated money management app that I live and breathe by,” she said. “Literally every expense gets recorded, categorized and scrutinized.”
This level of organization allows Claudia to always know exactly how much she owes on each card and what her total monthly obligations are. “As soon as I get paid by a client, I divide that money up to cover the card balances,” she said. “I’m never at risk of late fees or interest charges because those payments are the top priority.”
To avoid any budgeting blind spots, Claudia also makes heavy use of account alerts and calendar reminders. “My phone blows up with bill due notifications constantly,” she said. “It’s annoying but absolutely essential for my system.”
Making It All Worthwhile
While the organizational strain is significant, Claudia maintains that exhaustive credit card usage is 100% worth it for her particular lifestyle and priorities. “The rewards I’ve racked up over the years have literally paid for dozens of vacations and flights,” she said. “My dream trip to Italy was almost entirely covered!”
But perhaps even more important than the travel perks is the sense of financial control Claudia feels from her system. “Dealing with so many different bills used to be a nightmare before I consolidated everything to my cards,” she said. “Now I still have to keep meticulous track of things, but at least it’s all streamlined under the same accounts.”
Tips for Aspiring Credit Card Gurus
While Claudia’s approach may not be for the faint of heart, she does have some pearls of wisdom for those looking to adopt a similar credit-centric lifestyle:
- Find the right tools. Identify money management apps, calendar systems, etc. that allow you to carefully track spending and due dates across all of your accounts.
- Automate where possible. Take full advantage of any autopay, account alerts and other features offered by your banks and billers to avoid missed payments.
- Stick to a routine. Set aside dedicated time each week or month to record transactions, pay outstanding balances and generally keep your finances organized.
- Have a backup plan. Relying so heavily on credit means you need a “Plan B” revenue source for any lean periods when money is tight.
- Stay on top of your credit score. Missing even a single payment can severely ding your score, limiting your future credit opportunities.
For the truly diligent and organized, Claudia’s credit card lifestyle can unlock a world of financial power and rewards. “It’s definitely not for everyone,” she said, “but I really can’t imagine going back to the hassle and lack of control I had before.”
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