Advantages of Credit Cards:

Convenience–Credit cards can save you time and trouble–no searching for an ATM or keeping cash on-hand.

Record keeping–Credit card statements can help you track your expenses. Some cards even provide year-end summaries that really help out at tax time.

Low-cost loans–You can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away.

Instant cash–Cash advances are quick and convenient, putting cash in your hand when you need it.

Perks–From frequent flier miles to discounts on automobiles, there is a program out there for everyone. Many credit card companies offer incentive programs based on the amount of purchases you make.

Disadvantages of credit cards:

Overuse–Revolving credit makes it easy to spend beyond your means.

Paperwork–You’ll need to save your receipts and check them against your statement each month. This is a good way to ensure that you haven’t been overcharged.

High-cost fees–Your purchase will suddenly become much more expensive if you carry a balance or miss a payment.

Unexpected fees–Typically, you’ll pay between 2 and 4 percent just to get the cash advance; also cash advances usually carry high interest rates.

No free lunch–The high interest rates and annual fees associated with credit cards often outweigh the benefits received. Savings offered by credit cards can often be obtained elsewhere.

Deepening your debt–Consumers are using credit more than ever before. If you charge freely, you may quickly find yourself in over your head–as your balance increases, so do your monthly minimum payments.