7 big money myths

Using cash will keep me out of debt

There is a nugget of truth here: You can’t go into credit card debt if you’re not charging purchases on plastic. But just because you’re not getting a monthly bill from Visa or MasterCard doesn’t mean you don’t have debt.

"It’s almost impossible to avoid debt," notes Beverly Harzog, consumer credit expert and author of the the book Confessions of a Credit Junkie. "You can have a mortgage or car loan or student loans, all different forms of debt."

While it’s a good idea to avoid credit card debt, avoiding credit cards altogether isn’t a smart financial move. In addition to providing a buffer in case of emergencies, having a credit card can help build your credit score.

"Using your credit card and paying the balance off at the end of the month shows (the credit bureaus) that you can handle different kinds of debt," Harzog says.