While you are getting out of debt, you should stay out of further debt. It is very important that you must exercise your self-discipline. If you were in debt before and if you are still in debt, it does show that you have very weak discipline……discipline in managing your money.
Staying out of debt does not mean that you severed yourself from all credits; that includes stop using credit cards totally. You have to cut up your credit cards if you are a compulsive credit card user but you will have to eventually learn to control its use. You see, if you don’t they will control you. You do not want to let that happen and ruin your life.
The usage of your credit card contributes to your credit score whether positively or negatively. Positively, is your usage, your purchasing power; while negatively, is how you pay back the money you spent. If you regularly service the interest and pay on time with at least the minimum pay back amount, then this is a plus point for your credit score.
On the other hand, not being able to settle your card fully every month will not be good for your personal finance management as “interest charged” on the unpaid portion is “money spent”. Above that, the interest charged by credit card companies are very high (18% per annum = 1.5% per month). These charges will eat into your personal wealth.