Why Credit Cards are a Bad Idea

Credit cards are just so convenient, aren't they? There's no need to carry any money with you ever again: you can just take one with you to the shop and pay the exact amount just by handing it over. If you haven't been paid yet, then you don't need to worry, because the money will still be there.

When you shop on the Internet or over the phone, it's the only good way to do it ? what else are you going to do, post a cheque? Like anything convenient, though, credit cards have a flip side ? in fact, they have lots.

Can You Keep Track?

When you walk into that shop and hand over the card, the money is taken from the card, and the card goes back into your wallet. You still have all the things you started with ? there's no less money in your purse or wallet to remind you of what you've spent.

Everyone has a tendency to underestimate what they spend, and smaller amounts can add up quickly on a credit card without you even noticing. It's like taking the way phone bills work and applying it to everything you buy ? and that can't be a good idea.

Money For Nothing.

Using credit cards is a great way of losing a percentage of your income to a credit card company in exchange for nothing. The moment you run a balance, you're paying them interest. Not only that, but you're paying your credit card bill as soon as you get your wages, so you don't have the chance to earn any interest on them from your bank. When you think about it, you're losing out twice over ? and for what?

Designed to Keep You in Debt.

Your credit cards are trying to keep you using them and paying interest. You will find it very difficult to pay off all your credit cards once you have them. The company will do everything they can to stop you paying before you've paid them lots of interest. The more debt you show you can pay back, the more they'll try to offer you, until they get you to the point where you can't pay.

The Lie in the Name.

Credit cards are called credit cards to avoid saying what they really are: debt! You will do much better in all things connected to credit cards if you always remember this simple mantra: credit cards are debt cards. Use the word debt as often as you can whenever you talk about credit cards.

But Sometimes You Can't Avoid Them.

When you need money in an emergency and you just don't have any, there's no doubting that credit cards can be useful. They are also a very useful way of proving to credit rating agencies that you can handle debt, and this will be taken into consideration when you apply for car loans or a mortgage.

Just remember that whenever you handle credit cards, you're playing with fire. Do everything you can to keep your use of them to a minimum, and you'll have a much better financial life.

Ken Austin is the webmaster at Debt Consolidation Solutions and Credit Relief Solutions

---

Teaching Students To Keep Out Of Credit Card Debt - The Parents Role

Parents have the full responsibility for their children and their... Read More

Like It Or Not, You Have A Score To Settle! Part 1

Just when most people finish with school and can stop... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO... Read More

Credit Education

Having credit education is like knowing how to read. It... Read More

Credit Scores and Loan Applications

Keep Your Credit History Clean - Remove A Negative Credit... Read More

Which Credit Card?

Bewildered by the sheer variety of debit cards and credit... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to... Read More

14 Common Credit Mistakes

Establishing credit and wisely managing your credit becomes easier when... Read More

Practical Suggestions for Protecting Yourself From Identity Theft

It's no surprise that thousands of Americans are victimized by... Read More

Low Interest Credit Cards Have Many Advantages

When credit cards are used wisely they can be very... Read More

Guide to Credit Terms

Listed below is a useful guide to credit card terms.... Read More

10 Signs You May Need Credit Counseling

Debt management programs can be of real help for people... Read More

Warning: Free Credit Report Imposter Websites Springing Up on the Web

A recent amendment to the federal Fair Credit Reporting Act... Read More

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious... Read More

0% Credit Cards

These days, credit cards in the UK are competing with... Read More

Choosing a Credit Counseling Company

If you have considered credit counseling as an option to... Read More

A Debt Mentality

While working through my own debt situation, and helping others... Read More

Update Your Computer System With Bad Credit Computer Financing

The moment I placed myself in front of the computer... Read More

Dont Fall For A Scheme When Trying To Rebuild Your Credit History

For people with a spotty credit history or bad credit,... Read More

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when... Read More

3 Free Credit Reports For You

If you were to tell someone that they can have... Read More

Credit Card Balance Transfers Can Help You Stop Putting Money Down The Drain

As you probably know, interest rates are at all time... Read More

Credit Counseling: Is it Really Necessary?

Not everyone has a positive experience with credit counseling. Potential... Read More

Which Citi Mastercard Is Right For You?

You've decided to apply for a Citi MasterCard, but with... Read More

Fight Credit Card Fraud with Common Sense

By now, you have undoubtedly heard of credit card fraud,... Read More

Credit Cards for Home Business

It is wise for you to have a company credit... Read More

Useful Tips on Borrowing Money

Here are some useful tips on borrowing money. Borrowing money... Read More

Beat Credit Card Companies at Their Own Game!

Have you ever wondered how much money a credit card... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and... Read More

10 Tips To Prevent Credit Card Fraud

Imagine opening your credit card statement one morning and discovering... Read More

Get Your Credit Score To Soar In The Twinkling of An Eye

Ever wonder how a creditor decides whether to grant you... Read More

Learn About Prepaid Credit Card

Prepaid credit cards also called stored value card can be... Read More

How To Get a Low Interest Credit Card

Consumers often have the first credit card that they ever... Read More