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
Bad credit can be a burden for otherwise good credit.... Read More
Credit score is one of the most basic, determining factor... Read More
The Fair and Accurate Credit Transactions Act, signed into law... Read More
Establishing credit and wisely managing your credit becomes easier when... Read More
Credit counseling is an option you might want to consider... Read More
Introduction In this article, a presentation is made of the... Read More
If you intend to apply for a loan, you need... Read More
Credit has become a much-used word, thanks to the various... Read More
Step I - Selecting A Collection AgencySelecting a credit collection... Read More
Understanding credit report scores is important when you see your... Read More
Credit scores are the most important aspect that determines your... Read More
In the new millennium plastic money or credit cards has... Read More
We spend money every single day on many different types... Read More
Chances are you've gotten your share of offers like this... Read More
Making Your Credit Rating Work For YouOne of the basics... Read More
In my previous article "Establishing Credit ? What You Need... Read More
Today there are so many different credit cards available, student... Read More
We have all heard the rumors?from neighbors, relatives or friends.... Read More
Identity theft is the fastest growing crime in America. According... Read More
If you were to tell someone that they can have... Read More
You probably don't need me to tell you credit cards... Read More
There are a lot of questions about using credit cards.... Read More
If you're a college student, you probably already have a... Read More
Check 21 is the common name for the Check Clearing... Read More
Your credit history is important; in fact, in this day... Read More
If you want to purchase a new home or refinance... Read More
These five debt negotiation facts along with a few debt... Read More
Why do some people get offers for pre-approved credit cards... Read More
A recent amendment to the federal Fair Credit Reporting Act... Read More
FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More
There are a couple of reasons for this. You can... Read More
It is estimated that billions of dollars in delinquent commercial... Read More
Just when most people finish with school and can stop... Read More
Sue is a homeowner and pays her mortgage and other... Read More
Sure, there are a lot of problems with credit cards,... Read More
In the face of financial hardship, many seeking a responsible... Read More
Using a credit card wisely is an important step in... Read More
Ever wonder how a creditor decides whether to grant you... Read More
Here are some useful tips on borrowing money. Borrowing money... Read More
How Lenders Operate ? And How They'll Make a Tidy... Read More
Are Credit Card companies starting to feel the pinch? We... Read More
Rewards cards have become the latest rage in the credit... Read More
Credit card debt is a growing sickness in the United... Read More
Credit card balance transfer involves using a credit... Read More
By now, you have undoubtedly heard of credit card fraud,... Read More
In "Become the Squeaky Wheel" a book recently published, Michelle... Read More
You've decided to apply for a Citi MasterCard, but with... Read More
What is trade credit?One of the major differences between consumer... Read More
In Less Than 30 Days. "What can you do to... Read More
Article excerpted from the new book, "How to Do Space... Read More
When you buy real estate, lenders run all of the... Read More
A credit report is basically a file about you kept... Read More
If you have never heard of a FICO score before,... Read More
"Like the tan? I got tons of sun on that... Read More
We have all heard the rumors?from neighbors, relatives or friends.... Read More
How to Repair a Bad Credit Rating?The Right Way!If you... Read More
How many of you bank, shop, or transact other business... Read More
Making Your Credit Rating Work For YouOne of the basics... Read More
Do you have a poor credit rating? If so, you... Read More
FREE credit checks or free credit reports. What are they... Read More
A good credit reward card can contribute to your retirement... Read More
Are you thinking of buying a house? Do you want... Read More
The credit industry if rife with pitfalls. If you have... Read More
Like me, you've probably been offered a fair old number... Read More
How can I prevent Identity theft from happening to me?... Read More
Before you take out a home loan or make any... Read More
Credit |