The credit card - a blessing or a curse?
Many, if not all of us have probably held both opinions from time to time. On the one hand, the credit card has made itself so useful in our busy modern lives; so much so that many of us would regard our cards as indispensable. By contrast, however, their careless or indisciplined use can lead to virtual financial meltdown! The blessingCash is easy to lose and even potentially dangerous to carry, and of course we're often unsure just how much we might need on any given day. By contrast, the credit card allows us to charge our daily expenditure with ease, almost without a second thought. Which is all very well so long as we live within our means and use our plastic wisely, not wastefully. And most importantly, make sure to pay off the entire balance each time the statement arrives. I know, that's what we'd all do in the ideal world, and it's only when we can't or won't do so that our little plastic blessing can turn into a little plastic curse! Of course there are all kinds of unforseen situations where the credit card can be a lifesaver. Imagine, you've budgeted sensibly for your car's annual service and then you find that it needs new tyres all round! What do you do; get the bus? Hardly! Chances are you can't do your job without the car let alone your social life. So you reach for your little plastic friend and "Hey presto!", the problem goes away like a dream. It's magic, and it's painless! The curseBut do this too often and when the statement arrives at the end of the month it's a different feeling altogether. In fact, it can turn into a nightmare! The key thing to remember here is that credit cards generally charge high interest rates and are therefore a poor choice as a means of financing ongoing debt. And because the credit card system is designed so that you can repay as little as 3 of the sum outstanding each month the unwary user will quickly find they're paying interest on the interest, and at a high-rate too! Welcome to the classic "credit-card-trap"! And don't think this trap exists by accident: it was invented by the lending banks and they love you to fall into it! Believe me, your trap is their free lunch and if it gets out-of-hand it can cause you to lose your home and everything you care about! The answerSo the golden rule must be to pay off credit card debt as soon as possible even if that means going without that latest irresistible "boy's toy" or those "must-have" shoes. You must remember that if you buy them with your credit card the bill will still be there long after the novelty has worn off. So it's vital to be disciplined, especially when money is tight. Those bright, shiny window displays with their credit card logos aren't there just to cheer up your day! They're designed to make you reach for your little plastic friend and buy something you don't really need and can't really afford! But if you use your iron will and resist these little temptations you'll soon find that there's money left at the end of the month, instead of the other way round. And when that happens why not buy yourself a little treat for being so smart with your card. But do be sure to pay for it in cash, won't you?
About the Author
The author is a writer and internet publisher. His websites offering help and information on credit cards include http://www.credithelpforum.com/ and http://low-apr-card.com/
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