Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles

Beware the Hidden Traps of the Seductive Credit Card!

Because of the convenience and general acceptance of credit cards we often tend to forget how dangerous they really are. 'Dangerous?' you might ask. Yes they are. They have almost become a drug of choice. It starts with one purchase and before we know it we are paying for everything with our credit cards, and taking the risk of overspending.

There used to be a time where you actually had to have money in order to buy something. When credit cards were first introduced it was kind of a handy way to pay for something in times where your salary was late or when you didn’t have the patience to save up for a big purchase.

Nowadays it seems to be our number one paying method. We are now even buying our groceries with our credit cards which would be fine if the amount you spend at the grocery store was the amount that is being charged by the credit card company.

However, the catch is the addition of interest to the purchase. Interest rates which are being charged by credit card companies are outrageous. We all know that in the back of our minds, but somehow we choose to put that knowledge aside when we do make a purchase using our credit cards.

If we would take a breather before using our credit cards and realize that when we get the credit card bill, the amount we are about to pay has sometimes nearly doubled, we wouldn’t go ahead with the purchase. You may be able to afford the purchase for the amount you get charged at the cash register, but not for the amount your credit card company eventually charges you.

When you use your credit card out of convenience, you really are being a thief of your own funds. It is crazy to pay almost double for your purchases just for convenience. You may be able to afford it, but if you take a good look and realize that a lot of your money goes to the credit card company without you getting anything in return but convenience, it’s just plain crazy.

You can pay with actual money or a debit card and put the extra money u used to pay to the credit card company in a savings account. This way you get your purchase for a fair price and you have a nice amount in your savings account pulling interest instead of paying interest.

When you use your credit card because you have seen this great new television or piece of furniture and you don’t have the money to pay for it, it really is a waste of your money when patience and self-control can get you what you want later on, for the actual price of the item.

Of course it is easy to buy it anyway and pay your credit card bill later, but you have to keep in mind that your bargain becomes very expensive once you have charged it on your credit card. On top of that, you feel really proud of yourself (and rightly so) when you have been patient and saved up to then go and buy whatever you’ve been waiting for.

When you find yourself in the situation where you have a choice to buy something on credit or be patient and save for it, just ask yourself would I ask someone to lend me this money? Because that’s really what you are doing when you put something on “credit”.

Often it’s an indication that you simply cannot afford it. Unless you monitor your spending and ensure that the credit card bill is paid in full every month, you can end up paying double the price of what you’ve actually purchased if you take into account interest, fees and charges.

Post has no comments.
Post a Comment

Captcha Image

prioritizing account fees credit bureaus borrower debt relief credit report debt solution bills honesty ill health monthly budget debt collection agency government assistance common debt traps extra payments charitable organisation bankruptcy court appearance security discounts stop harassment debt payment period repayment plans personal finance piling debts financial education budget ideas learning experience budget budgeting home debts bad debt management debt reduce debts credit rating cable bill expenses loans new job checks repay good credit insurances save money debt free home equity loans invest money receipt debt management mistakes credit history good budget payday loan debt consolidation loans negotiation management program payment behavior fly-by-night utility payments lose your job credit reports credit company great budget help with debt check card take control of debt bank mortgages credit card debt debit card checking account debt traps good credit rating purchases loan companies overspending great budget ideas negotiate paycheck education less money loan your rights credit score saving insurance creditors bank accounts job loss medical bill unexpected expenses loan harassment credit checks total balance credit card spending finances financial security past bad debt management advice allowance high interest rate original creditor liability full details cash card making payments own money tracking money whole family credit scores gambling problem payday loan companies help flat broke handling money good debt personal finances investing modified payment plan trusted friends spend money credit card company hobbies gambling debts specific budget categories salary savings family assistance live your life child support injury sickness control spending domestic support lending companies building debts down payment buying a house seperate accounts professional understanding interest internet unemployed monthly payment credit need money bad debt medical bills loan amount money family budget children budget asset info telephone bills software bad financial decisions Chapter 13 illness understanding home equity taking responsibility debt management advice child spending emergency savings account monthly bill losing a job tax info social services rebuild good credit pay off bill part time job debt collectors mortgage payments debt company common debt credit card help purchase protection become free back support cash introductory offers credit limit classify bills overbearing bills overcharging Consolidation Company house loan debt management tips ongoing bills debt collector help more income secured loan losing your job installment plans credit card traps installment plan chapter 7 account interest borrowing payment frequency interest rate savings account good credit record debt management initial research school jobs short sale second job debt programs worksheet home equity legal action order report lending company repay loans credit card companies managing debt household items budget categories car loan phone calls budget sheet younger children credit repair consumer lawyer monthly payments debts unsecured loan paying out debt account charges cancer live within means paying bills credit accounts regain control saving money income hospital visualization implement a budget restrict spending teaching children finance doctors interest payments get out of debt careful handling debt consolidation unreasonable expectations debt problems debt settlement assets credit line groceries management tips credit companies credit cards debt relief agency borrow money interest rates low interest paycheck info pay off debt loan agents comfortable living loss of income filing bankruptcy extra money children saving rent payments candidate debt consolidation medical debt child support debt deals in writing deb consolidation

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs