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.