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.



Comments
Post has no comments.
Post a Comment




Captcha Image






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



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

Finance Blogs
best blogs