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

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

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

Finance Blogs
best blogs