Why Credit Cards are a Bad Idea

Why Credit Cards are a Bad Idea.
When you shop on the Internet or over the phone, it’s the
only good way to do it – what else are you going to do,
post a cheque? Like anything convenient, though, credit
cards have a flip side – in fact, they have lots.
Can You Keep Track?
When you walk into that shop and hand over the card, the
money is taken from the card, and the card goes back into
your wallet. You still have all the things you started
with – there’s no less money in your purse or wallet to
remind you of what you’ve spent.
Everyone has a tendency to underestimate what they spend,
and smaller amounts can add up quickly on a credit card
without you even noticing. It’s like taking the way phone
bills work and applying it to everything you buy – and that
can’t be a good idea.
Money For Nothing.
Using credit cards is a great way of losing a percentage of
your income to a credit card company in exchange for nothing.
The moment you run a balance, you’re paying them interest. Not
only that, but you’re paying your credit card bill as soon as
you get your wages, so you don’t have the chance to earn any
interest on them from your bank. When you think about it,
you’re losing out twice over – and for what?
Designed to Keep You in Debt.
Your credit cards are trying to keep you using them and paying
interest. You will find it very difficult to pay off all your
credit cards once you have them. The company will do everything
they can to stop you paying before you’ve paid them lots of
interest. The more debt you show you can pay back, the more
they’ll try to offer you, until they get you to the point
where you can’t pay.
The Lie in the Name.
Credit cards are called credit cards to avoid saying what they
really are: debt! You will do much better in all things
connected to credit cards if you always remember this simple
mantra: credit cards are debt cards. Use the word debt as often
as you can whenever you talk about credit cards.
But Sometimes You Can’t Avoid Them.
When you need money in an emergency and you just don’t have
any, there’s no doubting that credit cards can be useful. They
are also a very useful way of proving to credit rating agencies
that you can handle debt, and this will be taken into
consideration when you apply for car loans or a mortgage.
Just remember that whenever you handle credit cards, you’re
playing with fire. Do everything you can to keep your use
of them to a minimum, and you’ll have a much better financial
life.