Use and Misuse of Credit cards
Are credit cards good or bad? Wel, that depends on how you use it. We'll look at some practical advice and applications for the use of credit cards.
Credit cards are very useful tools if you know how to use them wisely. For example if you pay your regular bills using credit cards, you're actually simply using the payment to gain points or rewards offered by the credit cards. That's getting more bang for your buck on your regular payments.
Another useful application of credit cards - emergencies. There are times in life when emergencies require an injection of cash. However, make sure that you are able to repay that debt quickly. Lending insitutions do not want people to pay their credit card debts on time because of the 18 - 21 percent interest that is earned from credit card delays.
Which is the best credit card out there? Most people tend to look for credit cards that give you tempting rewards like travel incentives, or discounts at expensive restaurants. But most of these perks are not your regular bills and payments. Unless you fly often on business trips, travel rewards are aimed at getting you to spend more. Choose credit cards that comes with discounts to your regular bills, like gas.
When are credit cards bad? The answer is simple. To fuel a consumptive lifestyle. A Consumptive lifestyle is spending more than you can afford. Almost everyone is America falls victim to living a consumptive lifestyle. America is now paying for its lifestyle. You'll be surprised but men tend to buy bigger items irresponsibly - boats, cars, invesments, and second homes.
Never use your credit cards to pay for debt. The debt amount will just keep mounting. Many
people justify indebtedness with the thought that they are making an investment
when they purchase items. That's an unwise assumption.
When choosing credit cards, make sure you gain from it instead of using it to fuel a consumptive lifestyle.
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