My Take On Credit Cards
May 5, 2007 – 8:21 pmI was just discussing with a friend about credit cards. He was lamenting that his interest rates are getting higher and higher. However, as I understand it, if he paid his credit card bills on time, there is no interest charged. Or am I wrong? It is not that one should not use credit cards but one should use it responsibly. Many of my friends who are only in their twenties are already bankrupt. Seriously! I believe in my parents’ time, where credit cards were so difficult to obtain, there weren’t that many people who got themselves bankrupt due to credit card debts.
Now, when my friends ask me what credit cards to obtain, because I compare credit cards all the time, I will tell them to get credit cards that either give them cash back or some other rewards that they find useful, or better still, use a prepaid credit card, especially for people who cannot control their spending.
As for people who are already in debt due to credit card, know that this did not come suddenly and similarly, they cannot be rid of the debt overnight. They should manage their credit card debts with 0% balance transfers. By taking this deal, people would be able to apply for repayments to reduce the principal and not incur additional debt due to the high interest rate, hence reducing debt over time.
Like I mentioned, use the credit card but use it wisely.
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