Do Not Abuse Your Credit Cards
August 23, 2007 – 4:07 pmAlthough I already have quite a few credit cards and debit cards, I still am looking for others which may have different, better, benefits. I don’t really know how many types of credit cards there are in the market but it looks to me that every credit card company is clamoring for our business and baiting us with lots of goodies. They don’t even know if we CAN afford to keep so many cards, or if we are disciplined enough to charge our cards and yet pay off our credit card bills on time at the end of the month because interest is charged on our outstanding debt.
When it comes to credit card matters, I have a guru whom I could consult. He works as a Risk Manager so he calculates all the risks in life first which is good for me so that I do not have to go into something blindly.
According to him, cards with 0% APR are pretty good deals. I noticed that the Discover credit card has a 0% introductory APR with balance transfers for twelve months. I wonder what my friend thinks about this.
I previously did research on Discover credit cards and even wrote a post about it but I procrastinated in getting it because at the back of my mind, I am certain that there will still be a card that will suit me BETTER. I guess I am just too hard to please!
One thing my friend taught me way before I even owned my first card was to never let my credit card bills accumulate. I MUST settle them all before the deadline to avoid interest charges and they could be rather high and before I know it, I may be facing a huge debt. My friend advised that credit cards are convenient but never misuse or abuse them or we will have to face the consequences. There is just no two ways about it. Until today, I dare say I am handling my credit cards pretty well and when I am doubtful IF I could settle my bill when it comes, I rather use my debit card.
I am not sure if you know the feeling of curbing that temptation of charging your credit cards as you like when you like. Boy, I am struggling with that devil every single day. I would love to just shop, shop, shop and shop just by charging my stack of credit cards but I MUST RESIST! I MUST NOT SUCCUMB!
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2 Responses to “Do Not Abuse Your Credit Cards”
The reason credit card companies are begging for our business, is that they know the majority of people are too stupid to spend responsibly, and before long they’ll be paying that sweet sweet interest.
My sister started with the credit cards when she was 18 and she’s still suffering as a result of it today.. she’s still not the brightest spender so that doesn’t help, and I’ve given up trying to help.
I on the other hand have usually only have 1 credit card (aside from debit card), and I’ve carried 2 in the past. What does a person need more than 1 for, unless some are are for specific purposes (earning airline miles for specific purchases, while the other doesn’t). I have a card and use it VERY regularly, but I also pay it off EVERY MONTH.
Bottom line: Spend like it’s cash. Stay on top of your bank balance and just pretend when you buy $100 in groceries, that you simply went to the ATM and took out $100, because you should consider that money gone so you don’t get shocked when the bill comes and you’ve spent the $100 cash also.
I guess I just get frustrated over the fact that it seems like hardly anyone “gets it”. Folks - don’t spend what you don’t have, unless it’s an emergency. Could I go buy $6,000 in new TVs and home theater equipment on my credit card right now? Would I like the items? Yes on both fronts… but I don’t need them, and I’d simply be screwing myself with interest for years.
I don’t make a ton of money, but I spend about $600 on my credit card… buying groceries, gas, fast food, paying bills online, etc. I do it because it’s easier than writing checks and carrying money, and because I earn points.. but I’m always conscious of what I have in the bank. Why is this so hard for some people?
By Randy on Aug 24, 2007
Wow Randy,
Thanks for coming by and commenting with such useful advice! You comment is almost as lengthy as my post!
I totally agree with what you wrote. It is hard to pity people who are saddled with credit card debts because they have enjoyed life with the charges against their card, unless they were fraud charges.
I also do not get why it is so difficult for people to learn not to simply use their credit card without knowing for sure if their income could cover their expenditure. But I know that many people use their cards on impulse, at the spur of the moment, because something caught their fancy… Oh oh bad news then
By Cyberpartygal on Aug 24, 2007