Earlier, I wrote that it is getting way easier to obtain a credit card and while cutting down on red tape is good, I noticed that many of my friends are spending more than they earn. The recent notice that petrol stations gave about not accepting credit cards for fuel purchase has made many of my friends scream in protest. This shows that they have been using fuel on credit and paying the bill only upon receiving their pay cheque at the end of the month.
I feel that when we are swiping our credit card, we should already have this amount of money in our bank account and the reason we swipe our card is because we did not carry enough cash, or we would like to gain a little loyalty bonus.
Sadly, this is not the case with many people I know. Of course, I am not saying that everyone who uses his or her credit card is overspending and out of budget but this is the problem with most people I know. If only everyone of us know that credit card can actually cause more harm than good if we do not use it properly!