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Credit Cards
Hey, you're an American right? Time to
sign up for the largest maximum credit limit possible. Spend, spend some more.
Credit cards are no small thing in our society. Everyone can be tempted to
"master the moment". But the price may be very high. Interest rates
are among the highest out there. Only payday loans carry higher interest
rates. But they can be a godsend in an emergency and can even be a smart
way to pay for things.
Credit cards usually offer pretty good
protection against fraud. Debit cards do not. So when making
purchases online, especially with unfamiliar websites, you may want to use your
credit card for that reason. Also, some cards offer up to 1% cash back,
and a 30 day grace period with no interest. So if you pay for things you'd
be buying anyway, then pay it off in full every month, you can save money.
Also, as long as you pay the balance in full every month, you may enjoy things
like frequent flyer miles or other promotions from the various companies out
there.
Of course, it is a bit of a trap for many
people considering that 55% of Americans carrying an ongoing balance on their
credit cards. Once you get in the habit of using them, an emergency, or
holiday will tempt you to spend that extra amount, and there you go. A
balance with a tiny monthly payment. You payment is small enough that it
seems no big deal. So it's easy to spend a little more. It's hardly
noticeable on your statement, but the problem is that the minimum payment will
never get the thing paid off. You will be paying them forever. So be
strong. Never carry a balance month to month. Always pay it off
monthly, or just wait until you have the money you need.
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