The Perils of Credit Cards
During the current recession brought upon us by the recent so called ‘World Wide Credit Crunch’ we must be mindful of the perils of spending on our credit cards. In a credit funded society such as ours where we have been brainwashed by the banks over the last four decades into believing that living on credit is acceptable.
It has become fashionable to have a hoard of credit cards, all with varying credit limits. In most cases spending up to the limit isn’t a problem as the banks will just increase the limit to encourage further spending.
If you are one of those who settle outstanding balances monthly, well done and its likely that you see a credit card as an essential part of your shopping habits . In this instance the short term borrowing will either be free or relatively inexpensive as the majority of credit cards do not charge interest in the first month.
It all sounds fine until you realise the perils of a thoughtless approach can cost you dear. In the wrong hands a credit card can be dangerous and commit the gullible to long term debt which ultimately can work out hideously expensive.
Other than the perils of credit cards a cardholder does receive the benefit of protection under the Consumer Credit Act and most card issuers also offer many other benefits such as cheaper insurance, fraud and identity theft protection, special rates with certain outlets to name but a few.
For those who do not fully understand the implications of using a credit card there are web sites available that can provide a totally impartial viewpoint detailing the benefits and pitfalls of various credit cards in jargon free plain English.
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Comments
Hi Aaron
Sure go ahead, are you going to link directly to the perils of credit cards or the home page?
Paul
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Credit cards are nothing but borrowing a money or a loan. It works on the people mind to spend lavishly since no hard cash is used. So they spend more. In each family there should be no more than one credit card.
Sure credit cards are borrowing the perils of credit cards relate to poor use of the accounts. If you over spend and cannot afford to pay them back yes its an issue. However to avoid the perils of credit cards make sure you set up an automatic payment system like a direct debit int he UK and you will get the loan for free for up to 6 weeks which makes sense doesn’t it?
Credit Cards, Today lots of bank are issuing credit cards it is benefit of us because if you unable to pay on the spots in any shop and mall, shops and mall owner are accepting their credit cards, you have lots of money in your accounts but now this time not further amount on the spots so how will do so bank are issuing the credit cards expects of this problems.
Credit card can be good or bad depends on the person like guns can be good or bad. It’s up to the individual to properly educate him or herself on the perils of credit card and have the discipline not to spend outside their means. It’s a useful and convenient tool to spend your money so long as you can pay it off by the end of the month, borrowed money interest free.
Hello.
I would like to put a link to your site on my blog roll if you want to do the same for mine. It would be a good way to build up both of our readerships.
thank you.