That flat bit of plastic can be a boon or bane depending on how wise you are in using it. As long as you use it wisely, it can give you the chance to get what you want. But if you lose control and use it for those things that you don’t really need then it can bind you in financial problems that can make it impossible for you to supply even to buy your basic needs in the future.
Credit cards are a bane for several reasons: they supply much needed instant cash for emergency needs such as your child’s school requirements; they are convenient and safer to carry than cash for traveling expenses; they help give you good credit history in case of future loan needs; and they are convenient tools for payment of online or phone purchases. Almost all cards also give bonus points or incentives that can be redeemed such as discount rates for purchases.
However, credit cards can become a bane and huge financial traps when you give in to your shopaholic tendencies. At 3.5 percent, they cost much more than other forms of credit, especially when you get charged with over-the –limit fees and late charges for delayed payments. Once you get delayed in your monthly installment fees, your problems will multiply fast. The more you get delayed in paying your ballooning fees, the more frustrated you become as see the exponential increases on your card collection bills. These can result from interest payments on accumulated fees you have failed to pay.
As you buckle under the financial pressure and fail to pay or get more and more delayed in paying your credit card bills, your credit rating eventually becomes tarnished and you can get blacklisted for bank and other loans. You will then be forced to borrow from other sources just to pay off the smallest monthly fees, and soon you’re buried in debts up to your neck. Your woes can multiply overnight because of complicated credit card terms and conditions which you failed to note or even read right from the start. This can lead you to the end of your financial rope.
So what to do? Right from the start, you have to learn how to get a measure of control on your expenses. As you experience credit card woes, stop using them right away, confess your problems to the company, and apply for easy-payment terms. On the condition that you stick to them and stop using your other cards, you will soon experience a lightening of your credit card woes.
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