moneyreallymatters.com

Nowadays, nobody likes to carry even a dollar in their wallet. It is all plastic money that dominates the wallet space. Recently the trend is changing due to credit card debt problems which surmounts to 978 million this year, second to mortgage debt. Many are turning back to greenback cash to safeguard themselves getting lured into their own credit card crisis. But still credit cards are an attractive item around the world among people who can manage and manuver around the loop holes without getting trapped because of its unbeaten promises.

Credit card is one among the most wanted item by broad range people starting from teens to age old adults. A funny thing about credit card is, you should have a better experience in borrowering money and paying it back (which is translated a good credit history) to borrow even more money. Credit Companies loves to lend you money if you are one of that kind who has good history by sending attractive offers but they except you to fail in a way so they can make money out of you by keeping you in debt. They need a good borrower to lend money and expect a chance to make you bad to make money out of you via interest payments. Isn’t a really tricky business model or what?

Credit card is one of a kind invention by mankind but it can’t escape the ravage of consumer critisim. It has two sides like any other consumer product with both bad and good.

I have many of good points to say listing few below,

1.Avoids carrying cash around

2.Free access to money when in need but comes with fees and charges

3.Usability everywhere in any stores, theatres, theme parks, online stores, online advance bookings etc.,

4.Buy anything from anywhere around the world without local currency

5.Free Auto&Travel Insurance Protection by many cards

6.Help to build good credit history inturns helps to get big things

7.Money back in dollars and gift cards8. Airline miles, Merchandise/Gift points and so much more.

In the bad side though, I don’t have many to complain which are 1.Indulge in shopping spree without any penny in hand,

2.Free access to Money which can drag you into debt

3.Charges and High Interest rates can eat your savings

4.Opportunity to lose identity easily by losing the card

Looks like the number of pros beat the hell out of cons. Most of the disadvantages can be easily overcome by proper money management and cautious credit card handling methods.

It depends on each of us unique lifestyle. Everyone needs to evaluate their own situation keeping the good and bad aspects into context and take a decision.

According to my view,

1. a very well managed and organized person can handle credit cards without any trouble and even make money by investing the free money from credit cards.

2. If you are starting out in your career, start out slow but apply one card at time and building your credit history slowly. If the foundation is strong, you can build a very good house on top of and realize your dreams with a good history.

3. If you are kinda of person who never can save or hold the money tight and always go shopping spree, it would be hard one you. You might endup in debt if you cannot pay back your expenses.
 

So it is a really tricky tool which works wonders when it with a person who knows how to handle using knowledge and experience. Otherwise it can get you in trouble and even make your life a disaster.

I have lot more to talk about credit cards like what you need to know before getting one, what are the ways thieves can hijack your identity and what you need to know when your card is stolen. Pretty good stuff coming, so watch out.