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FP Article 18 (To sign up for a FREE 6-lesson eCourse on Defeating Credit Card Debt, please click here.)

Credit Cards - Friends or Foes?

by Rajen Devadason

In the hands of a naive or undisciplined man, a credit card can have the same effect on fiscal health as an unpinned grenade can have on physical health! 

Rajen Devadason

  Almost all of us have a love-hate relationship with our credit cards. 

We love them because we know that as long as we have them in our wallet or purse, we are 'safe'. Even if we run out of cash, our plastic is there to bail us out.

Unfortunately, many of us have also come face-to-face with the ugly side of credit cards. Just as ancient sirens drew mariners to their deaths through irresistible calls, our credit cards have the power to trap us! 








They usually do so by luring us into believing that it's entirely permissible to buy that which we have not yet earned the right to own. Any time you hear or see an advertisement that hinges on these three magic words 'You Deserve It', beware!

Of course, not everyone has a problem with credit card debt. But a lot more people do than you probably would imagine. You see, for many people, rampant credit card balances are a source of secret shame that they don't care to share with others around them.

This is an article on understanding the pros and cons of credit cards. I hope you enjoy reading it. But if it isn't what you're looking for, you're welcome to search for something that better meets your needs. Thank you for allowing me to serve you.

Rajen Devadason

Web www.FreeCoolArticles.com










But that's not to say that credit cards are evil inventions of the devil! Of course, they aren't. In the right hands, when used correctly, they can be a source of safety, security and sanity.

Let me explain:

Safety - It is usually a lot safer to walk around with one or two credit cards in your wallet than to saunter along busy urban jungles with fat wads of cash visibly swelling your pockets.

Security - If you've ever driven into a strange town at night, exhausted and needing to check into a hotel room where you can have a hot shower and climb into a bed with clean sheets, then you know how great a source of comfort and security a credit card can be.

Sanity - When you've had one of those months that everyone has to deal with at some stage, when the money runs out long before the next pay cheque, you know how much calmer and saner you feel knowing that your credit cards are there to magically allow you to reach into the future and tap tomorrow's funds for today's pressing needs.

The fact that this site is credit card-enabled shows that I understand the potential benefits that can accrue from correct usage of those pretty pieces of plastic.

For instance, if you wanted to buy one of my ebooks or eReports because you craved practical, usable teaching in life planning or goal-setting or time management or mission statement crafting... you get my drift, you would need a credit card to do so here.

Unfortunately, when that same piece of plastic is used incorrectly, as it often can be, a credit card can become a plastic prison that impoverishes you!

This happens because many people do not realise that running a charge on a credit card is EXACTLY the same as spending cold, hard cash... only more so.

Studies have indicated that some people spend between 20% and 40% more during a shopping spree if they pay using their MasterCard or Visa credit card than if they were to rely solely on cash.

Fancy carrying out an experiment?

Tomorrow, go out to your favourite store with only cash in your pocket. Buy whatever strikes your fancy. See how much you spend. Write that amount down.

Then wait a few days and return to that same store. This time make sure you have no cash at all in your pocket, only a couple of credit cards. Again, see how much you spend. Write that sum down.

The difference may be staggering.

So, in closing, if you plan to manage your money well throughout the course of your entire life, be careful. You want your finances to work for you; not vice versa!

So, please take the time to look long and hard at your credit card usage patterns. If you belong to the minority that is able to handle credit cards well, then please continue doing so.

But if you are part of the majority that is constantly in the position of having to pay late charges for not settling your credit card bills in full each month, then do whatever you need to do to make things better.

Track, measure, research, read, think and plan your way to fiscal responsibility! Toward that end, you might find it beneficial to read my article Escaping Debt Slavery.


© Rajen Devadason

Web www.FreeCoolArticles.com






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