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Credit Cards: New Money For The New Generation |
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Even those who have long denied the necessity of credit cards must now accept that they have become a crutch in today's society. Credit cards are everywhere. Many people cringe at the thought of using a piece of plastic to pay for things. Others worry about getting into too much debt if they get credit cards. Despite the negative opinions, the bottom line is that society as whole has come to accept, nay embrace, credit cards. Credit cards, or plastic money, are new money for the new generation and have found acceptability among older generations as well. Credit cards have their advantages and disadvantages. It is easy money, fast money, and that is the biggest advantage attached to it. Reach into your wallet or purse, pull out a card, swipe, and you are done. It is very easy to use credit cards. Credit cards are a great way to make purchases and record your spending to the penny. They also provide a way to postpone payment on items and thereby earn more interest on your money. For example, if you have a money market account that gives you 5% annual interest and you spend $1000 a month through your credit cards, you can keep that $1000 in your money market account for an additional month. At the end of a year you would have earned an additional $51.16 for doing nothing. Now $51 may not be much, but it's free! Accept the challenge and get your own credit cards! There is no reason to be down about the inundation of credit cards. You can't beat the indebted, so you might as well join them! The fact is that there is nothing to fear about credit cards. Credit cards provide the user with an open line of credit that he/she can use as per their requirement. Each and every credit card has a set credit limit offered. This credit limit is defined by the kind of credit card issued, and mainly by your credit report. Your credit cards allow you to borrow money up to the designated credit limit. Some times it allows you to go slightly beyond the credit limit, depending on the type of credit cards that you possess. In such cases you will find the words "Pay Immediately" along with the minimum balance in your monthly statement. You can repay this money as you see fit: in monthly installments, which invite interests, or at one shot. A grace period is offered, usually up to 20-25 days, during which no interest is charged. Besides offering you access to money, most credit cards offer additional benefits such as medical insurance, balance transfer benefit, shopping benefits, etc. Credit card users are a happy lot. They spend freely, and get what they want, when they want it. Credit cards make buying things easier than ever before, but it's important to keep track of your spending. Even though it is fun to spend with abandon, a certain amount of responsibility can save your credit, and increase your satisfaction with your decision to accept credit cards usage. While this route is certainly more boring, it is safer, from the standpoint of not ruining your financial future. Remember, each time you buy something with your credit cards its like taking out a loan. Incidental and impulse purchases add up, and when the bill comes, you have to pay what you owe. So, by carefully considering purchases with credit cards, and by making sure you have a concrete way to pay the balance in one or two payments, you can greatly increase the chances that your credit cards can become a credit enhancer, as opposed to a credit destroyer. There are many reasons to feel sorry about the introduction of the credit cards: rampant consumer indebtedness, an increase of bankruptcies, the widespread acceptance of irresponsibility, a growing distaste for discipline and hard work. However, the credit cards are here to stay, and you must accept the fact. Some things can't even be accomplished without using credit cards as assurance (some reservations, online shopping, etc.). But with a little prudence and some self-restraint, credit cards can be very satisfying. |
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