Is This Your Credit Card?

If you talk to some people they will tell you that credit cards are the reason we have got our country in such financial distress. Spending money we do not have is never healthy. Then paying it back at such a high rate that we have to borrow money to pay off those credit cards.

The truth is I have met very few people who can resist the temptation from the buy now pay later demon. I must admit that there are time having that available credit can be helpful in time of personal disaster. However, it must be used with discipline of the highest order.

For me the idea of giving someone $10 to $20 on borrowing a $100 is a waste of good money. However, the America lifestyle demands that we have at least one credit card, if not more. Otherwise when it comes time to buy a house, a car, or other big ticket item we are turned down, for lack of credit history.

You can always say that if you don’t have the cash then you don’t buy it. Our culture says that it is a noble idea but not a very practical one. Enough look a the social economic impact of credit cards and now let us look at the numbers.

Want the real numbers? Want some good resources? Just log-in as a member. If not a member, you can be one for just $2 per month. Or you can donate $20 and I will personally send you a log-in and password for a one year membership.

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If you absolutely must have a credit card then you need to compare all the different credit cards, rates, you can even apply for one through one central website. CreditCards.com is the place I would recommend as your starting point for you.

Before I buy anything with a credit card, I check calculate how much that item is really going to cost me. An easy way for me to calculate the extra money that I will be spending by using a credit card calculator. It is one way to scare you away from using a credit card.

Now consider using your credit card for a weekend getaway. After lodging, meals, travel, and extras you charged $1,000 on your credit card. You card rate is only 12%. That means when paid off the interest rate is $120. Yes if you paid it off in less than 23 months.

Let us say, when you get home, you got hit with some medical bills, your car broke down, and you forgot about the back-to-school clothes for your kids. Instead of paying $50 per month, like you planned, you can only pay $25 per month to the credit card company. Now that $1,000 will cost you $269. Then if you are late on a payment of two the $269 will go up.

Bottom-line: It takes a great deal of discipline to manage a credit card. If you don’t believe me, look at the history of the United States over the past $50 years.

Tags: American Evil, American lifestyle, credit cards, evil