April 2, 2008

Sensible credit card use

There is a deepening debt crisis looming and nobody really knows exactly what is going to happen with the world finances, but there is one thing that you can do to help yourself and that is get control of your own finances and to be more precise your credit card.

Now there are many offers out there that are saying 0% on balance transfers etc, we have all seen these adverts that appear everywhere in mail, magazines and on the TV. It is here where the temptation comes into play and like a child with a new toy; there is a rush to get this card up its limit, after all its not real money is it?

This is where problems begin, especially when there are several credit cards, this can quickly build up to a sizable debt, which if the minimum payment is paid, will actually take many years to pay off, while in the mean time you are struggling to pay other important things like rent, mortgage and bills.

Credits cards are great for emergencies, buying online and travelling, but not for everyday finances.

Source [Fresh Finance]