The Truth of Credit

I have pondered this question quite often and my opinion changes almost daily. On the one hand I am constantly reminded how credit card companies raise rates for no reason and have collected zillions of dollars in fees. Then I think about all the times I have used my credit card when in a bind (i.e vacations, car trouble or lack of money). So is it really just a scam?

Yes:

High Interest: These high interest rates are enslaving people. I personally made a payment on a card last month $100 over the minimum and when I got my statement today it barely took $75 of the balance I owed.

Universal Default Clause: This is a joke and certainly needs to be revoked. I think the credit card companies wanted to see how much pull they had with the government when they thought up this clause.

Consumerism: Why budget and save when you can have now? This is a mentally that needs to be of concern to everyone. If you consider your personal finances as a business you will understand that buying a “nice car” is the same as buying an office space for a business that has not sold one product. It’s the proverbial “Cart before the horse.”

No:

Convenience: Credit Cards, if you pay them off each month, allow you the convenience of not having to carry money around, can be used anywhere.

Rewards: Some people really benefit from using their credit cards because of the perks such as free flights, cash back, and other gifts that can be earned. This is one way to stick it back to the card companies. My favorite card’s perks to take advantage of is American Express.

Safety Valve: If you are in a pinch and don’t have the money in your account that very second, some companies allow you to defer payment until you do have the money.

The TRUTH is a credit card is something that takes skill to use. If you use it without care, the results can make your life miserable. However, if you harness the positive it can reward you greatly and make your life a lot easier

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