Use Credit Cards Responsibly
View PDF | Print View
by: moe.flanders
Total views: 259
Word Count: 506
The findings of its yearly survey of consumer credit card behaviors was just released by Consumer Reports. It found that 12 million people in this country still owe money from holiday spending from 2007. An increase in available credit the past decade has made it very easy for consumers to have multiple cards and has lured many into spending beyond their means. Given the recent credit crisis, there is a trend in banks requiring higher minimum payments for balances on credit cards. Many consumers are turning to the use of credit cards, in the absence of once available loans and lines of credit. Though practical, credit cards can easily contribute to debt, if not used responsibly.
There are many advantages to using a credit card, especially if you are making an expensive purchase. For one, you do not have to carry a wad of cash in your wallet. Unlike paying with cash or check, credit cards give you some protection. If someone fraudulently makes a purchase on your card, you usually are not on the hook for more than $50 of that purchase. It is also easier to dispute issues you may have with customer service or a product, if you paid via credit card. And the click and mortar internet retail sector would not be able to sustain itself without payments made via credit cards. Credit cards allow you to quickly purchase something and have it delivered to your door. It eliminates the need for cash on delivery or money orders. Lastly, purchases made with credit cards can be easily tracked. You have to remember to keep and file receipts and invoices when you use checks and cash.
The convenience and security of credit cards have made them a common spending mechanism. Credit cards can also seduce consumers into easily spending more than they should. It is all too easy to pay the minimum payments each month and keep increasing the balance. In a perfect world, all purchases made on a credit card would be paid in full each month. Doing so would mean that nothing would be paid in interest. But by making only the minimum payment, most of that bill goes toward interest and not the balance. When consumers do not pay the balances on their credit cards in full, therefore, it is not difficult to increase debt.
Credit cards should be viewed as a method of payment, not a loan to buy things that a consumer cannot otherwise afford. Payment schedules should be followed to avoid fees, and balances should be kept within responsible ranges. If you responsibly purchase with and pay off your balances on your credit cards, you will also be able to handle emergency expenses more readily than if you carried balances on your cards. Remember that the credit cards are in your name and you own the balances incurred on them.
Articles Honda hybrid --
About the Author
Find more info about honda cars, go to carsauction.meblognow.com.
Rating: Not yet rated