Stop using credit cards
Most people view credit cards as a luxury, but how much luxury does it really provide? Credit cards may have a few pros, but they definitely do not outweigh the cons. At least ninety percent of Americans have a credit card and out of that ninety percent eighty five percent report regular use of their credit cards. They are convenient and easy until we read between the lines and find that we are being taken to the cleaners. When purchasing item via a credit card we are putting ourselves in debt by multitudes that we did not realize at first. A good way to prevent additional usage, is to shred the credit cards. Looking into the fine lines of what a credit card really does for your finances may help you to come up with a better game plan.
Credit usage is at record levels due to many reasons most of these reasons are due to economical decline. When the economy changes so do our lives. Americans are experiencing many changes such as lay off, a reduced pay check and more. Turning to the plastic money until one gets back on their feet makes sense until we realize it has gotten out of control. These are reasons that are understandable but will be very costly in the end. Making a deadline may help but there are times when we have no control over our finances and it time to get a plan B. Cut corners in other ways so you don’t use credit cards is a start, but the best plan of attack is to not use them period. Consumers admitted that they spend more when having a credit card do to the convenience of just handing over the card. We must realize the damage that this is doing and put a stop to it. Keep one card and put it away for emergency purposes only.
If we understand what the impact is when using these credit cards it may help us to understand what is being done to our finances. When visiting a store and noticing that that item you have wanted for so long is now on sale from $25.00 to $10.00 you have to buy it right? What the consumer is actually doing is paying three to four times as much when they use that plastic. That sale item is $10.00 until one swipes his credit card. Once this happens the $10.00 item just became $30.00 to $40.00. This is the interests that are being charged to credit card owners. It makes it virtually impossible to get out of debt once the bills start pouring in.
Some of the more obvious problems with credit cards are all those hidden fees. They have late fees, annual fees, interest fees and so on. The average consumer with a credit card balance of $20,000.00 will be paying that balance off for at least 25 years or more. The bottom line here is if you don’t have the cash for it then you don’t need it. Wanting and needing are two different types of spending. Writing a list of what you need and only what you need may help you on your next shopping adventure, and remember to leave the plastic at home.
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