Sep 26 2008
The credit card debate
Are credit cards necessary?
We can argue this point, to some people credit cards are toxic, to others they beleive there a necessity.
The necessity group say they pay off their card every month. But credit card companies are in the business to make a profit, and if everyone paid off there credit cards every month for reward points they would be out of business.
Here are some of the down fall of using these products:
http://money.cnn.com/2008/09/26/news/economy/creditcards_kimes.fortune/index.htm
http://news.yahoo.com/s/livescience/20080907/sc_livescience/studycreditcardscausemorespending
http://www.daveramsey.com/the_truth_about/credit_card_debt_3478.html.cfm
I have a card myself, so I can see both sides of the argument. I only have one card though, not several of them, and I try to keep either a really small amount on or nothing. I don’t like to carry a balance for any extended period of time, and I use it mostly for internet purchases. I realize that convenience probably will have some cost to it, so I make myself aware of those costs. No one can rationalize paying hundreds or thousands of dollars a year in credit card interest for the convenience of a card .
I view credit cards as a snake in the grass, and I limit how much I use them, knowing that in the agreement they have a universal default provision that allows them to change the terms at any time. User beware!
Credit cards are a part of our culture, just be aware of what the true costs are, and spend wisely being aware not to borrowing out your future to working for the “monthly payment plan”.
