Why Credit Cards Destroy Your Debt Reduction Plans
Topics: debt reduction
Credit cards are just so convenient, aren’t they? There’s no need to carry any money with you ever again: you can just take one with you to the shop and pay the exact amount just by handing it over. If you haven’t been paid yet, then you don’t need to worry, because the money will still be there.
When you shop on the Internet or over the phone, it’s the only good way to do it – what else are you going to do? Like anything convenient, though, credit cards have a flip side – in fact, they have lots.
Can You Keep Track?
When you walk into that shop and hand over the card, the money is taken from the card, and the card goes back into your wallet. You still have all the things you started with – there’s no less money in your purse or wallet to remind you of what you’ve spent.
Everyone has a tendency to underestimate what they spend, and smaller amounts can add up quickly on a credit card without you even noticing. It’s like taking the way phone bills work and applying it to everything you buy – and that can’t be a good idea.
Money For Nothing.
Using credit cards is a great way of losing a percentage of your income to a credit card company in exchange for nothing. The moment you run a balance, you’re paying them interest. Not only that, but you’re paying your credit card bill as soon as you get your wages, so you don’t have the chance to earn any interest on them from your bank. When you think about it, you’re losing out twice over – and for what?
Designed to Keep You in Debt.
Your credit cards are trying to keep you using them and paying interest. You will find it very difficult to pay off all your credit cards once you have them. The company will do everything they can to stop you paying before you’ve paid them lots of interest. The more debt you show you can pay back, the more they’ll try to offer you, until they get you to the point where you can’t pay.
The Lie in the Name.
Credit cards are called credit cards to avoid saying what they really are: debt cards! You will do much better in all things connected to credit cards if you always remember this simple mantra: credit cards are debt cards. Use the word debt as often as you can whenever you talk about credit cards.
But Sometimes You Can’t Avoid Them.
When you need money in an emergency and you just don’t have any, there’s no doubting that credit cards can be useful. They are also a very useful way of proving to credit rating agencies that you can handle debt, and this will be taken into consideration when you apply for car loans or a mortgage.
Just remember that whenever you handle credit cards, you’re playing with fire. Do everything you can to keep your use of them to a minimum, and you’ll have a much better financial life.
Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida. For more on this and other debt reduction ideas and strategies go to www.dtsfinancialgroup.com
Previous Articles Highlighter:
What Determines Whether A Car Is A Sports Car (1)
They tended to be extremely small and exceptionally faster than most regularly produced cars. This historical moment gave birth to a notion of the sports car that survives today among many automotive enthusiasts.
Why Should You Wear A Helmet When You Ride Your Motorcycle (2)
For most of us bikers a helmet just doesn't fit our perception of what biking is all about, which is freedom! I mean, hey it just doesn't look cool to be on a hog with that little sissy helmet.
Do You Think You Can Afford A 2005 Porsche Carrera GT (3)
So what kind of impact did using all these lightweight materials have on the performance of the vehicle? How about a zero to 60 time of only 3.9 seconds?
Things To Consider Before You Get A Debt Consolidation Loan (4)
The most dangerous thing about debt consolidation loans is that the ones with lower payments generally last a very long time - you could be paying it off for twenty years, or even longer.
Why To Wait A Year For A Hybrid Car (5)
They also, though, a price tag of three to five thousand dollars more than a typical car and waiting lists of six months to two years. There are, though, three good reasons to purchase a hybrid, despite the waiting list.
Skincare Advice For Everyone (6)
If your skin is shiny or feels slick, especially on your forehead, nose, and chin then you probably have oily skin. Although, you may not think of it as a blessing when you are young it is actually a blessing in disguise because it naturally guards against wrinkles and the effects of aging.
The First True Production Model Porsche The Porsche 356 (7)
Topics: cars, performance auto parts, fast cars, car reviews, Porsche Even though the Porsche 64 is considered by many to be the first car produced by the company it was really only a test car and was never built as a production automobile, in fact only three were built.
Should You Sell Your Car Or Trade It In? (8)
Have your car detailed and make sure any major mechanical problems have been repaired. Prospective buyers will be willing to pay more for cars that are in better condition.
How To Pinstripe Your Car (9)
If you are looking for a layered look using many different colors you will probably want to go with stencil tape because it will allow you to place multiple stripes and colors without having to stop and wait for each layer to drive.
How To Find Affordable Sports Cars (10)
Of course the bargain shopper needs to enter the market well informed. Many seemingly great deals can really be busts for a buyer if they are not sufficiently educated.
Newer Articles Highlighter:
Some Ideas For Debt Negotiation (1)
Settling your debts takes a lot of time, and many people find it intimidating. If you do it right, though, you'll be surprised at how kind your creditors (that is, the people you owe money to) can be.
How To Buy A New Car Without Getting Ripped Off (2)
Don't forget sales tax implications either though. If you trade you will get a tax credit, if you sell outright you will lose that advantage, so be sure to calculate that in.
How To Easily Set Up Your Own Online Jewelry Store (3)
You could literally start in the morning and be collecting sales by the afternoon; all you have to do is market your new store so people know how to find you.
What Do You Consider To Be A Home Improvement Project (4)
If you think that you could possible reorganize the garage you may want to buy some garage storage containers to help you with the organization and make room for the items you need to remove in the house.
How To Choose A Travel Agent You Wont Regret (5)
Like anything else, the key to finding a travel agent you can rely on is research. You can start out by asking friends and family for referrals of travel agents that they have enlisted the services of.
An Insider Look At Auto Dealerships (6)
You also see many dealers hiring more and more women now. What usually happens when you come to a dealership is that they have someone who watches the lot and they mark down the salesperson's name and a description of you so they can make sure they keep track of what is going on.
How To Buy A New Car Without Being Taken For A Ride (7)
Don't buy into it, they are paid a commission based on the profit of the vehicle in most cases, so the more you pay for the car, the more they make.
What Are The Pros And Cons Of Diesel And Gas Engines (8)
Make certain that the vehicle will match your needs and give you the performance necessary to do the job. Gregg Hall is an author living in Navarre Florida. Find more about this as well as other Truck Accessories at www.truckaccessoriesetc.com
Tips To Make Your Trade In More Valuable (9)
Clean your car up before you even think about trading it in. Clean out the trunk, clean under the seats, vacuum it out. If you really want to get top dollar for your car I suggest you spend a $100 and have it professionally detailed.
Bluetooth Profiles Explained (10)
These profiles won't normally define any additions to the Bluetooth specification, which is why you can add new profiles where you need them. The Bluetooth underlying technology is the same, only the specific method that it's used is defined.
Permalink to Why Credit Cards Destroy Your Debt Reduction Plans