Incorrect Financial Advice – Credit Cards
Everyone has heard at least one story about persons who landed themselves
in a downward spiral of debt because of reckless credit card use.
It is a real possibility, as it allows people to spend money that they do not yet have.
How can any good come of such a dangerous type of power.
It is always preferable to avoid debt when possible.
Purchasing everything through cash transactions will always
ensure that the least amount of money is spent.
This, however, is neither realistic or safe for large purchases.
Here is where all other methods of purchase come into play.
While there are many other forms of payment devices such as
personal checks and online transfers, credit cars seem to be most common.
Credit card companies have come under fire in the past for
allowing customers to incur an unreasonable amount of debt.
This debt is not entirely through purchases but through
transaction fees and interest on the balance owed.
People tend to spend more with a credit card and every transaction costs!
Is that the reason that businesses have made credit cards a financial necessity?
It goes without saying that they are needed for Online Transactions
but even Hotel Check-ins/bookings have been seeing less cash transactions.
Does the collective business community have a selfish agenda when it comes to
facilitating credit cards and credit for the general public?
Some do not want to hear any evidence to the contrary.
It is possible to destroy your financial security with a credit card but the bottom line is……
Credit cards are NOT the devil!
Credit cards are a tool that allow people to obtain things that they otherwise
would be unable to attain (much like hire purchase).
I draw a parallel between the two because they both add seemingly high
interest rates to increase the cost of purchases in the long run.
Before hire purchase, the only option available was full cash payment.
Those who needed a fridge or stove immediately, were out of luck.
How would they eat? How do they survive until they could save the money?
To obtain a necessity instantly, the inflated interest rates are an acceptable price.
Credit cards present the same issue.
Is the use of a credit card worth the fees to be incurred?
There are many more reasons available (other than being unable to meet the cost).
Travel Insurance, fraud protection and many other perks made available by the
individual companies, make holding a card much safer than holding cash.
At the end of all credit based discussion the underlying issue
eventually reveals itself as the management of debt.
An individual must first learn to manage credit and debt
before they try to use the tools of the trade.
All businesses need to go into debt at startup before eventually making it out.
Some of us may have lives that follow a similar path,
where debt is an inescapable part of managing money.
Some people fail at becoming financially secure,
but it would not be fair to blame business, credit cards or hire purchase.
They are simply tools and do not cause failure or success.
Have a plan for your future expenses.
Pay attention to the fine print.
Exercise control over your spending habits.
My name is Brett Cruickshank
Contact me @ https://www.facebook.com/brett.cruickshank.75
Use your buying power to ensure your future prosperity.
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