Good and Bad Credit Card Debt
Posted in Life and Thoughts on Nov 29, 2007
I was watching the news today and the media was reporting about consumer who’s going to buy their christmas and new year’s present with a credit card. Some of the interviewed consumers even said that they aren’t able to afford these presents if there wasn’t a credit card in their pocket. What a shame.
Why do people actually do that? While I do agree with the idea of having a credit card for the convenience of having credit and not briging cash around all the while, that doesn’t give me the power to actually buy something that I won’t be able to pay at the end of the day.
Yes, you can use a credit card for emergencies or for good debts such as starting a business or renovating your apartment for rental, but using a credit card to finance your holiday shopping (which are bad debt anyway), that’s frankly STUPID, unless you are definately sure that you will be able to pay off the credit at the end of the day.
I’m proud to say that I dont have a single credit card in my pocket. My compny sponsored me one but it’s used just for business related purposes. I basically don’t need one. I have debit cards and they make sure I spend within my own limits. And even when I do need a credit card, I’m gonna make sure that it’s going to be used wisely for building assets instead of spending on luxuries, cars or toys that will mean nothing in the next 5 years.
I think the general truth is true: Think how you can get out of debt, before you actually get into one.
I’m actually looking forward to owning a credit card. However, it won’t be for personal use but mainly for purchases online for my company stuff. But still it’s going to be challenge in the long term.
Danny, and then there’s personal loans and business loans which you can look at. I think credit card interests are generally higher compared to personal/business loans
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