Credit Card Debt and You

Credit Card Debt and You

People often talk about credit cards and all the evil it can do you but have often have you stopped to think of all the good these cards can do for you. For all the tales you can tell me about how credit cards were the ruination of someone, I can offer you personal finance tips related to people I know using these cards to avoid the impact of personal bankruptcy. Of course, one of these methods is to use credit card consolidation to get out of debt, but that is just one of the reasons why I say the cards can be used for good.

No, this is not a paid-for message issued by some credit company. I’m serious about this; a credit is nothing more than a symbol of an agreement between issuer and you. It’s not as if you were held at gunpoint within the comfort of your own home and made to sign that agreement. The worst personal finance tip anyone can give you is to use a credit card as if you have a license to kill. Nothing could be further from the truth. The ones that are smart use a credit card for what it is, something that offers you the freedom from carrying cash and paying up for about 45 days. If you use it responsibly, an interest rate of even 6,500,000% would not bother you since you know you will always pay on time and never have to pay a cent in interest.

It is the people that do not read the fine print that have a major problem on their hands. Credit card companies bank on the fact that poor schmucks such as these will not get into detail to read about the card, even if it takes nothing more than a few minutes to do so. And, most interestingly, it is these people that will always be filing for personal bankruptcy and looking at options like card consolidation. Again, credit card consolidation is a good thing, but I ask you this; would you allow Michael Vick to look after your dog? Then how can you sat that a proven abuser of credit (such as users of credit card consolidation services) will not abuse a zero interest card service? It means these poor folks are locked into a cycle of debt that will be very hard to break for them.

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Look, let’s face it.These cards are something that is too much for many people to wield. The media (mainstream, electronic, you name it) will always try to get a good story and talk about several stories of personal bankruptcy that fail to criticize people’s spending patterns. I know of people going to Switzerland in a week’s time telling me that they wish they had the money to pay off their debt. Really, buddy? You want a personal finance tip, I’ve got one for you; take your debt issues seriously and stop playing pin the donkey with your credit card. It only has as much power as you give it.