Let’s talk about credit cards! Let’s talk about the pros and cons of credit cards and how I personally feel about credit cards.
Credit Cards Pros and Cons
Credit cards are a very tricky topic because they are such a dangerous tool. They are dangerous but they are also a tool. There are pros and cons to credit cards.
My thoughts on credit cards have evolved slightly especially recently and I will explain why.
Credit cards are basically a quick loan. You can borrow money, from a creditor at a very high interest rate for anything you want. Anything you need to buy, you can borrow the money for. You don’t need to justify to anyone your purchase or even prove that you can eventually pay it back.
Credit cards are so quick and easy- it’s extremely easy to forget that you are even spending money. Many, many people spend too much on credit cards- buying things that they don’t need with money they don’t have. This can, and does, easily spiral into people owing huge amounts of money with little or no assets to show for it. At least when you borrow a million dollars for a house than you have the house at the end of it! With credit cards, you can spend tons of money on nothing and have nothing to show for it except for mountains of debt.
Terrible, right?
Well…. sort of. Borrowing money on a credit card is a pretty bad idea. Borrowing money on the credit card to buy stupid stuff is stupid. That doesn’t mean that you can’t ever use a credit card. Using a credit card to buy things you need and can afford? That may be a good idea.
Credit cards are a great tool to help you take control of your finances and to help keep your finances simple (simple is the name of the game over here)
Here are some great perks of credit cards:
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