How credit cards can ruin your life
Credit cards can ruin your life in one of two ways. Either you can be coaxed into habitually spending above your means and using credit to support this or you can use a credit card with an insecure financial situation and accidentally acquire charges which you can’t pay off. In either situation once you start having to let balances carry over without paying them off, you are on the slippery slope of credit.
Borrowing money or spending it before it is earned is a weighty decision. This course of action should only be taken when the item being purchased is indispensably important and you are sure that you can get your hands on funds at a later date.
Credit cards encourage people to use borrowing as an everyday way to stretch what they’re getting out of life. Easy access credit encourages people to think in terms of what they can get and how soon they can get it rather than what they can afford and whether they really need it.
A credit card can be a useful and convenient way to pay for things. As long as a card is only ever used in this way it does no damage. It’s the fact that it can be used to borrow so easily that makes it dangerous. Unless someone has solid finances and a solid financial attitude the pathway to ruin is always open.
Most credit card owners will forget about purchases they have made once in a while and get a bigger bill than they expected. If the person has a good cushion of disposable finances in their bank account at all times then these oversights are not important. Someone who is just scraping by might have to decide to leave some items unpaid for. When the interest is added onto these purchases each month the value of the items slips out of all proportion.
If a card is allowed to accumulate a lot of credit on it then the debt can acquire a momentum of its own and steadily snowball out of all control.
If someone has less than economical spending habits and insecure finances and is then saddled with monthly charges and rates as well they start getting backed into a corner. At some point no more credit will be available to the person. They may lose their home, if there is no money to pay for transportation they may lose their job and they will face the continual harassment of creditors and collection agencies. The more desperate a situation gets the less impact any positive actions taken will have.
If someone is not in possession of the ability to live within their means and a good financial cushion to absorb errors then they should not acquire a credit card. If they do they put their future at extremely high risk.
Learning to live within your means and putting money aside to cover unforeseen circumstances can be achieved by anyone willing to make some changes and put some effort in. Once you get to this stage you can safely use a credit card as a payment tool but always be aware of the dangers of casual borrowing.
Credit cards must be used to pay with and not to borrow with. If due to your circumstances, self control or both you cannot stick to this kind of usage then it’s best to avoid credit cards altogether and work on your financial attitude and situation. Once you have got this under control you may reconsider a credit card.
Casual borrowing has become accepted by many people as a way of life, but as the recent recession has demonstrated, it is a dangerous way to live and eventually it can catch up with you in the most damaging and distressing way. Don’t sacrifice your future for the ease of extra spending today. Recognize big financial decisions as being important even if they are presented to you in a common place and easy to use package.