wahlau's online hut

are you always troubled with your decisions on your credit card(s)? you love the idea of credit card, but at the same time you hate it? perhaps you can read on...

since a few years ago i have continuously been reading on people writing about pro and cons of a credit card. And many of them have actually got "bitten" by the small plastic card one way or the other before. Worst of all, people who have 2 cards or more, and constantly transfering from one to the other and pay only interests. Clever it may seemed, since you can play around with more cash than you have, but i believe it is a pretty tiring task to keep track of your current credit status, and if, if you really don have the money to repay, you might even have some worries that you might one day get into trouble.

The concept of credit card is perhaps easy -  you get to pay for something, perhaps securely, without actually forking out that amount of money at the time of payment. At the end of your monthly balance period, you will have a certain time frame to pay up. If you choose not to pay all of the used credit, you will need to pay certain amount of interest. most of the time, it should be about up to few percents of the total sum you owe. I believe this is the reason why many don't think the interest is high - it looks small when charged/calculated monthly. When you need your cash in a certain month for something else more urgent, this kind of convenience is definitely appreciated. 

However, i believe every credit card owner should also understand this - if you don't have the money, you just don't have it. in other words, never believe in the illusion of having the extra cash, since the credit card company provides you that. What i write here might oppose the philosophy of credit card, but i do think this is exactly the reason how some can get into trouble. My own experience with cards is pretty positive, and i treat the card as if it is a debit card - i only use when i have the cash with me somewhere. There are times when i use it before the cash was really there, but i spend it because it was necessary (like buying air ticket home) and i know i will have the cash long before my payment due. So far, credit card is a good friend of mine, since it help me in managing my finance better. Remember the key - planning comes first, not spending. If you cannot afford something (especially when you don't really need that something) why not just don't buy it. :) You don't have to buy just because you can, or you can since you have the money from the bank!

If you care about your finances, you should take some time to think about your expenditure habits and understanding on credit card usage. Google about it and you might find useful information. There are definitely some websites out there on credit card usage where you can compare and read to learn to make better judgement. For example some even present you some comparison between different offers (such as "0% balance transfers" or "0% credit cards" in this example credit card site), and you should really take time to judge and understand what is really being presented being you say "i do" :)

At the end of the day, i must say credit cards are really for mature people who know exactly how he can manage his finances. Don't get overwhelmed though, if you get your first credit card today (it is not really difficult to get one now, i think, seeing so many stands in shopping complexes with free gifts and "Mister, do you have a *** credit card?"). Plan, think, think again, then spend. Nothing should go wrong. 

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