Credit Cards: Heavenly Or Hellish?

| August 30, 2017 | 0 Comments

Those tiny little rectangles of laminated and slightly flexible plastic that you carry around with you in your wallet make it so easy to pop into a store and purchase whatever your heart desires. Credit has become more readily available to the masses allowing people to frolic in the bliss of financial freedom. It has also caused untold hardship and pain for those who have spiraled into debt and financial turmoil because of credit cards.

Our lives seem to revolve around credit nowadays, as demonstrated on investopedia.com which lists the numerous reasons why people choose to utilize credit. Used wisely and credit cards can be a tool for financial good, but squandered and credit cards become nothing but a thorn in the side of many.

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Ease Of Credit

How many times do you receive mail from your bank that states that you’ve been pre-approved for a credit card that would give you thousands of pounds worth of credit? No application needed, just pure, unadulterated credit at your fingertips that you never even asked for. Depending on the individual this is offered to, this could be the initial foray into bankruptcy. What banks don’t realize is that they could be sending this letter to a person who has an issue with gambling or someone with a highly compulsive personality. A credit card in the hands of these individuals could result n a dangerous financial situation. Banks don’t vet who they send these pre-approved credit card notices to and nor do they show signs of wanting to do so as they are keen to secure as many borrowers as they can.

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The Ideal Situation

The perfect use of a credit card would be to have one in your back pocket for a rainy day or those larger purchases that require a little more security. If you purchase your new car using a credit card, it’s wise to pay the balance off as soon as possible to avoid hefty interest charges. Credit cards shouldn’t be used as if the money is your own, only for you to fall into the minimum repayment trap and see your debt shift so slowly that it can become demoralizing.

It is even worse if repayments begin to be missed because you have utilized too much credit and find yourself in a never-ending destructive cycle of taking out card after card to pay off the debt from the previous one. Your resulting poor credit rating will negatively affect your ability to buy a new car, remortgage your property and apply for future financial help. If you find yourself in this situation, check out creditrepair.company who list a variety of credit repair companies who can locate your credit report and go about improving it by removing the things that contribute to a negative score. If you look into this alongside a commitment to taking out no further credit and paying off what you already owe, you can see your financial health come back from the brink.

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Conclusion

Credit cards can be hellish pieces of plastic that are the catalyst for debt ridden families and bankrupt individuals. Used correctly and paid off in full every month, they can enable people to build up strong credit scores and teach sound financial habits. As with most things, it may be the individuals, not the tools who are to blame for their misuse. Credit cards and their usage need to be a topic of education for the youth of today to enable them to manage their finances more effectively.

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