In today's uncertain economic climate, many people find themselves challenged to make ends meet. Bills keep accumulating, the cost of goods keeps rising, and it seems almost impossible for many people to keep their bank accounts in the black. However, when it comes time to make that one must have purchase, these same struggling individuals find it easy to reach into their pocket or purse and pull out the magical piece of plastic that we all know and love - the credit card.
Truly, credit cards seem like magic. You just pull it out, hand it to the cashier, and off you go with your brand new purchase. No money leaves your bank account, and in fact, you can spend money that you do not actually even have (hence the term credit). The question for most people, however, is should they make the purchase on the credit card to start with, and takes several mental steps to answer properly.
First and foremost, people should ask themselves whether or not they truly need an item, or if they merely have an urge to have it right then and there. If it is not something that you truly need at that moment, then likely you are better to wait until you have the cash to pay for the item. If it something you need, or something that you desperately feel that you must have, then you must ask yourself the next question, "Can I afford it?"
The "Can I afford it?" question is not so much about whether you have the money in the bank to pay it then, but whether you can afford to pay for the item by the time your next credit card payment is due. If you are just short a little dough at the time, and feel confident about being able to pay your credit card bill in full, then you can go ahead and use the card without worry.
The problem for most people is that they use one or more cards without considering actually paying off the item in full within a certain timeframe, but instead consider whether or not they can make the minimum payment on time for that particular card. After they start doing this with multiple cards, their debt accumulates, and the credit cards' high interest rates trap them in ever-accumulating debt.
Play it smart, and only buy items that you can afford in the near future. Using a credit card is not a problem in and of itself, but can lead you into much bigger problems if used improperly. Purchase what you can afford, and live within your means, and you will be able to avoid many problems.
Truly, credit cards seem like magic. You just pull it out, hand it to the cashier, and off you go with your brand new purchase. No money leaves your bank account, and in fact, you can spend money that you do not actually even have (hence the term credit). The question for most people, however, is should they make the purchase on the credit card to start with, and takes several mental steps to answer properly.
First and foremost, people should ask themselves whether or not they truly need an item, or if they merely have an urge to have it right then and there. If it is not something that you truly need at that moment, then likely you are better to wait until you have the cash to pay for the item. If it something you need, or something that you desperately feel that you must have, then you must ask yourself the next question, "Can I afford it?"
The "Can I afford it?" question is not so much about whether you have the money in the bank to pay it then, but whether you can afford to pay for the item by the time your next credit card payment is due. If you are just short a little dough at the time, and feel confident about being able to pay your credit card bill in full, then you can go ahead and use the card without worry.
The problem for most people is that they use one or more cards without considering actually paying off the item in full within a certain timeframe, but instead consider whether or not they can make the minimum payment on time for that particular card. After they start doing this with multiple cards, their debt accumulates, and the credit cards' high interest rates trap them in ever-accumulating debt.
Play it smart, and only buy items that you can afford in the near future. Using a credit card is not a problem in and of itself, but can lead you into much bigger problems if used improperly. Purchase what you can afford, and live within your means, and you will be able to avoid many problems.
