Credit Card Debt Home Truths

Many people claim that using credit cards has its upsides - such as promotional deals included with the card, rebates and airlines' frequent flyer miles. With all these included, they tell you that you can even save more money by using your credit card!

Unfortunately, through my own learning the hard way, I can tell you that there are no positives in using credit cards. None at all! In fact, with all these in mind (specials, rebates etc) your mind will tell you to spend more, because you are saving! Credit card companies and friends will also tell you that as long as you pay on time, it never hurts to use the cards. It would be like free money!

But most people will not pay on time. They end up accumulating the credit card debt, and in due time, are paying off the interests for countless years. That is what's happening to me now.

Why Do You Spend More With Credit Cards?

When using cash, the pain of parting with the money is evident. However, with credit cards, you never see the money. All you need is a swipe of the credit card and your simple signature - and you get that designer bag easily or even a car all 'paid up'! You do not get emotionally attached to the idea of parting with any cash!

Unfortunately one of the worst situations that could result from credit card usage is the debt that one accumulates by using the credit cards as a form of business loan. I cannot imagine how many people's lives have been destroyed from that practise alone.

I have learnt that personal finance is 80% behaviour. You have to learn to be prudent in your spending, and not rely on extended loans. There is just no way you can get free money and eat it too.