Friday, March 22, 2013, AM | 5 Comments
Come a way of life for some people – especially as the economy has floundered over the last half a decade at least. The sad fact is credit cards may seem like a good idea at the time, but in the long run can potentially damage a person’s financial history for years and years afterwards.
There are many predatory credit card lenders out there who just wait for a person to open an account, spend more money than they can afford, and then watch the debt pile up due to high interest rates and other charges.
In the end, a credit card is just not the right option for some people. It is true: some people should just not have credit cards. In fact, it is very possible that most people should not have credit cards.
There is a way to live a happy life without the use of credit, and when the economy is like this, maybe that is the right road to go down. So here are some reasons why you should not use credit cards:
You Will Spend More
There is no doubt about this simple fact: using a credit card means you are spending more than you would be otherwise. Often, the best choice is to only purchase something when you can afford it, and to not use a credit card in order to make that purchase.
In the end, it is about living smartly, and in most cases spending and making large purchases with a credit card is not the way to go about it. In the long run, you will be very surprised to see how much unnecessary expenditures were the result of things like surcharge fees, late payments fees and interest charges.
The Psychological Factor
Many scientific studies have proven that people are much more likely to spend money when they have a credit card rather than cash. This is because a credit card does not have a monetary, physical value attached to it.
Thus, credit cards encourage people to make bad decisions when it comes to spending money, and those bad decisions are a huge reason why people should not use a credit card for the most part.
You Can’t Win
In the end, credit card companies always win out. There is not much you can do to complain about predatory fees and interest rates and there is not much consumer protection after you have signed on the dotted line.
Credit card companies will always win and there is really not much you can do about that unless you stop using credit cards altogether.
Billy is a freelance writer for a host of financial web sites, real estate blogs, community newspapers and magazines throughout the country of Canada. There are many mistakes people make when using credit cards and must people have no idea what their credit worthiness is.
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