Credit cards
I used to think managing credit cards are very simple until I had my own. I have seen lots of credit card companies setting up tables in the malls, college campuses etc. Despite having huge student loans, students still opt to have a credit card and incure more loans. God only know why? According to a study conducted by the U.S. Public Interest Research Group (PIRG), students who obtain credit cards at campus tables have higher unpaid balances than those who do not. Of the 79 percent of surveyed students who use credit cards for multiple purposes, only 13 percent reported limiting credit card use to emergencies. Incidentally my husband is a student and we fall under the remaining 66 percent.
Off late I have realized that credit cards can be helpful only in case of emergencies and if you are able to pay off the balance each month. I mean the balance and not the minimum balance. My husband and I would have done justice to his summer internship salary if we did not have a credit card. Our recreation expenses wouldn't have been $200 every week if we did not have the credit card. We have been trying to pay off our credit card bill for last two months, but we are still on the same place where we were 2 months back. Its tough to believe that we spend so much.
Does every one who have credit card have the same problem or is it just me?
Off late I have realized that credit cards can be helpful only in case of emergencies and if you are able to pay off the balance each month. I mean the balance and not the minimum balance. My husband and I would have done justice to his summer internship salary if we did not have a credit card. Our recreation expenses wouldn't have been $200 every week if we did not have the credit card. We have been trying to pay off our credit card bill for last two months, but we are still on the same place where we were 2 months back. Its tough to believe that we spend so much.
Does every one who have credit card have the same problem or is it just me?
posted by Yadayada @ 9:24 AM
14 Comments:
It is not wise to borrow and rollover on credit cards. the best thing to do is to pay off every month. from the bank's perspective, this is treated as unsecured credit and that explains the ridiculously high interest rates charged by them.
ya, these cards make us spendthrifts. a heavy pinch for few months will automatically teach us to be more wise if not tightfisted. so do not bother and enjoy, till u really feel the pinch :)
Kaps
Very true. We have been paying around 14% interest on our credit. Gosh...thats a lot of money! :-(
fieryblaster
I have already felt the pinch and I hope it makes me more wise than being just kanjam :-)
Just use cash. We ended up saving money.Cancel all cards except one.
Dont even remind me of these goddam credit card bills..guess they are the biggest reason for debts..coz one doesnt realise how much one is spending when it comes to credit cards and hence we always go overbudget!
Almost all credit cards let you manage your account online these days, so I would say check your account regularly without waiting for a statement. That way you know how much you have already spent and can spend - spend within your monthly budget and try to pay off the credit card as soon as you can.
For some reason I have never been fond of credit cards..one reason is probably that I am very lazy is paying bills..I always forget abt them and hence rarely use one! But yeah they do tend to lead u into a viscous cycle.
Shiloh
We have only one card. May be we should cancel that too.
Anand
Join the boat :-)
Arvind
Guess what...I check my credit card account online almost every day :-) It would be even bad if I dont do that.
Ekta
You seem to have lots of gud habbits. You have to change a lot :-)
:-( 14 % APR ? Thats too much money.Just look around if you can get a CC for lesser rates.For students,starters , DCU is a best bet ! (Desi's credit union..LOL)
Adengappa
thanks for the link.
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