I really, really want that designer handbag but I can’t afford it.Oh don’t worry I will just stick it on the credit card. That is the thought process that has started a lot of pain over the last few years.
There are two sides to every story and while I think the companies do have some crazy rules and charges there are also things that they are not guilty of
Using credit to buy items only makes sense if the item is going to be useful to you for longer than it takes to pay it off. Taking a year to pay back a credit card bill that was used to buy something you only used for a week doesn’t make much sense. The item which may have seemed like a bargain but once you work out what it actually cost you in interest on top of the original purchase price it really isn’t a bargain at all.
So what can be done, if you are in trouble already with your credit cards then start attacking the problem from all angles.Don’t put your head in the sand and hope they will miss you, they won’t. Contact the company and see if they can give you a break on the bill. Start selling things off on ebay or at yard sales, get a second job. Do anything you can to increase your income.
While I don’t think credit card companies are in business for your benefit they also don’t force you to buy things which usually you can live without. Before you use the credit card think about how much that $100 purchase will cost you if you don’t pay it back when you get the first bill in.
Think about credit as a tool in your arsenal, it allows you to play with someone elses money but you are only borrowing it you still have to pay it back and of course they want interest for the loan. Like any tool use it wisely and it will help you for years to come, but if you abuse it then it is sure to come and bite back
Wondering about Credit Cards for small business can make you nuts. There is so much data out there that finding out which are the best business credit cards for your company can be practically impossible without some help.