Credit Cards

Is it Wise to Avoid Getting a Credit Card?

Many people have credit cards and more than half of credit card holders pay no fees for their credit cards at all. This means that they are getting that interest free period for absolutely nothing and taking advantage of the benefits that you can get form a credit card, such as more secure payments, not having to carry cash, insurance on purchases, cashback or anything else that their specific credit card offers. It will differ from card to card. There are some people though that refuse to have a credit card and think that they are really bad things and never want to have them because of the debt and costs of them. Whether you have one could be a very personal decision.

Whether a card is a good idea for you could very much depend on how responsible you think that you will be with it. Credit cards can be very expensive and the debt that you can accumulate can last for a very long time. It can all very much depend on how you choose to use the card.

Some people choose to take advantage of all that the cards have to offer but make sure that by paying them back before any interest is added they will never have to pay for the privilege. To do this they normally set up a direct debit so that their card is paid off in full each month when it is due. It is important to make sure that there will be enough money in the account to pay for the card and that the spending on the card has not been over excessive. Then you will know that there will be enough money to cover the cost and you will not have to worry about it. Asking for the direct debit to go out just after payday can be a great way to ensure that there is enough money to cover the payment.

However, some people are not so careful with a credit card. Some feel that the money is there for them to spend and so spend it as soon as they can, right up to their credit limit. They then only pay back the minimum each month, which often just cover the interest payments. They do not realise that every month that the debt is outstanding they are paying a high amount of interest on it. As the interest is paid in the minimum payment, it is hard to see how much you are actually being charged and easy to forget about it and how much you are actually paying for the privilege of having this loan. If you like to spend money like this then it is wise not to get a credit card particularly if you know that you will only be likely to pay back the minimum required each month.

It is also wise to consider whether you will have enough money each month to pay back what you spend. Consider how secure your job is, for example as you will need that salary to be able to have the means of paying it back. You will also need to make sure that your other bills do not go up so much that you will struggle to pay them. It is hard to predict whether this will happen but bear in mind that bills will always increase over the years and make sure that you are confident that your income will increase over those years as well. Of course, you can cancel your credit card at any time or just cut it up and so you may decide to do that if you feel that your spending is getting out of control. You have to be aware that there is a problem though and sometimes this is difficult to notice, particularly in yourself.

Whether a credit card is a good idea for you is really a very personal thing. Only you know whether you will have the self-discipline to use it wisely and make sure that you do not get into debt. You know whether you have a secure income and some savings behind you so that you can be confident that you will always be able to pay off the outstanding balance each month.

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