Paradise

Credit card, some people think that it is the greatest inventions; some people think that it is a evil thing. So what make credit card so special that people are having love hate feelings toward it?












Well, as simple as ABC, Credit card is a plastic card that is designed to be elegant and high-class look-like card. Its special and charming function is to help people to pay for card holders' desire things and services, by actually loan to them. Once card older had sweep it to make a payment, interest will be charge and total accumulated interest and payments will be printed in a nice and tidy statement that guarantee deliver to your doorsteps every month. That is the time people start wondering and consistently asking themselves whether you really spend that much? Whether they have bought these expensive clothes? Whether you had dine in those fancy and expensive restaurants?




A man dressed as an ancient Chinese official (L) drags a credit card "slave", or a consumers in credit card debt, as they take part in a demonstration calling for the government to pass a law to help people owing money to banks, 02 June 2007, in Taipei.




Undoubtedly, credit card had bring a lot of joy, fun and convenience for us. Especially for this modern and speed demanding era. It is very useful that people can buy many things without carry many stacks of money. It gives people conveniences to shop easily and faster. People use it to pump gas, do online bookings buy clothes etc... You enjoy the moment of sweep that card at counters, you feel proud when you showing off people your unlimited credit platinum credit card ... as a consequence, and you bear mountains of debt every months. Credit is the promising to spend future earnings in order to obtain a good or service today. That is why people named it as credit card. It is fun when you can afford (virtually) to buy any things as you like, people always experience a situation like "spend today and worry tomorrow". While in fact they do not have so many savings to cover the debts. If they could not clear the debts bank will charge interest from time to time and debts can go even higher.


Nowadays, many banks are competing within themselves to offer their credit card services to the public. In order to grab people's attention, they doing many promotions, brainwashing people with many sweet talks and tempt them with good offers, such as point exchange, travel package and hotel...etc. Many people falls in their trap, hence sign many cards. People are carrying more than one credit card. So, if they went to shop and either one of their card has reach the limit and they already queuing in front of many people, they will try others card to buy that particular things to avoid being disgraced. While they actually realize that they are having serious problems ahead.


Credit card basically can destroys money management. Why it is so? During this financial crisis time, many merchandisers are offer cash rebate to encourage shoppers to buy more. Though some of the cash rebates only need a very low limit but imagines if consumers buy all the unnecessary things just to get the little amount of cash rebates, it could be a bubble. As a consequence of tempted to the cash rebates card holders did’t realise that they are actually spending over their budget. Worse thing is they usually realize it after payments made.


For those who having debts or going to own a credit card soon, here is a few tips that i hope can help you:
1. Plan what you really need to buy and not what you want to buy. Do some calculations that roughly how much you require to purchase the things. Bring enough cash with you just to buy, eat and for transport.
2. Do walk away and reject those handsome or pretty sales persons that come to approach you. Remember you enjoy now, you suffer in future. Bear in mind that credit card is sucking your future money.
3. Probably we should switch back to pay by cash. By doing this way, you can count and remember how much that you spend and how much that you left for savings.
4. If you really need a credit card so much, i suggest that you should just limit your credit limit to the lowest, hmmm...maybe one thousand in a month? Or choose debit card instead, it functions exactly like your credit card but the only differences is you spend what you have. Therefore you won't carry debts.
5. Lastly if you are carrying many credit cards it is time for you to choose which one offers the best and worthy interest rate and terminate all those others.