Posts Tagged debt

Credit Card Debt Can Put Your Life On Hold

May 23rd, 2009

debt11Dealing with debt is a hard and stressful activity.  In fact, it’s one of the toughest things most anyone can go through, regardless of how intelligent or how talented they may be.  It is so difficult, that at times, people working through it can feel that they’re putting their life on hold.

Cutting Back

When you’re paying off debt, you’ll need to cut back on most everything.  Those three beers at the bar after work may have been peanuts last year, but when you’re settling arrears, even the smallest savings can accumulate into building up that monthly payment.  As such, it is more important than ever to prioritize where your money goes.

Cutting back, however, does not mean deprivation, although it can feel that way.  Instead of that quarterly family vacation you used to take south of the border, how about substituting weekend day trips to see local attractions instead.  Sure, it’s not the same, but that’s the beauty of life – it can be enjoyed even with the most meager means.

Enjoying Life Without Money

One of the reasons you likely ended up in debt is that you thought you needed plenty of money to enjoy life.  In fact, there are many more facets to living than the things money can buy.  Look at the time when you’re settling your debt as a chance to begin appreciating them.

Living With Pressure

The most profound effect of living in debt is the constant pressure.  One slip-up in monthly payment, after all, and your restructured debt plan just might get thrown out the window.   However, those are the cards you’ve been dealt with – accept the situation and make the best of it.  In truth, many people have been in worse boats than you, yet have continued to live happy lives.

Credit Cards Are Not For Debt

May 9th, 2009

debt0An increasing number of people are now trying to make do without credit cards.  Since credit cards seem to be responsible for a lot of the mess consumers are in now, they’re probably evil, right?

Wrong.

While you can use credit cards for incurring debt, it’s hardly the prescribed way to use it.  Debt is like a grave you dug for yourself.  Even when you have no intentions of jumping in, it’s so easy to slip and end up at the bottom.

Credit cards, if you employ them responsibly, are a terrific convenience, allowing you to carry out transactions without having to carry a stash of bills, earn bonus gifts and plenty of other perks.  As long as you live within your means, credit cards aren’t a bane – they’re a tool that makes life easier.

Once you get your mind around to the idea that credit cards are a good way of incurring debt, for whatever purpose, that’s when things take a drastic turn.  Debt, especially when taken out for expenses that won’t net you anything (the way a business credit will do), becomes a mere burden.  You’re essentially exchanging your future income for today’s convenience – not the most intelligent thing to spend your financial ability on.

As long as you can avoid using credit cards for debt, you should be able to make your way through life – even with a dozen credit cards in tow – relatively free from financial shackles.  If you chose your accounts wisely, you might even be enjoying a few perks along the way.

noel Posted in Credit Card Guides

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Why Do I Need A Credit Card Anyway?

December 22nd, 2008

With so many people drowning in credit card debt, it’s easy to make an argument why you shouldn’t get one. However, they offer too much in terms of convenience and utility that not getting a credit card can prove more disadvantageous in the long run.

Credit cards are possibly the most convenient form of payment available that is accepted almost anywhere in the world. All you have to do is hand it over to the store attendant, sign your signature a couple of times and you’ll be fine. Online, all you have to do is type in your credit card’s details and the sales process is done – no fiddling with your bank account, no mailing checks and no getting money orders necessary.

You can travel to most urban (and some rural too) areas in the world and use your credit card with no problem. If you’re short on local currency, you can head on over to the nearest ATM and get a cash advance within seconds.

Even more reason to get a credit card – some services won’t deal with you without one. When you’re getting a car rental during holidays, for instance, you’ll be required to give your credit card details as insurance in case the hired vehicle gets damaged. Without one, few rental companies, if any, will serve you.

A credit card is also one of the first lines of credit you can get when you’re looking to build up your credit record. That, on its own, may be a relevant-enough reason to get one.