Are Credit Cards Really Credit Or Debt?

Just remember that before you swipe, make sure that you would have enough money to pay for it when the due date comes. My beautiful blue credit card is really helpful when I need to buy something but do not have enough cash yet to pay for it. It's also a gem when we need something expensive, like a home appliance, and the store offers installment, zero-interest. I got into trouble some time back when I was happily swiping my card, buying things but not sure when I could pay for it. My credit card debt ballooned and I only have myself to blame for my financial mismanagement. I am wiser now. I hope

It really depends on your own spending and repayment habits. If you are the type of person that spends more than you earn, then at all costs avoid a credit card!!!.. If you are the type to pay off your debts at the end of the month in full, then you can really benefit from a Credit Card. Any type of credit can turn sour if you are spending more than you are earning. Best advice I can give is if you are considering putting a purchase on your credit card, make sure you have the funds available as if you had to pay it off the same day.

The only advantage of a credit card is that it lets you spend money that you don't have right now. This can be a good thing if it is paid off each month so that you don't get the monthly fees, but it is bad if you don't make your payments on time or if there is some other problem. I haven't had a credit card in over 5 years. I had so many small ones then that were all maxed out and I couldn't afford to make the payments so it really screwed up my credit badly. Now I only use prepaid cards or debit cards so that I only spend what I actually have available. If I don't have funds available then I just don't buy. Using a prepaid card, the seller doesn't know that you don't have credit because he will get his money one way or the other and you don't have to worry about getting a bill. It is far safer for people who have limited income and it should keep you from digging yourself in deeper and deeper.

What a whole lot of good advices coming through. Your whole discussion has earned you my putting it in my favourite tab under the folder 'saving money'. My take on your problem is spending which is my problem also. After I have spend too much I try to curb it by not going to places where my favourite things, clothes, bags and shoes, dwell. Another method I will try is to pull myslef off from looking at the item. Its funny that at that time when you absolutely sure that you need the item does go away when you are away from the item. Try it!! I have credit cards applied by my husband but in about ten years I have used it 3 times. I much prefered my debit card. With your wise respondees I see the need of using cash. I think we need to change the mindsets of people to regard the debit card more pretigious than credit cards. Afterall for debit cards you are for real having the money to pay for the things you buy.

Everytime you use your credit card , you are bound to pay them, lest it will earn a lot of interest and pile up until they will harass you to pay them all.

I believe credit cards are a downfall to our economy. People use them unwisely. Thus putting theirselves in debt. I think that people don't think about the interest, how quickly the balance grows and how they are going to pay the bill. Paying the minimum balance gets you no where. I think as a whole we need to get rid of credit cards and rely only on debit cards and/or cash. If we did this, the only money we could spend is what we have. Thus getting us out of debt. Best Wishes!

My father always told me to avoid having credit card debt by paying the bill in full every month. Also, you avoid building up interest that way. If someone is unable to pay for their basic needs and they really can't pay for it every month, it will only make them worse because of the interest. But if you can afford to have one, it is better than carrying around a big wad of cash. If it is lost or stolen it can be frozen. I really like having a debit card, that is all I have because I am a teenager. No cash to carry, but I don't have to worry too much as long as I have the money in my account.

Thats simple, A credit card is borrowed money, your borrowing money from an Evil bank that then charges you for using the money, the institution you used the card at for allowing you to use the card. SO when you swipe the card you just wrack up Debt, it maybe for a month, it maybe forever. but debt is debt. A debit card is a much better solution, however you maybe just spending the money you have in your checking account, the instition you used the debit card at still has to pay your issuer for allowing you to swipe the card, Congress just passed legislation to limit this to .25 a swipe, but thats sill .25 they pay vs the .75 it can be or more now. Do you think the companies dont find a way to pass that cost on to you, think again. If you use a debit card to buy a bottle of Mt Dew at a gass station, they loose .25 - .75 cents right off the top, that bottle of Mt Dew willslowlt start to rise in cost. NOW, that the government has stepped into regulate what banks can charge per swipe they claim they are loosing money and will have to start charging more for other services, like no more free checking accounts.... Use cash, its simple and your money ill go a lot farther for all of us.