Credit Card

Credit Card

A credit card is nice to have. In fact, having at least one credit card is almost a necessity in today's world. Just don't let it get you into trouble.

With Freedom Comes Responsibility

You've heard the phrase, "With freedom comes responsibility." That's never been more true than it is when you have a credit card. After all, credit cards give you a lot of purchasing power, and the freedom to spend far more than you actually have. And there's temptation to get great stuff everywhere. But it seems to get the really great stuff (like HDTVs, furniture, appliances, etc.) you have to buy on credit. And they make it sound so attractive: "No payments until 2008!" "90 days same as cash!" and other such catch phrases reel you in. And then there are the other things--clothes, iPods, cosmetics, CDs, video games...the list is endless. Do you really need all that stuff, or do you just buy it because you want it and some random credit card company apparently thinks you can afford it? (After all, they gave you a $10,000 limit!)

Being responsible with your credit card means you don't charge up $10,000 in credit card debts. Being responsible means you only use your credit card for emergencies or if you use it for other things, you pay it off in full at the end of each month. (Now, be honest--can you afford to pay off $10,000 in full each month?) Okay, maybe someone charging up $10,000 in credit card debt in one month is a stretch, but you get what we're saying. You want to stay out of credit card debt altogether because it carries some of the highest interest rates around. If you don't pay it off in full each month, the interest will eat you alive, and it will seemingly take you forever to get out of debt.

Bottom line? Be good to your credit and it will be good to you.

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