I wrote two articles recently that looked at two different arguments about credits:
You can imagine I received a vast array of opinions on the matter between both articles! Credit cards cause heated debates with lots of people either loving them or hating them.
Let me tell you what I really think: Credit cards are just a tool!
That’s it! They are a tool just like money is tool. They are neither good nor bad. See, it’s all in how you use them.
For many, credit cards are a useful tool that allows them instant loans for purchases; online payments; rewards points; builds up credit history; extends warranties; tracks spending; and more! Odds are these people are responsible spenders who pay off most, if not all, of their balances every month. Credit cards help them get what they need and add a few perks as well.
For others, credit cards are the bane of their finances! For these folks credit cards have high rates; exorbitant late fees; unclear terms; ruins their credit scores; creates a temptation to spend, and worse. Many of these consumers spend way too much and don’t keep a good enough track of their finances and budget. For them credit cards are horrible.
The point here is that credit cards, in of themselves, are the same for both types of users. The cards don’t really change. How one uses them changes!
In my credit card history I’ve both loved and hated them. At first they were this exciting piece of plastic that represented my financial freedom. Then that freedom led to chains of debt and resentment. Now that I’m out of credit card debt I understand that it was me all along who controlled what my credit card experience would be.
So if you hate or love credit cards, or your emotions run somewhere in between, understand that you are the master of your destiny. You control your spending decisions so it’s up to you to decide whether credit cards are a useful tool or a useless tool!
How do you feel about credit cards?