Sunday, November 11, 2007

Credit Cards

Nowadays credit cards usage has become very common around the world. To me having a credit card makes my shopping experience more convenient because I don't have to carry la lot of cash with me and I can also earn reward points when I pay by credit cards.

However, many people have misused their credit cards whereby they'd over spent their budget. They tend to buy things that are not necessary or they can't afford, because with the credit facilities, they only have to pay the minimum every month. With the attractive balance transfer plans offered by many credit card companies, some would apply a 0% credit cards in order to "pay up" the debt they are owing on another card, and when this new card is approaching the credit limit, they'll do the same again and hence in the end, it has formed a bad debt cycle which may lead them to bankruptcy.

Therefore we all have to be wise and careful in spending with our credit cards so that we can avoid being having bad debts.