Credit Cards: convenience or debt trap?

Credit cards – a convenient option aren’t they? Your personal safety net when you need the dough but don’t have it. Do you feel that credit cards make life easier for you? In reality you could end up in heavy debt if you aren’t careful with your credit card. Expensive, impulsive purchases by swiping your credit card – is it worth it? Do you end up living beyond your means because you bank on your credit card?


Nearly everyone today owns a plastic. Many have several in their wallets. After all, it frees you from carrying large amounts of cash while shopping and lets you shop online too! But is there a dark side to plastic money? Yes, there is and you could end up being an unsuspecting victim if you don’t practice caution while using your credit card. You could run up bad debts that could cast a shadow over your finances for a long time.
When not to use your credit card
While using credit cards we tend to underestimate what we spend. For instance when you use your credit card while shopping at the supermarket, money is taken from your card. The money in your wallet doesn’t reduce so you don’t really realize your expense! Small amounts will add up quickly this way and you could end up in debt.

Don’t use your credit card to pay your utility bills
If you use your card because you can’t afford your bills, you need to re-assess your personal budget plans.

Never use your credit card for impulsive purchases
Your spontaneous shopping spree is one of the worst times to use your credit card. If you want to treat yourself to a surprise, go ahead but remember that your surprise might cost you more with the interest you’ll have to pay with your credit card.

Avoid using your credit card while buying gifts
Make sure that you buy gifts with cash/debit cards. You don’t want to borrow and pay heavy interest for things you’re going to give away do you?

Do you feel that one ends up living beyond means while using credit cards? Do you prefer cash equivalents like debit cards? How can you stay in control while using credit cards? Share your helpful tips with us.

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