As a blogger, I receive quite a number of messages from random readers who would tell me things that they are not comfortable with posting as comments. One thing I noticed writing about credit card and the abuse of it, is that there are quite a number of people who have years and years of outstanding credit card debt. It's not something that could be settled within a year. The snowballing of interest upon credit card balance could be staggering.
Well, of course, if the debtor strikes a lottery and settles the debt in one lump sum, his credit card debt problem will be solved but most of these people are making just enough to get through the month, some even do not earn enough to cover their monthly expenses, hence they have to take out cash advance from their credit card(s).
Although there are a third of credit card users who are responsible in using their cards and settling their balance in full every month, I have to admit that it is really tempting to overspend, using money that we do not yet have on hand. Should an emergency crop up or should we lose our job, that's when our financial balance is thrown into havoc.
My philosophy in using my credit card is that I would only charge it as long as I have the money in my bank account to pay for it when the bill comes. This means that I could pay cash if I wanted to but then I would not be able to enjoy the bank interest or the loyalty points.
Well, of course, if the debtor strikes a lottery and settles the debt in one lump sum, his credit card debt problem will be solved but most of these people are making just enough to get through the month, some even do not earn enough to cover their monthly expenses, hence they have to take out cash advance from their credit card(s).
Although there are a third of credit card users who are responsible in using their cards and settling their balance in full every month, I have to admit that it is really tempting to overspend, using money that we do not yet have on hand. Should an emergency crop up or should we lose our job, that's when our financial balance is thrown into havoc.
My philosophy in using my credit card is that I would only charge it as long as I have the money in my bank account to pay for it when the bill comes. This means that I could pay cash if I wanted to but then I would not be able to enjoy the bank interest or the loyalty points.
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