We all know that basic fundamental rules of spending money. Don’t buy something if you don’t have enough money to pay it off, and ‘Cash is King’. But it can be pretty difficult sticking to these rules, especially when credit cards are made so readily available.
Credit cards can be bad, that is true. But if you know how to properly use a credit card, then they can be great. Let’s bring in some personal experience shall we? When I turned eighteen, I wanted to get my own credit card so that I could start establishing some credit for myself, so that I would be able to buy a house and get a car further on down the line. As it is, I have to go to the doctor pretty regularly, so I have co-pays that I need to pay. Well, my line of logic was that I get a credit card, charge the co-pays, and then pay the bill off in full and ahead of time in order to bolster my credit. It was a plan that worked swimmingly. Not only did I boost up my credit rating, but I also had an extra emergency fund in case I needed something. As it turns out, I did need quite a few things that I just didn’t have enough money for at the end of paying off all of my bills. Lucky for me I had a credit card handy with which to purchase things with.
Cash and debit cards are great if you know that you have a tendency for getting into debt fairly easy. If you can’t curb your spending, then I suggest steering clear of credit cards. But if you are similar to me, then credit cards may in fact be the better route. You get to buy something now, and then pay for it a month from now. How convenient is that? You just need to be smart about your spending habits and, why not, as for a two hundred pounds limit, for example.
Credit cards can have poor side effects, just like everything else in this world. But if you are responsible with your finances, then credit cards are a safe, and more convenient alternative than cash or debit. Credit cards are especially helpful to have if you are living paycheck to paycheck. Just keep in mind that you do need to pay off the balance at the end of every month however. Failure to do so will result in you owing the company even more money.