Your credit card is not a loan agency

Your credit card is not a loan agency

Even in the recession, many people are not making credit cards work for them. Instead, they end up working for the credit card. To make the best use out of your credit card, you can not treat it as a loan. You need to treat it as a bit of good luck. Let me explain further.

When you use your credit card to buy something, and you can't afford to make the payment in full at the end of a month, then you are using your credit card as if it is lending you money. And as we all know, loans do not come for free. The hefty interest rate that builds up each month can result in you paying hundreds of dollars more than what the item cost.

On the other hand, when you purchase an item and pay off your credit card in full at the end of the month, then you have had a gift. You have been able to keep the price of the item in your account, continuing to make money for you for a whole month.

So, if you really want to get out of debt, don't treat your credit card as if it was a lending agency.

Photo source MENE TEKEL

Leave a Reply