Credit cards have been with us for several decades now and have evolved into sophisticated extensions of people’s purchasing ability. But are they a good thing, or do they promote spiralling debt?

Well, when used sensibly of course,
credit cards are extremely flexible additions to the wallet or purse in that they enable you to make a purchase even when you don’t have sufficient funds to cover it. As long as you budget correctly so that you can pay off most if not all of your credit card balance, then you are on top of your finances and shouldn’t have any problems.

It’s only when you start to misuse the short-term credit facility afforded by credit cards by overspending when you have no chance of paying off the balance at the end of the month, that problems occur.

In these situations, where you balance starts to increase month by month that you start to turn to the possible solution of taking on 0% Credit Cards. These allow you to make 0% balance transfers from your existing cards. This is fine while the interest remains at 0% and you have the chance to reduce your balance as much as possible.

The bottom line is if use your credit cards sensibly, they will be a positive purchasing tool in your daily life. Misuse them and you are asking for a lot of trouble.

Brought to you by Thrifty Scot

Terry Didcott
Make Money