Be careful (Credit Cards in general)

Member Name: Planet1

Product:	Credit Cards in general
Date:	16/08/08 (56 review reads)
Rating:

Advantages: Buy on credit

Disadvantages: Be careful

Credit card can be a very good thing, but they can also lead people to financial misery.

A credit card is a plastic thing with a magnetic band on it and allows the owner to purchase goods on credit. Normally the card holder will have a so called "credit limit" which is how much he/she can spend every month.

At the end of the month, a statement will be sent, the card owner will ahve to pay at least the 5% of the debt, unless differently agreed.

If you pay in full, no charges will be made, unless your card carries an agreed monthy or yearly fee. If you do not pay, an interest charge will be levied, and this is never cheap.

It is at this point that things can turn nasty, because each month you will be charged an interest and many people think that they can repay their debt and then they cannot and the debt grows because fo the charges.

Also, because many people have more than one card, some end up having huge debts.

My advice is that you should think before buying goods on your card, otherwise you may have problems.

Summary: Buy on credit but be careful