Only muppets pay interest (Credit Cards in general)

Member Name: sympatic

Product:	Credit Cards in general
Date:	30/12/08 (80 review reads)
Rating:

Advantages: Cashless shopping and rewards

Disadvantages: Interest rates are high

There are a wide variety of credit cards available and it is cerrtianly wrong to believe that they are all the same. For me credit cards are a tool to be used but in no way would I ever consider borrowing on one. This is because the interest rate can be really high.

I always clear my monthly balance in full and I use one that gives me rewards for using the card on purchases. I have nver been unable to understand why people allow themselves to get into debt on credit cards, my rule has always been to only spend money that I have in the bank and if I want something then I save for it rather than putting it on a credit card.

The biggest con with credit cards is the minimum repayment scam, any one who falls for this and only makes the minimum payment each month needs their head looking at, this is because the minimum repayment is often a % of the balance and as such only making that payment each month will hardly reduce the balance owed as another load of interest is added each month. It can ttake years to repay a debt using that particular method even when the amount on the card is not that great.

Cards do have some benefits, I pay for large purchases with my card and holidays as then if the company went bust you may be able to claim back off the credit card company so you get some protection.

My advice is to only have one card and to pay the balance off each month by only spending money you have in the bank.

Summary: Credit cards