Duh! As a personal finance blogger, I keep reading article upon article about credit card complaints. How credit cards help promote irresponsible spending and how outrageous the interest rates are.
What did you expect?
Did you think that credit card companies will offer interest free loans to all who want to take advantage? Let’s face it. All corporations are out to make money. They offer a product for the masses in order to increase profit. If it’s unprofitable, the company is not executing properly.
Applying for credit cards is the same as applying for a job. Once you are accepted, it’s up to you to comply with the terms and get as much benefit out of it as you can. In the meantime, the company (credit card or the employer) will try to take advantage of you too. It’s only fair and that’s just how the world works. At any point, you can choose to quit (or cancel your card).
You are under no obligations to stick with any credit card company. If you owe the company money and are unable to pay it off, then it’s only fair that they reduce your credit limit so you can’t lend anymore. That’s SUPPOSED to happen.
Credit cards are definitely evil but knives are sharp! We all know how useful knives are. For those that are being screwed by credit cards, just learn how to take advantage of them just as you learned to use knives.
Start by:
- Paying off your balance in full
- Only use your credit card when you have cash on hand
- Take advantage of rewards because it’s free money
For every person that believes he/she is being screwed by credit cards, there’s another who is taking advantage of the free money (free short term loan as well as rewards).
If you get cut by using a knife, you wouldn’t blame your knife right?
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{ 7 comments… read them below or add one }
“If you get cut by using a knife, you wouldn’t blame your knife right?”
You know, I think anyone who complains about their own credit card debt as if they didn’t have anything to do with it, probably would blame the knife.
Yup, I take full responsiblity for my credit card debt. I’ve aggressively paid it down and will be debt free in four months. However, I’m going populist here:
I have every right to be an angry taxpayer when these corporations are not profitable and screw up their balance sheet badly that we have to give them billions to stay afloat.
I have every right to be an angry shareholder when despite these bailouts, my shares become virtually worthless.
I have every right to be an angry customer when despite good credit, pay on time for five years, they raise my interest rate despite the Federal Reserve rate is near zero.
Sure these corporations can be profitable. Especially if they get to my wallet any way they can.
I’ve been getting a little tired of hearing complaints about how evil credit cards and/or credit card companies are, too. The credit card holder is 100% in control of how much is spent.
I recently wrote a similar article, if you don’t mind my sharing, Who’s to Blame for Your Spending? You or You? in which I addressed this sort of complaint.
Regardless of studies conducted on the tendency for credit card users to overspend, it all still boils down to one thing: choice. Credit card companies don’t force you to spend beyond your means nor refuse to let you pay your bill in full each month; it’s all on the consumer.
J: Your post was win =)
I agree… just don’t get into credit card debt and be happy.
OR if you must… get into it when you are young bright eyed and it’s only like.. an ipod debt or so.
As for the populist approach — Either go all in or fold =)! socialism or capitalism woohoo~~ (jk kinda)
Yes, credit cards are just another tool for us to use for good or bad.
If you use it for the wrong reasons, then it is your fault and you shouldn’t blame others.
However, it is human nature and laziness to point the finger elsewhere but yourself.
I mean if you use the credit card for what its intended to, it acts as a way to leverage without costing you interest. The risk is put on the company instead.
Good reading material I picked few new ideas from your content.
The best way to save money is to save money.
Not play the credit card game. Most people carry a balance.
So every month you lose money. Worse yet you now have another bill to manage. unlike other type’s of loan’s you can’t pre-pay anything.
if you have a min balance of $2000 and a monthly payment of let’s say $150.00 It does not matter if you pay $1000.00 this month you’ll get a bill next month for the min payment of $150.00. you can’t pre-pay.
With an auto loan, I can make months worth of payments in advance.
I wanted to rebuild my credit. I bough a car. put no money down and used that
down payment as a buffer payment paying a year’s worth of car payments.
this months auto payment is $0!!!! I control the rate of payment and debt.
Credit cards control you.
Don’t fall for the credit card scam. Useless thing’s like air line miles and “points” mean nothing if you suddenly find yourself without a job or to sick to work. In interest rate rape and late fee’s and over the limit fee’s and collection call’s are not worth it.
Yes, credit cards are like carrying a real sharp double edged knife in your pocket without a sheath. You’ll get away with it for a while.. but eventual you’ll get stabbed.