What often comes to mind when you hear the phrase, "Don't leave home without it" is the old American Express advert that many of us can still remember.
Today, many people would not leave home without a number of things: their mobile phone, business card, or credit card! Your mobile phone allows you to stay in touch with people; Your business card tells the world who you are, or rather who you think you are! Your credit card can pay for both mobile phone and business card!
So why do many think of credit cards as such bad things?
Credit cards are one of those things that you either love or hate, but in themselves they are neither good nor bad. Credit cards are simply tools, a modern day invention, a little plastic card bearing an account number assigned to the cardholder that can be used to purchase goods and services on credit. It simply indicates that the cardholder has been granted a line of credit. These days they are even accepted as evidence of the holders' identity.
Like any tool, it's how they're managed that determines whether they end up hurting, or helping you. When used properly they can flexible, convenient and extremely useful!
Their main advantages are:
· They are a safer alternative to carrying cash.
· When used responsibly, you build a good credit history and
· They can be helpful during emergencies.
On the other side of the coin, it's very tempting to whip out a piece of plastic at a moments notice, which makes them rather dangerous for some people. …And, because they don't feel like money, there is a tendency to over-spend. Sadly, about 60% of cardholders carry over monthly balances, which can lead into debt.
So using credit cards comes with a responsibility that as individuals you have to decide whether you can or cannot handle! Much depends on the holders' knowledge and understanding of financial issues, financial acumen and tolerance of perceived risk.
What I find exciting is that credit cards companies have been falling over themselves to give out free money in their lust to compete with each other and get a bigger slice of the market. So with a decent credit history, it's unnecessary to pay them any interest especially when many card companies are willing to lend to new customers at 0%. Some major providers will even pay the money directly into a bank account.
It's hardly surprising that a lot of people who've paid interest in the past have decided it's about time they used this money to their advantage! In many cases, these consumers have been able to use their credit worthiness to position themselves much more advantageously without needing to spend more money from their own coffers. Many people have admitted to buying their first property using money from credit cards.
As consumers, it can be beneficial to extend our thinking to accept the advantages of managed debt, despite the disadvantages of consumer debt. Instead of rushing out to buy the latest fad or hi-tech gadget using your credit card, wait: Could you use it more advantageously?
Anyone choosing to play the credit card game should educate himself or herself beforehand. It requires some level of discipline. Following are important hints one needs to know about credit cards to play the game successfully.
1. Be disciplined, not forgetful or inattentive.
2. Note the expiry date of 0% "introductory offer".
3. Set up direct debit for minimum monthly repayments
4. Never, ever spend on a card after balance transfer
5. Payment protection insurance not needed
6. No cash withdrawals!
Better still, what can you do with the money when you have it? Find yourself a good wealth coach to help you devise a workable solid financial plan. That's a millionaire habit.
All said and done, if you had to choose between your mobile phone, your business card and your credit card, what would your answer be?
Copyright 2006 Margaret Ntifo Margaret Ntifo is a Wealth & Prosperity Coach, a Speaker and author of 'The Money, Wealth and Prosperity' E-Program and 'The Dairy of an African Princess…' Margaret specialises in helping clients design & create compelling lives & businesses to love. Further information visit: http://www.MargaretNtifo.com/ Or subscribe to her free 7-Day e-course at: http://www.moneywealthandprosperity.com/mini_course.html You may distribute this article in its entirety providing this copyright notice and full information about contacting the author are attached. |
บทความ
ไม่มีความคิดเห็น:
แสดงความคิดเห็น