Thursday, July 9, 2009

Good and Bad Credit Card Use

Credit Cards are Good...
• For identification (required for train/air tickets, movie tickets)
• As a safer substitute for cash.
• For automatic record keeping.
• To consolidate many purchases into one payment.
• To save money when you can take advantage of a good sale or offer.
• For placing orders easily by mail or phone.
• When you have leverage against the merchant when a problem arises. Your dispute/claim will get prompt attention when the merchant knows your payment can be delayed or disputed.

But Don't Use your Credit Card...
• As a recurrent temptation to overspend
• To purchase non-essential items.

As a result you may,
• Increase impulsive spending.
• Make payments late or only partially.
• Face bankruptcy.

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