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Credit cards are a debt trap

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DEBT TRAP: Credit cards

I read on Yahoo that it is possible to live on cash only. Credit cards ever since the ‘credit crunch’ is a no go areas as far as financial experts are concerned. I agree, and believe that’s possible. However, I believe these cards can be very beneficial, while on the one hand bad for those who have no financial freedom. That is why they are given to adults because banks assume mature people can think. How wrong can they be!
The main worry about credit cards is the question of whether our people can afford them. And whether one has the discipline to know when they are over exposed to credit. The reality is that credit is expensive. Furthermore, not all credit is bad, however all credit brings you closer to poverty. Having said that, our financial set-up allows for Banks to charge prime plus whatever, as long as it falls within the stipulated or supposedly fair pricing. Now, this means that you will pay through your nose to make repayments if you are not careful. Prime is currently sitting comfortably at 11 % and so every one “tops-up” to maximize on profits. One thing for sure is, each financial player is in for the money and no one is in it for charity.
Credit cards have been around for a while now and they can only be good for you if you are sober and level headed. We are only jumping on the train when the situation is complicated. The buzzword is now consumer dependency on credit. One can only hope we develop a credit policy law as in South Africa, to curb or rather stabilize the situation.
The reality is that people will always call for credit advances. The least we can do as individuals is to get knowledgeable and practical about our financial standing and responsibilities. The government has got nothing to do with it, in case you want to blame “them”.
I am advocating for people to be practical and frank about money matters. There are simple things that we tend to complicate.
Firstly, learn to live within your means, and be mindful that priorities differ. Just because your neighbor drives a nice car does not warrant you one. Living within your means affirms your purpose in life. It shows an element of stability and self-acceptance which no human can give to you except YOU.
Secondly, learn to say no to credit. If you have a credit card from each Bank, you are simply beckoning trouble.
Thirdly, if you are not disciplined with money reach out to someone. I just don’t understand why we do not heed to any counseling, be it marital, financial and health based. Counseling is not just for white people or drug and sex addicts.
Lastly let’s all proactively seek information and stop being ignorant. When you are gullible you believe anything.

2 COMMENTS

  1. these are very good tips guys i fel a victim of bankrupsy cause of man u card.So guys u’L never ques za method they use to calculate yor interests only to them piling so better take care.