Credit cards allow you to build up a credit history. This may help you with credit related activity such as getting a student loan, car loans, renting an apartment, or buying a house. Credit cards are also convenient since they provide a reduced need to carry cash and provide security in case of an emergency.
However, credit cards are not for everyone, and if you have one you need to act responsibly. You need to be able to afford a credit card, and also need to pay off the balance each month. The over-use of credit cards has been a major reason why so many individuals have too much uncontrollable debt.
For those that fall into the credit trap, being in debt seems almost forever. Meanwhile, high interest charges and late payment fees eat up most of their available money. Many credit card holders do not even know how much they are paying in interest, and what impact it has on their overall financial well-being. Learn about your credit card before you use it!
Source: Money Instructor
– CTYA Finance Committee
Tags: News, Workaholics
