Credit cards are a great invention don’t you think? I can guarantee you that some are saying Yes and some are pulling their hair out and shouting what is this guy on?

Well the answer is yes and no, it all depends on how you use them and not to abuse them. are a handy thing to have in your purse or wallet and I say this to people who use them to the full and can pay off their balance at the end of each month, this will help you climb the credit rating ladder and be good for any future needs in the borrowing market.

Credit cards used wisely..........

I will say again that are a handy thing to have in your purse or wallet, but I’m now saying it to the people who use them to borrow and pay back as little as they can and find that they are running up a large slice of debt. And I can bet you they are shouting back that they are too handy, they will also be correct.

A lot of blame is put on credit card companies for getting people into debt, some of that is fair but some is also unfair. Sure a APR can be a little over zealous, but in recent years these have came down and in many cases just now we are being offered up to a year of interest free credit. But again this can been seen from the other side that they are trying to snare the less well off into taking cards in the hope that they run up a debt that they cannot pay off before the 0% period is over.

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The simple fact of the matter is that credit card companies are in this to make money, we should and probably will be all aware of this, and so we should really take it upon ourselves to look after our own interests and make sure that we use the cards to our advantage and not that of the credit card issuers.

Some simple guidelines...........

If you feel that you would need a credit card then here are a few simple guidelines to follow, APR will be your biggest headache if you don’t watch it, choose a card that is offering a low interest rate, even if that means overlooking that great deal that one card is giving you, for example a 9 months 0% period on purchases, the sting can be the 17.9% APR that comes at the end of that period and will be added straight to any debt that you have accrued. So by choosing a credit card that starts off low and stays low, you will save in the long run. Also watch out for cards that charge a yearly fee and stay away Insurance Protection Payments as in most cases they are not worth the paper they are written on.

One more to do, if you can avoid paying the minimum payment then do so, credit card companies have dropped they’re minimum payments to around about the 2% mark, this is to give some the feeling that they are paying off their debt, but the truth of the matter is you aren’t, if you had to pay the minimum payment it would take you years to pay off your debt and that’s even if you stop using it. Try and pay as much as you can.

Take control of your finances.........

Credit cards and the way they are used stops at one person and that is you, so if you stay disciplined, use it to YOUR advantage and not to let it use you then they can be a great invention it is down to you.