Avoid the Credit Card Debt Trap
You could be falling into a debt trap and you wouldn’t know it. Consumerism has led us to believe that we must enjoy life to the fullest no matter the cost. This mentality has broken down a lot of spirits and has left people filing for bankruptcy. Don’t be lured into a debt trap with 0% interest rates, rewards and quick approvals. 
The first thing that you have to remember is that you don’t need a lot of credit cards. One or two will suffice especially if you have a simple lifestyle and do not really travel a lot. For those who already have half a dozen cards in their wallets, you might want to rethink if the benefits of having these plastic cards justify the horrendous amounts you will be paying for every month. Get a card that you can use anytime and is accepted in all the major facilities you frequent.
Do you really need store cards? Department store and gas cards might be convenient to have, because of the rewards. But these types of cards might have underlying fees and charges that you’re not aware of. Some of these cards also carry a higher interest rate. While you may think that the discounts are a great deal, it doesn’t really rationalize the fact that you will be paying more for your entire purchases. If you need a store or gas card, get one with low interests and plenty of benefits.
Swiping like crazy during the holidays is another debt trap. Some cards place a higher interest during peak seasons, because they are aware of the spending habit of the people. While you may think that you are steadily paying for the interest rate when you applied, a lot of companies are actually making a lot of money from our purchases. Read the fine print or call your bank to check how much interest they charge during peak seasons before you make huge amounts of purchases.
While some people cannot live without their credit cards due to its convenience, there are those who do not really need make purchases with the credit card. Purchases that you should not be charging to your credit card include the following: utilities, gas and groceries. There should already be an amount put aside from your salary to pay for these. Bills and other household expenditures should already be part of your weekly or monthly budget.
Pay in cash as much as you can. Spend the money that you have, and not what you think you’ll be earning in the next couple of months. If you want to buy a larger 52 inch TV set to replace the one you just bought 6 months ago; or if you want to take a cruise to the Caribbean after spending a week in Hawaii the other month; it’s about time that you rethink the kind of lifestyle you have. Credit card companies are only half the culprit, in fact they just want to help us bridge cash flow gaps. It’s the credit card owner who is responsible for the uses of his cards.
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