Credit Cards Can Be Helpful
As the economy has tanked there has been lots of talk about the evil credit card companies. How they have been charging people crazy amounts of interest and ridiculous fees when they miss their payment by a day.
The problem with credit cards and any sort of loan is that the people who loan you the money want it back at some point. They also want interest on the money, which means you not only pay for the shoes but you pay interest on them. The longer you take to pay the money back the more your purchase ends up costing you.
No one ever likes to talk about personal responsibility, but that is the truth of the matter. We are living in a “I want” society and when it all blew up in our faces we need someone to blame. The person who is partly to blame is looking at you from the mirror every morning but that is the last person any of us want to blame.
Credit card companies will let you borrow as much as they think you can pay interest on. Most people think it is based on what you can pay back, but the honest truth is that the companies make their money when you don’t pay the capital sum back. If you don’t pay any interest then the company isn’t making any real money.
If you are not in money problems then pat yourself on the back, but don’t get too cocky. Do all you can to reduce your credit bill and to increase your cash reserve. While we all hope nothing bad happens to us, there is no way of knowing for sure so it is good to be prepared for the worst while we hope for the best.
A friend of mine explained the way she kept her useage of credit cards under control was to freeze them in a block of ice. She could still get to them in a real emergency but since she never wanted to carry a block of ice with her when she went shopping she was never tempted to use credit to buy anything.
Wondering about Credit Cards for small business can make you nuts. There is lots of information available that discovering out which are the best business credit cards for your business can be practically impossible without some help.
