Paper or Plastic ?

We all like things that are convenient for us. But what happens when that convenience turns into a burden? That can easily happen to us when we have credit cards. Credit cards have many positives. They are convenient; they are quick and easy to use. Many of them come with ways to earn points and rewards. Having them can be a source of security. No one wants to carry hundreds or thousands of dollars with them in their pocket. But it's so easy to carry a simple piece of plastic. Another good thing about credit cards is that they are a good way to establish credit. At the same time though, if used in the wrong way credit cards can destroy your credit.

When I was in college I got my first of many credit cards. It had a credit limit of 250 dollars. Needless to say I was one happy eighteen years old. This one card led into another and another and another. What started as a good thing quickly turned into a bad thing. It was a bad thing because like most people who get their first credit cards I didn't realize all that came with it.

I just saw it as free money. Not as something I needed to pay back, and pay back relatively quickly. You see the convenience of it being quick and easy turned into a not so good situation. It was just that. So quick and easy to use, that I quickly maxed out each and every card I had. You may think that that was alright but, I was in college working part-time I didn't have a thousand dollars let alone the first 250 to pay back. So I thought I just pay the minimum. But making the minimum payment takes longer to pay off the debt, because you're paying just that, the minimum. The minimum which also includes a lot of added interest. And what seemed like a good idea I quickly realized that i was just going to end up paying more in long run. Not only do you need to pay more than the minimum but you need to pay on time. And never stop paying. Because once you stop paying, then the penalties and added fees come along. The interest rates rise and your once clean credit history is just that, history.

So even though having a credit card is good at times, you have to know how and when to use it. I keep just three credit cards. I keep one for a department store, one for a grocery store and one major credit card. Even though I have them I try not to use them unless it's absolutely necessary. I have to keep the mentality of, if I don't need it, I don't need to buy it. Thinking this way will save you in the long run. And you can have and use your credit cards the right way.