Although a credit card offers you convenience, it is not cash, simply a substitute for cash. You need to have cash in your bank account to pay for all the purchases. So using a credit card to solve your financial problems does not work.

Costs Of A Credit Card

It is very tempting to use a credit card to buy things we cannot afford. However a credit card is not a freebie. It only lets you to postpone your payments for a short time. Should you default, you will pay not only the initial amount, but also interest that can be as high as 30%.

When the credit limit of one credit card is used up, you may go in for another one. It is always so easy to spend. Before you know it, your financial problems have increased, not decreased as you wallow in an ocean of debt. Credit cards have not solved your financial problems, they have compounded it! While you can use your good will and personal charm to stave off repayments to friends and relatives, the credit card is insulated from your winsome personality. There is an interest charge piling up relentlessly and ruthlessly for every day