Credit Cards Are Still Comfortable
Additionally, the ability to put in a string of numbers to an online web site or to a client service rep over a phone means no long waitings for mails to deliver your checks or money orders in payment for necessary or wanted items.
As if anything comfortable, credit cards have a flip side, may be yet a dark side!
When you walk into a store, pick out an item you want, and reach into your purse or wallet for cash, you immediately know if you can purchase it. However with the power of a credit card you don’t count your cash in your wallet if you could afford it. You pull out the little piece of plastic, hand it over for a minute or so, and walk out the door with your purchase in your hand.
Isn’t a wonderful feeling? But what just happened? Essentially, you’ve lowered your spending power. But unlike a cash dealing, that fact will quickly be forgotten. Often it will be forgotten till it’s too late. Now the next time you go shopping, you look in your wallet or purse, calculate your cash, and say to yourself that you even have that essential discretional revenue. In other words, the cash that’s remaining after you account for the budgeted costs you need to pay off to survive.
Is that true? Do you even own the same total of purchasing power after you purchased that nice lunch in the exclusive eating place, that pair of shoes, or the new Playstation? No, naturally not. If you budget income of $2000 for the month and costs including savings of $1800, what does that purchase of that $250 Playstation do to your budget?
It blows it, right. Yo are going in debt. However the bigger problem is, nearly all consumers do not recognize it because they have pulled out the card, spent $250 for the Playstation, $100 for lunch, $150 for shoes, and even have extra cash in their pocket.
Until the bills come. So then what happens? A lot of consumers look at the $500 credit card bill and pay only the minimum, or even a bit more, maybe $75 or $100, and they feel good! And next month they do the same procedure.
Is that what’s happening to you, month after month? You always expend more than you have. You purchase with credit cards and forget the bills coming in. And you slowly but certainly see your debt increase, month after month, until your credit card is out of limit.
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