Do Credit Cards Make Our Lives Easier?

In theory, credit cards are designed to help us, but they can also hurt us. They can help us buy nearly anything we want, but they can also lead us down a path towards financial slavery. In fact, credit card debt is the worst kind of debt you can incur.

Banks and credit card companies have essentially conspired together making credit cards almost a requirement for most people. For example, owning a credit card can help you establish a good credit rating; vital for later in life, when you want to rent a car or apartment. Employers will even sometimes check your credit rating before offering you a job.

Millions of dollars are spent every year by the credit card companies convincing you that "what's in your wallet" can make life better. Their message is deceptively designed to make you believe that "life takes Visa" in order to be happy.

Having a credit card can save you money when used properly. If you bought $500 worth of items and then paid the $500 back before interest is applied, then you have basically been given an interest free loan.

Also if your wallet is stolen, but all you had inside was your credit card--and no cash--then you will not lose any cash at all, as compared to losing the cash you would otherwise have to carry in your wallet. Also, one quick phone call to your card issuer can cancel your cards and stop them from being used.

We all use credit cards to make life easier. Credit cards give us the extra buying power when we need it. And by using our credit cards responsibly, we can build up a good credit rating.

Credit cards can help us when we need to make an unexpected expenditure, giving us constant peace of mind without constantly carrying a wad of cash.

Credit Card Facts to Remember

Using that plastic when cash gets short? Spend carefully. Here are four facts you should know before you put that next purchase on a credit card.

• There is no federal limit on the interest rate a credit card company can charge.
• Card issuers can change the terms of your card agreement, including the interest rate, at any time, for any reason, with as little as 15 days notice.
• There is no limit on the fee a credit card company can charge for late payments.
• One late payment, even after years of on-time payments, can result in a significant drop in your credit score.