Credit cards are usually in the form of small plastic cards that are
issued from financial institutions to individuals and businesses that
offer a line of credit that is unsecured by collateral or assets.
Normal Credit Cards allow the user to buy products and goods with said
credit card at stores and facilities that allow for credit cards to be
used as a form of credit. When using a credit card you will usually be
paying interest on the amount of credit that you use each month.
Some credit cards offer no interest for a short period of time and some
offer payment holidays where you can skip a monthly payment. There are
many different types of credit cards and terms and conditions that go
You will find credit cards that have an annual fee for their card while
others do not charge an annual fee, but, may charge a higher interest
rate or shorter term before interest starts being calculated on
Most credit cards allow for cash advance options and you will usually
find that when you take advantage of a cash advance, you will pay a fee
upfront for this privalage and then a higher interest rate for borrowing
the cash. Nothing is free, especially cash from a credit card.
The advantage of credit cards are many and it allows us to go anywhere
in the world with a pocket full of plastic instead of bags of money and
currency. The advantages of using credit cards is great if you are one
of those people that can pay the money back. Borrowing money and buying
on credit is great, only if you can pay it back and do not get in
trouble by using credit cards.
The economy is currently in a slow state and we have found that more and
more poeple have been using their credit card to live and pay normal
living bills. These are the worst conditions for using credit cards. The
casual use of a credit card with the means of repayment is the best use
of credit from these plastic demons.
Many people in the past have collected as many credit cards as the
financial companies would send them and now with the economy slowing
down, the impact of easy credit and credit cards is now over. The people
that thought their homes and home equity would keep going up may have a
harder time repaying their credit card debt if they were counting on
their home equity or their home to bail them out.
The number of folks that are having to file for bankruptcy or defaulting
on their credit cards is growing daily and until the economy turns
around and jobs are created, unfortunately, we will continue to
experience this tragedy of credit cards and credit card debt being a
huge burden on normal working folks.