Those in credit card debt are in this situation for two reason only. One is an illness has cost them money and they had no medical coverage, either private or public. Not a smart move. The second reason is that they cannot manage money. Therefore, credit cards in and by themselves are not evil. They are evil for those who end up paying the minimum and die in debt. When they die the debt need not be legally paid unless it is tied up in an estate matter.
Moving on to the core question. If you cannot handle money tear up or rip up or cut up your credit cards. On the other hand there are those who handle debt nicely, even though they may not make all that much money. In this case they should go slow with the scissors.
When you rent a car you can put the reservation on a card and pay later with cash, with no balance on your card. When you charge something you are getting an interest free loan for a month. If you pay it back in a timely fashion, you owe no interest and the credit card companies despise you as much as the non-payers.
You must ask how important cash is at the time. If you must have cash on hand, charge and pay at the end of the month. If you need to watch the big game and make a purchase of several hundred dollars, pay it off in a planned pattern. Doing so will cut the interest owed to a negligible amount no matter how high the rate of the card. And all this time you have the product and cash for everyday needs.
Naturally, it would be the optimum situation to have put this television on a low interest or no interest card. I can attest to this because some companies were losing money on me and dropped me even though I used their card often. I was not paying them sufficient interest. I was as bad a deadbeat, as a late payer.
As you have noticed I was never in debt. If you got into debt from buying everything and anything then it is time to get the scissors out or rip up your credit cards. All of them, and start a disciplined regimen until you learn the value of money and how dangerous debt can become. Ask the U.S. government, but then they can print money — probably won’t be seeing Obama asking for a debt consolidation anytime soon.
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