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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

15 Apr 2012

Credit Cards

Guest post

I know way too many people who abuse their credit cards, and then end up accumulating debt that is way more than they are able to handle. Thankfully, I was taught fiscal responsibility at a pretty young age, and think I have a good handle on my bills. This does not mean that I don't use my creditcard, in fact, the opposite is true. I use my credit card for most of the purchases I make. The difference between what I do and what others do is that I do not buy anything outside of my means just because I have a credit card that can delay the payments. I only buy things that I would be able to pay for in cash or using my debit card. I choose to use my credit card because, this way, I am able to accumulate points that I can use towards paying off my balance, gift certificates, hotel reservations, or even airline tickets. I always make it a point to pay off my balance in full each month, so I am never accumulating interest, which is really just a death sentence in the credit card world. This is not to say that I haven't accidentally developed a bill that was much higher than I anticipated. I always know that, even when I am really not happy about it, I have enough money to cover it somewhere. Generally I have enough in my checking account to pay the bills, but in those unfortunate circumstances where I do not, I can always transfer money from my savings account to cover the difference. I even have it set up so that if I forget to go on and pay the bill it automatically deducts from my checking account. I can see how sometimes you start to rack up your bill quickly if you are not carefully monitoring your spending, but I also have a hard time understanding how people make huge purchases that they know they do not have the money to cover with their cards. I have seen very few circumstances where that has ended well for the buyer, and I hope to avoid ever having to do that with my credit card.

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