A Credit Card Comes In Very Handy For This Person

Category: Finance, Credit.

There is always a sale or something that you must buy because of the holiday season, birthdays etc. and the credit card companies could care less that you are on a budget. The savings game is when a credit card company advertises to the average person who may or may not be on a budget.

Those credit card companies that want you to spend money that you don t have, the play the savings game . They claim that this is the perfect card, even if you are on a budget, it will help you stick with your budget goals. At the moment, that you swipe your new credit card, you may not feel the after affects of debt right away. Unless you are a highly disciplined person and you have a second stream of income coming in , an extra credit card can be like a death wish come true for those who are falling or already in debt. A few weeks down the road, you will begin to feel the difference. Many have quoted that a person doesn t get rich by spending . Buying a truckload of clothing for your new wardrobe is not an investment unless you are using it for a new career or to earn an extra stream of income. Spending not being mistaken for investing.

Rarely do you hear of a credit card firm advertise to the average person about, How this card will help you save money and build wealth. Credit cards are great if you are using it to make certain purchases through companies that do not accept cash. A credit card that is used for an emergency should not be mistaken for: I ran out of gas because I was completely broke and I live from paycheck to paycheck. If they are used for buying Airline tickets, to make hotel, car rentals reservations and etc, that s fine. I live on a shoestring budget with an endless cycle of debt. For example, a person has money saved for a rainy day, they just happen to not have the funds on them at the very moment. Once I swipe this card, I have no idea how I m going to attempt to pay this off. " An emergency is meant for those who have good spending and saving habits. A credit card comes in very handy for this person.

A person should basically have about two major credit cards and that is just in case they are in a situation where the company that they are making a purchase from does not accept cash and they only accept one type of credit card whether it is Visa or Master Card. Spending$ 20- $30 on gas will not cause them to go into further debt. So, a person should have both, there are companies out there that accept only one major Credit card. So, when choosing a credit card for your card collection, choose carefully. The average person should have about 2 or 3 department store credit cards not 15 cards with 15 outstanding balances.