Andy Sturts' Blog

Use credit card is a great convenience. With just one thin square of plastic, you can make big purchases without having to bring cash, even pay it over easy-on-the-pocket monthly installment as no interest. You can use it to pay for items you bought online. You can bring it with when you travel –no need for traveler’s checks or enough cold cash to cover the whole trip’s expenses. You can also borrow money from it for short-term needs. Best of all you have a safety net if ever yourself in emergency situations that require large payments.

Yet some people view credit cards with suspicion, thinking it may lead their finances astray. The truth is your credit card can work for you, or against you, depending on your spending habits. If you are making 20,000 a month and you have a credit limit of another 20,000, don’t put the two together and think of it as your total income.