Cash is always better than credit cards

Payment in cash to avoid using credit cards, live within your means and avoid bad credit. Easier said than done? Not really.

The Americans need only get in the habit to resist the lure of high credit card debt interest, a major source of bad credit problems in the United States.

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The real cost of credit card

Advertising fuels Americans with affinity credit cards. Credit card debt in the United States has more than 750 billion U.S. dollars, with nearly 700 millionThe credit cards in circulation. Credit card companies at this fixed rate loan market, overlay the airwaves with commercials highlighting the cheap deals on the frequent flyer miles and other incentives.

But at what price?

A $ 100 pair of shoes bought on a credit card at a cost of 20 per cent interest rate of at least $ 120

$ 800 to a TV with the same credit card bought cost $ 960

cost of a package of $ 7 beer is $ 8.40

If the Americans keep their credit cardsin their wallets, purses - even better at home - they would save hundreds and thousands of dollars a year in interest expenses.

Some consumer debt may benefit people in the long run. One example is the student loan debt, higher education may increase the disability of a person really. Credit card debt, but adds no tangible financial benefit. Credit cards are like fast food of the coin - the charge at first, but bad for you anyway. Many people receive several credit cardsand lose track of their spending. These people also seem to help consolidate debt credit or other forms of debt reduction. These methods help people get out of debt and eventually improve their credit score.

The psychology of the credit card

No matter how free the Americans on their credit cards, this piece of plastic never goes away. On the other hand, the more money we spend, the faster the dollar bills disappear from our pockets.

The worstuse credit cards to understand the people you never know how much money they are spending - if you really diligent their finances. The strike of the credit card to the cashier is quick and easy, but paying cash for items, people are better informed about their buying habits. Consumers who use groping through their holdings of cash, notes and coins to pay for their purchase. You might also pause to assess how much money you have left after your purchase.

E 'seems to be a fake glamorous use your credit card. Advertisers play on this and shows pictures of fancy cars, shops and fantastic air leaks in credit card size ads. But the downside of the huge credit card debt is always made public. The documentary explores the most personal and financial toll of increased credit card debt. The increase in foreclosures and pressure on sub-prime real estate markets threaten the economy, leading to more titles. A positive spinThe credit of the United States, the suffering is that consumers always read more about credit management and in turn more money and save money for their purchases.

Cash is always better than credit cards