The truth is that the best credit card deals are of the ‘no credit card’ type.
As we all know, credit cards allow the consumer to make purchases up to a pre-set credit limit. Most provide an interest free period as long as the account is paid in full before the set date.
"Some debts are fun when you are acquiring them,
but none are fun when you set about retiring them."
- Ogden Nash, American Writer |
If you fail to pay by the interest free date, interest rates can quickly go through the roof and various penalties are added for late payment. Sometimes, the charges associated with a balance of $3,500, if you make only the minimum monthly payment, can have you paying over $10,000 before the debt is cleared.
Debit cards on the other hand give you the convenience of a credit card, with the added advantage that you are only spending your own money and not the lender’s, thus not incurring debt.
This is definitely the way to go! None of the so called best credit card deals can beat out the safety and security of using a debit card.
A debit card physically resembles a credit card and is used as an alternative to cash. They are accepted every place that accepts credit cards and can be used just about anywhere.
When you purchase something with a debit card, the funds come directly out of your checking account. You can use your debit card for everything that you use credit cards for, shopping, ATM and getting quick cash.
Credit cards are just an invitation to the trusting consumer to accumulate debt. Borrowing money on time using the lender’s money and paying the lender interest is what the credit card companies want to accomplish.
A debit card enables the user to pay right away, using only the money in your own account. In this scenario, debt does not become the major factor in the transaction. Rather, convenience is the true benefit.
It’s a sad fact that America has become an obsessively ‘consumption oriented’ nation, where instant affluence is overshadowed by bill collectors, foreclosures and bankruptcies.
In 2007, the American consumer debt stands at above $8 trillion, of which, more than $18,000 per household is consumer credit card debt. What’s worse is that the interest has to be paid on that same amount, which reduces the consumer’s ability to invest and make new purchases.
Sixty percent of American families spend more than their after-tax income and consumers spend $50 billion more than they earn. People are in effect exhausting their savings, selling off investments and carrying huge debts.
It would take very little to push the average American consumer over the edge, financially speaking. In most cases, two or three months out of work or on reduced income would push them into bankruptcy.
Consumers are finding themselves more in debt today than ever before in our history, with no obvious way to correct their situation.
Two ways to avoid the ever-increasing number of bankruptcies would be for the financial institutions to either forgive the debt or to allow more time for consumers to repay their debt, but we all know the banks and credit card companies will never allow that – and why should they?
It’s remains the responsibility of the consumer to take complete ownership of their debt. Only once they do that will they finally begin to realize that there are no best credit card deals.
Forget using credit cards altogether, there are no best credit card deals, get a debit card instead.
"Money and success don't change people;
they merely amplify what is already there."
- Will Smith, Actor |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
