Friday, October 31, 2008

Credit Card - Your Friend or Your Enemy?

Credit card has changed for the past few years. I remember, in my younger years (about 10 years back), credit card is something exclusive for those 'rich&famous'. To apply for a credit card, you must have a minimum annual income of RM18K, which meant that a salary of at least RM1.5K/month. Not everyone can afford to have credit cards. Nowadays, almost all working adults have credit card. They not only own one, but a string of credit cards.
If you use wisely, credit card can be a great financial friend. Below are some benefits of credit cards:
1) Can represent your cash when you dont have cash in hand
Especially for those who's on vacation and those who need large sum of payment purchasing of electronic devices/settlement or medical bill/
2) For online purchasing
It's getting famous locally to do online shopping (air tickes/cosmetics products/ CD)
3) Autodebit services
You can perform autodebit from through your credit cards and save your worries on your unsettled bills
But, credit cards can also become your financial enemy if you misused them. A lot of people fall into credit cards debts and had to declare bankcruptcy. It's so easy to use them, but so hard to pay later.
So, my advice. Be smart, do not allow yourself to have unsettled credit card balance. Only use the credit cards when you have the cash to settle before the due date. Allow the cards to be your friend instead of your enemy!!

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