Are you contemplating getting a credit card? Don't do it.........
By tess1960
@tess1960 (2385)
United States
June 4, 2007 8:12pm CST
I admit it, I got in over my head with my credit credits. Now I am looking at 5 years of regular monthly payments to pay them all of. 5 years!! And all I have to show for it is junk and a bad pipe dream, I bought into a home business that required way too much time and effort and constantly buying more leads and more leads. Then when i realized what was happening I got out and got one of those no interest on transfered amounts cards. Oh yeah m that will work and help. Well, in theory, but, miss just one payment or be late just one time and WAMM, full interest on the transfered amount. And to top it off they went and raised the interest and the mionimum monthly payment amount more than tripled due to some new law. Damn, that hurt. So finally after drowning each montha nd wondering how I was ever gonna do it, I got the company to agree to a payoff loan that is well not rally a loan. i agree to cut up the card and they agree to give me lowered interest and no more late fees as long as a payment comes inevery 35 days for 5 years, then it will be paid off completely. Nice of them but the interest that had accrued over the time when I did not know about making such a call and request almost doubled the amount I owed. Gees! So anywho, now I have 2 less cards and two 5 year agreements and my advice is DON'T GET A CREDIT CARD. I have one other that has refused such a deal. They want their interest money I guess. I admit having one card for emergencies is probably a good idea but that's it, no more. i counted the other day and between my hubby and I we have 9 different credit cards and are carrying some debt on all of them, some minimal but 4 high dollar. gees! How did I ever get myself into this mess, what was I thinking?
That's just it, I wasn't thinking!
6 people like this
17 responses
@gorgeousbevs (75)
• Philippines
5 Jun 07
I just received my first credit card card yesterday! Though I know the consequences of having this, I still would want to have one... I think we should just have control of our expenses... Just buy what we need and not what we want...
@tess1960 (2385)
• United States
5 Jun 07
Good advice bevs, and never forget it. Leave it at home unless you are planing a trip or to buy something necessary. I admit we would not have a refrigerator if it were not for our Sears card and we got paid it off in less than a years time.
Good luck gorgeous!
1 person likes this
@gorgeousbevs (75)
• Philippines
5 Jun 07
Then see the good side of having a credit card... ^_^
Good luck to you also!
1 person likes this
@tess1960 (2385)
• United States
5 Jun 07
Just be careful and do try to not use when it gets up to high and keep in mind those late fees can build up as that is part of what got me, late fees. And they want them now so it brings up the minimum payment for that month. I know have a autopayment scheduled each month for the two cards I have on the 5 year plan to get paid off completely. It is tae=ken out of my checking account so I don't have to worry about forgetting. Not having the money wasn't the problem it was procrastinating or forgetting!
1 person likes this
@whiteheather39 (24403)
• United States
5 Jun 07
I would have to complete your topic heading to read "Don't do it... if you are irresponsible, looking for spending on things that you cannot afford." They are very handy to have as long as you remember you have to pay the credit card company back for lending you money. Everything has a price and you have to pay it. I have only had 3 different credit cards one from each of the major companies for 20 years and I have NEVER gotten into debt.
1 person likes this
@tess1960 (2385)
• United States
24 Oct 07
Congratulations...I am pleased you have been able to keep your cards under control. Many were raised to use them spareingly, many were raised not to use them at all. Others, like me, recieved no uprbinging or training as to how you can get caught up in it all. One mistake I made was using one lower rate card to pay off a higher rate card. When the balance goes up so does the monthly payments, duh! But I really did not know that. And I am considered a responsible intelligent person by most. I just did not know.
Anothing thing to watch out for is repeat/reaccuring monthly, bi-monthly or annual subscription fees being added to your card automatically.
@wisedragon (2325)
• Philippines
5 Jun 07
I commend you for sharing your bad experience with credit cards. This will warn young adults before they get into the same trouble.
The reason for all this is an unseen power called compound interest (interest continuously generating further interest). We need to be aware of this power. It can have either a positive or a negative effect on us. We're either on the good side or the bad side of it.
When we invest our money, compound interest works in our favor to make us richer and richer. Money works for us and our assets multiply.
When we accumulate debt such as loans and credit cards, compound interest works against us to make us poorer and poorer. Our liabilities multiply and we become slaves of money.
I hope I was able to shed some light into this matter and guide people into making better financial decisions.
1 person likes this
@maryannemax (12156)
• Sweden
5 Jun 07
well, it's because some don't know how to control the use of credit cards that's why they end up in too much debts without even noticing it. true that we should always pay right away. but there are instances when some can't. and that's where the problem starts.
1 person likes this
@tess1960 (2385)
• United States
24 Oct 07
I always intended to pay off each month, then I had a few lean moths and paid just the minimum, then I got into a small buisness venture that caused me to pull out the credit cards with intent to pay off within the year and well, it just got out of control quickly. I never intended it too, non of us do. It just happens and I wish I had never gotten all of the different cards. I think 1 is ok for emergencies only, like replacing home appliances or if the car breaks down unexpectedly, but then pay down quickly.
@lexus54 (3572)
• Singapore
5 Jun 07
I hold 5 credit cards, and I am very proud to say that I do not owe any credit card company any money, except the current month's bills which are not due yet. I always uphold my principle to pay every bill in full. To maintain this, it means that if I cannot afford to pay for something, I will not buy it (or I will delay buying it) even if I can get credit for it. I have kept faith to this principle, and have never gone into debt before. It is a discipline that I feel is good to adopt.
Credit cards can be a financial trap if not used properly. Many people have a false sense of financial security, because they think that by getting credit, they can afford something because they can pay for it later. Then they keep repeating this, and very soon, the credit accumulates larger and larger. Then when the credit limit on a card is reached, they will move on to another card and the whole cycle repeats. Before they realise it, they have amassed a significant debt which they will be unable to pay for a long time. By then, it is hard to kick this uncontrollable spending habit. My advice is not to start this, and spend within one's means.
2 people like this
@whiteheather39 (24403)
• United States
5 Jun 07
Good for you lexus54 that is correct way to handle credit cards. That is how I do it and I have never gotten into any trouble. The other big downfall is so many people only pay the minimum amount so they just keeping getting deeper and deeper into debt.
1 person likes this
@tess1960 (2385)
• United States
24 Oct 07
Thank you to both of you. Yes, I fell for that minimum payment trap also and am now trying to double the minimum payment to get it under control. I have 2 almost paid off and they were the smallest. I am still struggleing with the others but know someday I will persevere and be debt free.
@lexus54 (3572)
• Singapore
6 Jun 07
Yes, you are right. This minimum amount thing is also another financial trap. I used to have a friend who worked in the bank. He told me that although the banks (that issue credit cards) charge commission from the retailers, their real money maker is not from this commission. It is from the interest charged for rollover amounts that consumers do not pay when they only pay the minimum sum. The charges are so high it is not worth to keep rolling over unpaid credit.
1 person likes this
@maumbi (2570)
• Indonesia
5 Jun 07
yeah i know about credit card the rule, benefit and the risk, i apply credit card after i making review with a lot things, include how much money i have spend to pay billing, how much money my income monthly and so on.
also i have back up from insurance company about this. credit card is only usefully if you think you can use it...if you dont so never try to apply.
@lingli_78 (12822)
• Australia
6 Jun 07
well, that's the trick of credit card company isn't it??? they let you have as many credit cards as you want and then you won't realise it when you start using them until all the bills show up... that's why i am really careful in using my credit card as i don't want to land in a debt situation... i only use 1 credit card at the moment even though i have two and i always make sure that i pay the full amount on time... my policy is... if i can't afford it, i won't buy it... as simple as that...
@emeraldisle (13139)
• United States
5 Jun 07
Believe me I've learned my lesson when it comes to credit cards. They are not something I can handle. I do not want another one, just like I don't want another checking account where I actually have checks (a check card maybe but no checks). I'm bipolar and I have found that in a manic phase or a serious depressive phase I will spend money I do not have. I'll charge, I'll write bogus checks and I just don't care. So now I don't get them at all. Don't want to tempt myself. It's too easy for me to get into the same hole I have been in the past. I was just now recently able to get a savings account, something a few years I couldn't do, and my credit isn't totally in the tiolet. Maybe in another few years my credit will be decent.
If one is going to get a credit card my one thing of advice is this: Only put on there what you can pay off within two months time at maximum. Two payments worth max. Use it for emergencies or the like but make sure that if need be you can pay it off that quickly.
@elean6785 (96)
• Philippines
24 Oct 07
I also agree with you. Don't get credit card, but, i have one! My mom told me to get one in case of emergency or for groceries. In my experience for two months, it sucks, this month i have to withdraw cash from my savings just to pay for it cause i just can't pay for it with my salary. Plus my card has an extension to my mom so i pay two, mine and my mom. Damn, just need to start a small business to increase my income.
@mama4kids (690)
• United States
5 Jun 07
i feel the same way. we are in way over our heads with credit cards too. it is sickening!! i just recently went into a debt consolidation program for my cards but my husband didnt. we have way too many bills that it is scary. some days i just cant handle the stress and others i try to tell myself that it is only money. but unfortunately, money makes the world go round. i wont make credit card mistakes again, ever!
1 person likes this
@ocalhoun (199)
• United States
5 Jun 07
There's nothing wrong with using credit cards.
Just two rules:
1: PAY THE ENTIRE BALANCE EVERY MONTH
2: NO exceptions to rule #1.
I have a cash-back card that I pay off every month. I've gotten around $200 in rewards, while never paying a dime of interest.
They will try to tempt you to put more on it than you can pay; they keep raising my credit limit without me asking, for example. You just have to follow the two rules, and you'll be fine.
Using strategies like that, you can live debt free like me. To me interest means profit; I get around $5 a month in interest. But to most people, interest means loss. How much interest do you pay a month?
@simplyshawn (650)
• United States
23 Oct 07
I know how you feel. It's too bad we have to learn from such a bad situation. But in the end...you will never again have credit card debt and that will be a great feeling.
My husband and I have gone through a similar situation. And we have nothing to show for it either.
Around this same time we heard of Dave Ramsey a couple times and bought his book, The Total Money Makeover. (Now we give his book to all graduates.)
We learned a great deal from reading it. His book is a financial PLAN. Most of us have no plan at all, we didn't. We now budget our money, meaning we tell our money where to go and what to do. The only debt we have is our house. It is a great releaf not getting those credit card bills in the mail.
I hope you continue to tell people about what you're going through. Maybe you can prevent someone else from getting so far in debt.
I wish you well.
@maryannemax (12156)
• Sweden
5 Jun 07
if only i wanted to have a credit card on my own, i could have had one years ago. my dad has his credit cards and he asked if i wanted to have one extension card from his account. thinking about it, i almost got tempted. but knowing how shopaholic i am, i decided not to take my dad's offer. i don't want to end up my dad being burdened with my debts. and so, now, i am glad i did that decision. i am actually debt free (whew!) and that's a relief.
i am glad that somehow, you realized this. better late than never, right?
@addysmum (1225)
• Canada
5 Jun 07
My husband and I have one credit card. It is through our bank and has a great low interest rate on it. I have had a credit card since I was 16 because I have owned my own car since then and needed a way to pay for emergencies. We only use or credit card for emergencies and pay it off every month (if we can, we had a big flood a few years back and it took a couple of months to pay off the cost we incurred).
People get into the trap of credit all the time. All these offers that show up at your door seem great. The businesses that offer buy now and don't pay until .... they are a great example of the trap. The Brick offers buy now and don't pay for 2 years, great!!! The interest rate on that is crazy. If you don't pay it off before the 2 years then you start incurring interest at 29 -30%. Eletrolux vacuums have a similar offer. Buy now don't pay for 6 months. So you buy the $1600 vacuum and at the end of the 6 months you start paying 30% interest.
I recommend tearing up the cards that are high interest and get down to just 1 or 2 cards. My bank offers a line of credit card, it is a line of credit that you use as a credit card, this is a great offer. Don't even open the city financial offers just tear them up. Master card, and visa send offers also tear them up. Don't fall into the buy now pay later trap unless you know you can pay it off before the interest starts. (I bought my husbands Christmas gift on one of those buy now pay later and had it paid off in 1 month.) Get a bank related card, if you have good credit and are in good standing with your bank they will give you the best terms. DON"T USE IT UNLESS YOU HAVE TO. Don't buy jeans because they look good or lunch because you can only use it as you have to.
@ellie26 (4139)
• Malaysia
5 Jun 07
You are so right about the credit cards, tess1960. I had 5 credit cards and I have used up all the credit limit. It hit me real hard when I couldnt even make the minimum payment and the interest kept on accumulating. At the end I was in deep debts. But luck was on my side, I somehow managed to clear all except for one credit card. I too strongly discourage anyone who is thinking of getting a credit card. It is a big NO NO, my friends.
