How to Responsibly Use Credit Cards

There are plenty of opinions when it comes to credit cards. There is a fairly sizable contingent that says credit cards are unnecessary. There are some that say credit cards are fine in moderation and then there are those that can never seem to have enough plastic in their wallets. However, most people fall into the second category and with good reason. Having no credit cards can make things like getting a hotel room or renting a car difficult or impossible. Having too many credit cards is on the other end of the scale and it can be a huge problem.

How People Truly View Credit Cards

The issues with having a glut of credit cards is that most people can’t handle using the cards responsibly. Most people, no matter how much they profess they can be responsible, cannot. To these folks, credit cards represent free stuff. Unfortunately, nothing is free and a whole world of trouble could be coming to people with a cavalier attitude towards credit cards.

The Financial Ramifications of Falling Behind

As credit card balances get high, payment levels go up. While this may not be a big deal in the immediate, it can turn into a real dilemma if a payment is late. Even a payment received a day late this can potentially result in a series of extra fees. All this can add up to serious money and it can also have a ripple effect for a person’s finances in general.

Extra Fees Add Up

In addition, cards that charge an account maintenance fee or an annual fee is extra money a person wouldn’t be shelling out if they didn’t have an excessive amount of credit cards. One or two annual fees may be manageable, but any more than that could mean a person spending multiple hundreds or thousands of dollars on extra fees on top of the credit card principle.

There are many more issues to go into to discourage going crazy with credit cards that can’t be adequately addressed in this article. Simply put, if you want to go through life without credit cards, there are worse things a person could face. However, getting excessive amounts of credit cards can be like a ticking financial time bomb waiting to go off.