Cautionary article about credit cards at Catholic Exchange
Yesterday Catholic Exchange had a good article about credit cards:
Studies repeatedly show that we generally spend more freely when using credit cards than we do with cash and swelling card balances are on the increase. According to recent data by CardTrak.com, the median (middle number) amount of credit card debt carried by Americans is about $6,600 while the mean (or average) credit card debt load is nearly $9,900.
The “sweet spot” for most credit card companies comes from consumers who carry high balances, consistently make the minimum payments and occasionally make late payments where penalty fees are incurred. Those of us who pay off our card balances on time monthly are affectionately known in the industry as “deadbeats.”
Complete article here:
Warning! What’s in Your Wallet May be Hazardous to Your Health!
Oh, yes - my mother was told, back in the ’70s or early ’80s, by a credit card company representative, that she was a bad customer because she paid off her balance every month!
Me, I developed some bad habits and am working on getting out of their “sweet spot” - haven’t had a late payment in YEARS, and try to pay more than minimum, but still have sizeable balances. Time…
I was a proud “dead beat” credit card user for years, also, but becoming a single mother caused a few major cash flow problems. :)
Most of the time I’m able to pay off at least most of the balance every month, but a bad case of personal overwhelm of several years’ duration has resulted in some late fees being incurred…d’oh! I hate that! Might as well take two $20 bills and tear them into little pieces and pitch them into the wind!
Not to worry. I never carry a combined credit card balance higher than what I expect to get back in my income tax return. Seriously–I do live frugally, but sometimes inevitably I fall behind. Credit cards are a handy tool for occasional use and for carrying a *short term* debt. But at those kinds of interest rates it’s not wise to let those balances get too big or stay there for too long.