A lot of successful business people think the use of credit cards is something far back in their rear view mirror like after their college days. They are financially comfortable now. But whoa Nelly. Don't think so fast like that. Things in life change in a flash. Jobs are lost, you wrack up family medical bills with your co-pay or all of it negotiated with a hospital with no insurance coverage, your business goes south, divorces happen and you divide everything, you want to start a new business franchise and you need some immediate cash on hand. Life continues to evolve. And you THINK how about putting a little of what you need on.... A CREDIT CARD. Some posts have been written on financial common sense and I wanted to issue a clarion call to
Beware Of Easy Money
The banks make it so CONVENIENT for you too. Offers of new cards arrive in the mail, bonus points, cash back rebates, and even CHECKS to write to whomever with that large $18,000 credit limit they gave you cause YOU are so credit worthy. There is no free lunch. READ the fine print. They do try to bury that from you. 3% to 4% Cash Advance or Balance transfer fees even if an initial 0% for 6 months payments. Late fees to $30 a month. And the worst, miss a payment BY A DAY and your monthly interest rate goes to 29.9%!!!! WOW.
One good thing they do with this "easy money" is they say if you keep making the minimum payment it will take you like 48 years to pay it off, but if you pay the RECOMMENDED rather than the minimum payment you can pay it off in 36 months, something a little more reasonable.