Credit Cards

Now to a topic I have already mentioned a bit: credit cards. Credit cards area very large part of our economy and are really a new form a currency. Hardly any people write checks now unless it is a business paying their employees. Credit cards have almost replaced normal currency. I'm not saying that paper money is not being used, I'm just stating that a high number of people use credit cards and simply pay them off online. Like I said, credit cards can be good for building credit, but they can also ruin your credit. You need to try to keep your credit card balance as low as possible. Credit card companies make their money off of interest that you have to pay for every month that you have outstanding debts to them. Most credit cards have an interest rate of a bout 23% APR. $4000 plus 23% APR is 4920 per year and that is not counting the service charges. That is a lot of money!. In building up $4000 in debts you also built another $920 into that debt. So be careful how much money you put into your credit card or play Online Games. If you can find any way to pay for something you need, do that.

Credit card usage should be a last resort for just when you need to make it to the next paycheck. Credit card are the international currency. A credit card can be used anywhere that accepts credit cards, even in other countries. This is very conveneint because you won't have to have your money exchanged for the tender that the country you are in uses. so credit cards have thier ups and downs. As long as you know how to safely use your credit cards and keep out of extreme debt,you will be ok.

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