Thursday, June 07, 2007

Is getting a card the key to financial freedom?

Very often, we think of a credit card as the gateway to unlimited shopping, splurging on our dream items, eating luxurious foods and spending on services that costs lots of money. It is indeed a painless way of spending money and a lot of people do get trapped into the vicious cycles of having credit card bills piling on them.

However, for me, I never have that problem simply because I am very strict with rules and principles. I do not believe in spending more than I can afford and I don't feel the need to show off with designer clothings and expensive spa holidays. So, if you ask me if "Is it too easy to get 'credit' which can cause debt if not used carefully?", I will say not really. One needs to discipline themselves and not the be kid let loose in the candy store.

As I have only one card with a high credit limit, I do not feel comfortable using it online as I am still paranoid. So I am thinking of getting a credit card with only $1,000 credit limit so that I can easily purchase stuffs online without worrying someone else bomb my card.

Therefore, if anyone ask me if they should get a credit card, I will tell them, yes. But it is only for security reason, i.e. one doesn't need to carry a bulk of cash. And the other thing is to better manage the money because with credit card statement, we know straight away what we spend and how much.

If you need more information, do check out UK credit cards site and see how you can optimised your usage. For example, you can transfer your current one to a new one with almost no fees involved.

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