I am not surprise to see so many children and teens equate credit cards with financial freedom. Think about it. They see their parents buy all kind of things with credit cards, but how many actually see their parents pay these credit card bills at the end of the month? Or worse, how much their parents owe and how much interest they are paying month after month! As a result, some of them believe they can buy whatever they want with credit cards.
On the other side are people who used credit cards and got hurt. They swear that these little plastic devils are one-way tickets to financial hell, and now refuse to use them. I do respect their decision to stay away from credit cards. Unfortunately, this is like avoiding power tools because they are more dangerous.
Credit cards will not help you achieve financial freedom, nor will they send you to financial hell. A credit card is simply a financial tool that must be used with care. There are pluses and minuses to consider, and when used responsibly credit cards can make your life easier.
Additionally, there are other benefits depending on the specific card that you use.
Whether you choose to use credit cards or not, it’s up to you. The important thing is to never equate credit cards with financial freedom.
Photo from Wikimedia Commons.
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