Financial Confessions: The Lure of Credit Cards and the Need to be Responsible

by Vinaya HS on July 29, 2008

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

In describing my credit card usage policy, I said,

I should look at every other option before opting to purchase with a credit card.

For reasons that still remain a mystery to me, I recently used my credit card to pay for goods and services when there were a whole set of other options readily available to me. I did so twice.

To begin with, I used my credit card to pay for generating my tax returns electronically. How dumb is that? Especially, when the income tax website offers the tax return preparation software as a free download. I could have also sat down with a pen in hand and filled up the forms manually (like I have done in the past five years).

Second, I used my credit card to purchase cinema tickets online. I have always purchased cinema tickets by paying cash at the booking counter. Worse, we couldn’t catch the movie and all the tickets went waste! Worst, each ticket booked online attracts a service charge. Hard earned money racing down the drain.

I still feel lousy for unnecessarily using my credit card. It’s, however, a good lesson learned. What strikes me as dangerous though, is the lure of credit cards — how easy it is to fall into debt from the comfort of your chair.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 3 comments… read them below or add one }

Anonymous July 29, 2008 at 9:42 PM

Hi Vinaya,
The lure of the credit cards is easy to get into…
But needs strong mind to control the useage….
Keep the blogs flowings..
Regards,
Girish

SimonD July 30, 2008 at 5:40 PM

Making credit card purchases is fine as long as the debt you run up is managable and you can afford to make the repayments. Preferably you should try to pay off your balance in full every month. One rule to abide by is that if you cannot afford to buy something outright; if you don’t have the cash then do not buy the product at all.

banu November 20, 2008 at 4:12 PM

Hi Vinaya,
Having started my career recently,all these info and posts are really an eye-opener. Keep up the good work.

Regards,
banu.

Previous post:

Next post: