What makes finance go round and round – just like the average Joe’s budget, down the toilet

Reputation for solvency and integrity entitling a person to be trusted in buying or borrowing: You should have no trouble getting the loan if your credit is good. Every day that my mail is delivered, I get at least two solicitations to obtain a credit card. The record to date is eight such missiles on a single day, of which six of them declared me to be pre-approved. Rather than being flattered, I cringed at the news.

In one day I was offered more than thirty thousand ways to totally destroy my life. Of course there was one part of me that threw out its chest and said “look at me, I’m a success,” but fortunately I was able to override that weakness and stand firm against folly. And folly it would be was I to fall into the money trap that Credit Card companies are forever trying to sucker you into.

Unfortunately, there are thousands of everyday people who ensnare themselves into the clutches of the banks through credit cards every week. “What’s so bad about them,” you might ask. “After all, they’ve never hurt me before and I always pay my bill on time.” All well and good, but be one day late and bingo! Suddenly you will find interest attached to your next and subsequent billings. And the number will likely be somewhat staggering reaching a whopping three percent in some cases.

That number is dependant on what is being included in the fee. Another pitfall that users of credit cards encounter is the “minimum payment” figure. It used to be that was one percent of the total bill which translated to payoff in 17 years were the minimum payment to be given monthly. Now, however, that there is a growing credit crunch, the minimum payment is in flux and may well be increased to a figure as high as three percent.

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