The credit card conundrum
January 5, 2010
by Alex
1 comment
Just a few months into having my own credit card, I’m now reassessing the benefits of owning one. There are many arguments that try to justify the existence of the credit card.
Some people think that credit cards can be used a sort of insurance policy for those moments when shit happens. In extreme situations, they might. But one better has the means of earning the money to pay it back or else he or she might just be looking at another financial crises thanks to swelling interest.
Emergencies are what emergency funds are for – cash that’s kept safe to be used in case of emergencies. As the more stern financial adviser would say: Anyone who doesn’t have an emergency fund is just plain stupid.
Some would also say that buying on credit gives you the financial flexibility of spending your cash elsewhere. But is that really an advantage?
