Wednesday, April 05, 2006

Credit cards - good or evil

Wowow look at the stats

$1.7 trillion Total consumer credit.
$8,562 Credit card debt carried by the average American.
$50 billion Total finance charges Americans paid in 2001.
$1.6 billion Market capitalization of AT&T -- the entire corporation.
78% Percent of U.S. households deemed "credit worthy" by the lending industry.
1.3 million Number of credit card holders declaring bankruptcy last year.

As usual.. credit cards are evil. Yet they are good - they let you to borrow free for 30 days.

1. Convenience -- How much cash can your wallet hold?
2. Budgeting Technology -- Lenders track spending for you
3. Reputation Boosting -- Can build credit worthiness
4. The Float -- You can borrow free for 30 days
5. Openness to Negotiations -- Your business is wanted, ask away
6. Corporate Might -- Can get help with retail disputes
7. Cops and Robbers -- Protects your cash from fraud

well, *gasps* when are ever credit cards revered as goodness?

"Despite the lending industry's less-than-centered ways, credit cards can be a tool for good in the hands of a savvy consumer." Yep. They are good only if you are a savvy wolf... I mean customer.

Why they are pure evil:

1. Applying for a Mortgage? We'll Bump Up Your APR.
2. Beware Two-Cycle Billing
3. Prepare to Pay More
4. Overseas Rip-Offs
5. If You Don't Use Our Card, We'll Punish You

Resources above and above are ripped off from http://money.aol.com/creditdebt/cards/spotlight. Good information on there. Credit cards are so easy to abuse. Please be careful and read the fine lines. They are not free cash. Some companies charge you for NOT using them. Or increasing your APR if your card is inactive for a certain period of time.

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