VIDEO ON MSN MONEY
The people who pull these stunts are the same
Facebook "I'm going on vacation!!!" "How'd my house get robbed?"
Text or e-mail unsavory comments about someone & then hit the global-send.
If you use it as a cash flow paying it all at the end of the month, nothing wrong with that scenario. We did that for 50 years of married life. If we did not have the money to pay at the end of the month we did not buy it. NEVER NEVER NEVER paid one single cent in interest.
Even hookers take payment with credit cards these days. MasterCard is the most accepted but they charged me, I mean, they'll charge you a slightly higher rate and an extra 1% for the processing fee. I had to, I mean, you have to ask them ahead of time if they accept it though because they usually expect cash and may even offer a discount if you pay before being serviced. Make sure to get a receipt if you do pay by MasterCard, else the hooker can claim the payment didnt' go through and will charge you a late fee, interest and penalties. She may even turn your account over to the collection agency and your credit score may take a hit and the collection agency will then hassle you. Then I had a, I mean, you'll have a hard time explaining to your wife why you had to pay the outragous fees, interest, and penalties and you'll have to call the credit card company to sort it out. Even when I, I mean, if you call the hooker back, the most she'll do is give you a buy one get the second of equal or lesser value free. I had no choice, I mean, you'll have no choice but to agree to her then. I guess she was pretty smart to get my repeat business, I mean, your business. This is the last time I'm EVER going to her... this week (well, after my apt with her this evening and tomorrow evening anyways). Not speaking from experiece though...
Today, I charge almost everything in my life because I'm racking up some serious AMEX points doing so! LOL. But, I'm still heeding mom's advice....well, the intent of her advice. Which was discipline. Basically, my husband and I agree on our approach to paying off charges - ex: ongoing expenses paid off each month, vacations are budgeted and paid off before we actually travel, and furniture or other large items are also budgeted with a regular payment we commit to making each month (that is much higher than the minimum).
Again - the moral of the story is discipline. If you don't have it, don't use credit. Instead you should hoard cash and spend with your ATM/debit card.
When you use cash and I don't mean a debt card, you are faced with a choice at the time of purchasing. Do I value the merchandise in my left hand more than $100 bill in my right hand ?
There is more pain in parting with the $100 bill, than swiping the plastic. People would spend less and run up less debt if they had to part with something they valued at the time of purchase.
Pay them off in full and you won't ever be in trouble.
As for buying a business with them, it depends on the business of course. It's not so easy as the article states to just go down and "get a business loan at a bank instead." Banks are not lending like they did 10 years ago.
Many businesses have been funded by credit card cash advances, it's the ones that are shaky and with owners who don't have fiscal discipline that get in serious trouble. If you partially finance a solid franchise with some of them for certain costs with the plan of paying them right back, it can be the only way for a lot of start ups.
Excuses I have heard over the years for over using credit cards:
1. I didn't have any overtime last year and couldn't ask my kids to do without - it wasn't their fault!
2. I was laid off and it was a perfect time to take the kids to Disney World.
3. I lost my health insurance and couldn't afford therapy, but shopping made me feel better.
4. I have to keep up the imagine or people will know that I am struggling.
5. I needed a make over and new wardrobe before I went job hunting.
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You can give your car the care it needs without draining your bank account if you follow this advice.