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Archive for September 2nd, 2015


Don’t you just love those shiny plastic cards in your wallet that would allow you to go places and enjoy? Wait a minute. Before you think of using those credit cards in your wallet, think about this. I am not against using one (I have one in my wallet too) but you must learn to use it to your own advantage.

It’s the start of the BER months and some people are quite excited to make their list, looking for bargains (be it on travel, or gifts for families and friends). It is quite easy having a credit card because you won’t have to carry cash when you shop. You just have to present it and voila, everything  would be easy. Right? Wrong (sometimes).

A few years back,  I blogged about the advantages and and the setbacks of having a credit card. I can easily relate to it since I was a banker for more than twenty one years. I am sharing them again here. Some people think that having a credit card is some sort of  status symbol, when you have that shining plastic in your wallet, you could go anywhere you want, buy an item at the spur of the moment or eat at some fancy restaurant. When the billing statement comes, that’s when you scratch your head thinking where to get the money to pay  your bills. Credit card approvals are quite easy to get nowadays and the credit card limits,once you start using them are considered short loans from the bank and have fixed rate of interest if you opt to pay them the minimum amount stated on your bill. Once you make a default payment, surcharges are slapped on your next bill. Do you know that you could turn it to your advantage if you are a full payor? Being a full payor means you pay the full amount stated on your bill and you don’t need to wait for the due date to settle it. When you are short of cash and you want to have a month’s leeway in paying your bills, by all means do so and it would be to your advantage. How? You’ve used the bank’s money for a month without paying interest in return. Get what I mean?

Paying in cash of course is the easiest you can do because you would not need to worry about monthly credit bill payments. You won’t have to worry about surcharges too but if you know how to use your credit card properly, it’s like carrying cash in your hands without the fear of being robbed in the process. The best way to do it is pay via credit card for your purchases and pay the credit card company before your bill is due. You can enroll your accounts online including your utilities and you won’t have to leave your chair to pay them outside, a convenience right in your own home.

Cash or plastic? Take your pick.

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