5 Purchases to Avoid using a credit card

Credit cards are very powerful and useful financial instrument, however, cardholders should use them very careful to avoid being trapped in a debt cycle. Cardholders should be aware the huge expense will accrued by using the credit card, which is the purchase plus all the interest charge by using the credit card and by not paying full amounts. The following list is the five worst purchases financed with a credit card.

  1. College Tuition:  College students are not fully aware of how difficult is to pay credit cards with compound interest rates. In many cases, college graduates don’t obtain a dream job with the sufficient income to start paying off their debts.
  2. Taxes: Taxpayers were not aware of the large debt with the IRS, therefore they make payment plans with a credit card, which they get charge triple fees: collector’s fee + IRS’s interest rate + Credit Card interest rate. Taxpayers will be better off if they only pay the IRS, with a payment plan fee, rather than paying triples fees.
  3. Big Wedding: Couples dream about their big and special day, they also live within their means; therefore using credit card will be the best option, but it is not worth it for them, since they will be forced to begin their lives together with debt.
  4. Vacations: Vacations are fun and a stress relief, but when travelers finance their vacation with credit cards, they will only be causing more debt and stress to their lives. The best vacation is the one that fits their means, and the best way to finance a vacation is by funding each month the monetary amount until the goal is reach.
  5. Medical Bill: Treatments cost are very costly, however the best way to finance the expense is by speaking with the providers to adjust their rates or offer a payment plan.

Credit cards are the worst financial instrument, since they are unsecured, carry the highest interest rate than a home or a car loan, and it’s never tax deductible. J&B – a Houston Commercial Cleaning Company – suggests being very careful with the usage of a credit card to avoid being trapped in the cycle of debt.

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About J&B Professional Cleaning Service
Specialing in all types of Janitorial, Construction and Remodeling Clean-Ups

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