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Originally Posted by ThePerfectHacker  I do not own credit cards. I wanted to ask if you can pay everything using only pure money then is that better? |
Well, if you pay the balance off each month there is no finance charge, so you have complete equality with money. If you don't pay off the balance you are charged a fee and it becomes as if you took a loan.
The only evil I see in it is if the person is not educated enough to understand what happens when you run up a $1000 charge and don't pay it off: the service charge is huge and the minimum payment per month skyrockets. And if this isn't bad enough once you have done this your credit limit is increased and/or you get tons more offers for more cards. In this case you are much better off to use money: you can't "over spend" cash you don't have. (My sister wound up with 9 cards pushed to their limit and spent about 10 years paying them all off.)
By the way, have any of the rest of you seen that new Barbie doll that comes with the credit card? (I think it's a Barbie.) The commercial I saw for it has a little girl saying "I can spend all I want!" Don't worry: it's a fake card. But I think the attitude behind the promotion is dangerous.
-Dan