credit card use is similar to a double edged-sword
Miami, FL (PRWEB) December 31, 2014
Debt Consolidation USA recently shared in an article how consumers can learn better when it comes to using their credit cards. The article titled “Perfect Places To Pay With A Credit Card” looks at consumer behavior and how they are misusing their credit cards. This behavior negatively affects their budget and even long term financial plans.
The article starts off by pointing out how credit card use is similar to a double edged-sword. It has tremendous benefits that allows consumers to purchase big ticket items and pay for them over a period of time. And on the other hand, credit cards can also bury consumers in tremendous amounts of debt.
One of ways consumers misuse credit cards is when they are paying for their income taxes. This is because there are processing fees involved that the cardholder has to shoulder. The same goes for using credit cards to pay for parking tickets and even the rent. The amount goes up because of fees added on to using the card.
The article also points out how using the credit card to pay for student loans might actually be a bad idea. More than the additional fees for processing the transaction, repayment becomes a little tougher. This is because the billing statement will be coming in a month’s time carrying the payment for cost of attendance.
There are federal student loans that can be used to pay for college that carries lower interest rates and payment comes about six months after the students separates from school. It also carries numerous repayment plans as well as borrower protection that might not be present with credit cards.
The article also points out how some consumers choose to pay for convenience by using their credit cards when watching a movie or even purchasing items from small establishments. There convenience and processing fees that the consumer has to shoulder. To read the article, click this link: [http://www.debtconsolidationusa.com/creditcarddebt/perfect-places-pay-credit-card.html