Credit card in itself is not evil. Actually, it's beneficial if used right. Big purchases can be converted into installments. Online transactions are more convenient. Also, bills can be settled without hassle with their auto-charge feature.
When I was at my first year at work, credit card agents started to call me. They offered cards with promo like a discounted gadget upon sign up, and so on. I was cynical at first since I had this bad notion about credit cards. I continue to declined their offers until one day, I got persuaded by this sweet, friendly agent. She said I don't have to pay anything since the first year of membership is waived and I can just cut it after a year if I don't want to renew my membership. So I signed up. I thought of it as a favor since the agent has a quota to reach for that month. And also, I'll get to afford an iPod Touch for an installment of 24 months at 0% interest. Not a bad investment, I thought.
I reconciled to myself that I'll pay the amount due in full on or before the due date so as not to incur any additional charges. I actually did that for 2 years. I even had 2 additional credit cards. One with the same bank but a Visa and another MasterCard with a different bank.
I did well, until the last quarter of 2012, I started to have difficulty in meeting up my dues. This continued until I finally realized I am actually broke. My income is no longer enough to cover my dues. And since I don't have money and I need to buy groceries or eat meals, I charged it to my credit card. It has become a vicious cycle.
My mom finally stepped in and decided to help me by applying for a loan. The money was used to settle everything which in turn saved me from the endless finance and late charges. I got to breathe again. At least now, I can start anew and just focus on paying the monthly amortization of my mom's loan.
Now I'm learning to fight the urge to shop with my card especially if I don't have the real money to purchase it. I had this mentality before that if I can't pay now, then I can do it later. Hence, the use of credit card. And look where it took me.
I recently saw the movie Confessions of a Shopaholic and actually I was able to relate. I know the "need" to buy something (for me it has been food) and the feeling of happiness after having it. But it is actually a trap. It's a wrong kind of contentment because it is not actually yours. It is a debt. Don't let yourself be fooled because one day you'll just realize that you're already drowning in it.
When I was at my first year at work, credit card agents started to call me. They offered cards with promo like a discounted gadget upon sign up, and so on. I was cynical at first since I had this bad notion about credit cards. I continue to declined their offers until one day, I got persuaded by this sweet, friendly agent. She said I don't have to pay anything since the first year of membership is waived and I can just cut it after a year if I don't want to renew my membership. So I signed up. I thought of it as a favor since the agent has a quota to reach for that month. And also, I'll get to afford an iPod Touch for an installment of 24 months at 0% interest. Not a bad investment, I thought.
I reconciled to myself that I'll pay the amount due in full on or before the due date so as not to incur any additional charges. I actually did that for 2 years. I even had 2 additional credit cards. One with the same bank but a Visa and another MasterCard with a different bank.
I did well, until the last quarter of 2012, I started to have difficulty in meeting up my dues. This continued until I finally realized I am actually broke. My income is no longer enough to cover my dues. And since I don't have money and I need to buy groceries or eat meals, I charged it to my credit card. It has become a vicious cycle.
My mom finally stepped in and decided to help me by applying for a loan. The money was used to settle everything which in turn saved me from the endless finance and late charges. I got to breathe again. At least now, I can start anew and just focus on paying the monthly amortization of my mom's loan.
Now I'm learning to fight the urge to shop with my card especially if I don't have the real money to purchase it. I had this mentality before that if I can't pay now, then I can do it later. Hence, the use of credit card. And look where it took me.
I recently saw the movie Confessions of a Shopaholic and actually I was able to relate. I know the "need" to buy something (for me it has been food) and the feeling of happiness after having it. But it is actually a trap. It's a wrong kind of contentment because it is not actually yours. It is a debt. Don't let yourself be fooled because one day you'll just realize that you're already drowning in it.
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