I’ve been using credit cards since I started working and so far I’ve had no problems with them. I enjoy the convenience of having credit cards mostly because I dislike carrying around too much cash.

With the increasing competition between financial institutions, there are even more benefits attached with owning a credit card. Many merchants are collaborating with these instutions to offer discounts for card holders and monthly instalment payment options for the sale of high value items. Financial institutions also offer attractive rewards programs for their credit card users to entince and maintain users. Additionally, the approval criteria for owning a credit card has also become less stringent, making it possible for many people to own one.

Are credit cards good or bad? I suppose that would depend on who uses the credit card. When used with controlled spending, there are many benefits of having a credit card. The main danger of credit cards lies with the temptation to spend money we don’t have. Often the users that find themselves in trouble with credit cards are those who have not been able to curb spending the money they don’t have.

How can one avoid falling into the debt trap?

• Maintaining personal monthly budgets to keep track of spending and ensuring that one doesn’t exceed the limits.
• Paying back outstanding balances within the following month.
• Keeping up to date with credit card news and Credit Cards GB for the latest on credit card advice

This post was sponsored by CreditCards GB.