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How many credit cards do you have? I’ll admit to having several. A pair of them were sent unsolicited by Maybank with whom I have a savings account. Recently, Citibank sent me a Gold Card in the mail, a free upgrade from my current Clear Card. Whenever you go out to the mall, chances are you’ll be ambushed by someone pushing some credit card brand. It is such a lucrative business. But what are its implications on the consumer?

For me, credit cards are a convenience and nothing else. I only ever use credit cards for purchasing goods and fuel, paying the bills online, and picking up the occasional tab. All are usually planned expenditures. There is little else that would entice me to bring out the plastic from my wallet. I absolutely abhor making large compulsive purchases on credit.

I do not enjoy being in debt and I hate paying interests. When you’re in debt, you’re essentially working for the party you owe. Whatever income you earn goes to paying them off first before you actually get your own share. Think of credit cards as taking a loan from a bank. One which often charges up to 18% interest per annum!

Banks are only too happy to get you in trouble. Trouble for you means money for them. They introduce schemes (or rather scams) to entice you to spend money that you do not have. Credit transfer schemes are by far the worse. I’ve had telemarketers spamming my mail and phone, pushing the latest offers. They make the deal sound sweet but never reveal the conditions and potential pitfalls that come with it.

According to the latest credit card news, some 25% of UK credit card holders have transfered credit at some time or other. While this study was done on UK residents, I’m sure a similar trend is true across the globe.

On the off chance that you ever find yourself deep in credit card debt, Credit Cards UK has some pretty good general credit card advice on how to resolve your problems.

With banks making it increasingly easy to acquire credit cards (they are giving it to children who have not even begun to earn a wage yet!) and a global trend of debt, it is important to take charge expenditures. My parting advice for credit card holders is to mind your spending. Only make purchases on credit when you have ready funds in the bank to pay off the month end balance. Never opt to make the minimum payment. Compounding interest alone will start you on your way into a deep hole. Spending beyond your means will bury you deep inside.

Here’s to a debt free future.

This post was brought to you by Cerdit Cards GB