Credit Cards: The Good, the Bad and the Ugly
Credit cards have become a way of life today for most of us. They are easy to obtain, easy to use and, unfortunately, easy to abuse. Credit cards are essential if you want the convenience of paying over the phone or Internet for a variety of items. The credit card industry has also become a competitive market, which means that consumers can benefit from a variety of special offers like zero interest for a period of time or rewards programs that will offer something in return for use of the card. Responsible credit card use can even help you build a healthy credit report that will make it easier to obtain loans for cars and houses. You know that credit cards are the payment means of choice, but you want to be savvy about applying for the best card for you. How do you know which credit card to choose?

Comparison Shopping
First, it is important to note that not all credit cards are created equal. In fact, accounts can vary greatly in terms of fees, interest rates and potential benefits, and comparison shopping can save you money in the long run. After all, why would you want a credit card that costs you £50 a year to own, when another card will offer you the same service for free? Interest rates are another variable that can make a big difference in your pocketbook over the long haul. It is also a good idea to research the policies on late fees. While it is very important to make payments in a timely fashion, there is always a possibility that mail can be delayed or a payment can slip through the cracks for a few days. No sense in getting charged an arm and a leg for a simple mistake!

Responsible Credit Card Use
Credit cards may be an essential consumer tool in our culture today, but it's important to keep in mind that too much of a good thing can lead to disaster when it comes to credit card use. You don't have to look far to find people who have racked up serious debt and destroyed their credit rating by abusing the credit card privilege.

The reason why is a lesson in basic mathematics. Let's say you make a £1000 purchase on a card that charges 18% interest. If you make monthly payments of £40, it will take you 2.7 years and £263 in interest to pay off that balance. Remember that credit card companies are in the profit-making business and their biggest profits will come from those who charge a lot but pay a little. Don't line the pockets of the credit card companies by immersing yourself in a credit card balance that you cannot afford.

Credit cards can be a wonderful tool for the consumer as long as they are used responsibly. Shop around for your card, spend wisely and pay those balances off as quickly as you can. That way, your credit card won't become a stumbling block on your road to financial freedom.