Credit cards are both a fabulous and convenient method of paying for goods and services. However, they can be an excellent servant, but a terrible master. If you were to purchase goods for a largish amount, for example $150-$200 you are protected by the Consumer Credit Act so if you purchase does not arrive or arrive damaged in some way, you can approach the lender of the credit card as well as the retailer for breach of contract.
Another great advantage of some credit cards is that you can make money from them, provided you pay them off every month. As you won't pay any interest special 'cashback' incentives can be offered with up to 5% of what you spend.
On the other hand things can get very expensive when you lose control of your spending on your credit card. Like for example, if you are only making the minimum payments back on high interest rate cards. In the middle of a recession, the first thing we must try and do is clear our debts. Start with your most expensive debts and these are often your credit cards.
Recently there as been a hike in card interest rates due to the recession. Some card lenders offer an attractive 0% APR but only for a limited period and after this time has elapsed, be prepared for a potentially high rate of APR. So many people do not release what their APR actually is. Give your lender a ring to find out what it is as you could do a lot better by shopping around.
