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Old 08-28-2007, 09:47 AM   #11 (permalink)
tomjen
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Join Date: Nov 2006
Posts: 47
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Credit cards are a tool - you can use it for good or evil. If the tool use you, it will ruin you. If you use the tool you can build some amazing things with it.

There is no reason to be afraid of credit cards - if you cannot control your spending, you have a problem that you need to work on.

As for the always pay the amount before the intrest kick in, this is sound advice in most, but by no means all cases.

Credit should not be used to by uneeded luxuries - but if your car breaks down paying 18% on a mechanics bill may be a better solution than changing to a job that is closer, but pays much less.

Credit cards can be used to bootstrap a company, allowing you to live a few months on borrowed time - that might be enough to allow your blog to generate enough income that you can easily pay it of.

If you look at Steves income figures, they increase dramatically (when he posted them last year, he had an income of more than 1000$/day). He started this blog for cheap, but had this not been an option borrowing the money might be a good way to start it.

When you consider whether paying 500$ for something that normaly cost 300$ by putting it on a credit card, consider whether or not the increased price is worth it. If really is, then your using your credit card as a tool to make sure your are better of than before.

Absolutes in a single sentence is often useless in the real world anyway.
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