CANADA CONNECTION: Down With Credit Card

FINANCIAL MONSTER – Mortgage loan, car loan, personal line of credit loan, school loan, farm loan, and business loan are among the financial assistance being offered nowadays by various Canadian banks to its clienteles allegedly if only to help them manage their budget at a less interest rates.

With any of these loans, Canadians would be able to have elbow room in their financial obligations, let alone of the high interest, and options while adjusting to their needs for house, car, business, and other requirements in living a comfortable life in this country of milk and honey.

But while these loans afford Canadians an access to cash at easy payment terms, yet a loan can only be availed upon proof of good paying record, as shown by the points earned in the Credit Bureau, with having a Credit Card.

Having no Credit Card will give loan borrower Canadian a hard time of availing a house, car and other loan assistance. Indeed, Credit Card gives a lot promises vis-a-viz financial convenience. Apart from being cashless in shopping and giving ease of paying bills, and withdrawing money thru AtM, Credit Card lures would-be travellers as they go on vacation spree around the globe, what with an access in any businesses and banks internationally.

On the other hand, behind those promises and advantages of having a Credit Card there’s a serious consequence and repercussion that one should think carefully and conscientiously.

Just as hidden fine prints in bank loan are kept unexplained to borrowers, Credit Card application paper is as unclear as muddy water in the glass that one with a blurred vision will find it hard to scrutinize lest the application will be declined.

But the crux behind having Credit Card is tantamount to coddling an economic monster whose hand always ready to grab the pocket or bank deposits eventually causing bankruptcy let alone pauperization of the card holder.

Credit Card is seemingly causing financial trouble due to the skyrocketting of compounded interest rate to as high as 25%, not to mention the surcharges, penalties, and management fees. If the cash withdrawn isn’t paid on time, the balance due is further charged with additional interest to the extent of causing tremendous deficit, as the accrued amount due for the month hit excessively bad the paystub.

And, while you enjoy carrying a Credit Card in your wallet, don’t get caught with your pants down when during the anniversary date of the Credit Card an annual fee of more than a hundred bucks is visibly printed in the statement of account.

Those Rewards Points promised to provide savings for travel or payment for merchandise is nothing but like a fishing bait for the loan borrower to fell hook, line and sinker.

Hence, when that thin plastic card comes in the mailbox, think deeply with heart and mind just as holding the ball prior to tossing it into the basket.

Credit Card is apparently the tool of business syndicates to immerse anyone in the quagmire of financial misery or impoverishment.

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FRUGAL LIFESTYLE – In liue of having a Credit Card, a sound fiscal management of earnings is the most appropriate option need to be considered if only to keep both ends meet for the family.

Just as cost efficient spending is advisable, budgeting the earnings for the purchase of what is needed rather that of what you want or like to satisfy luxurious social lifestyle is an approach to frugality that attain peace of mind vis-a-vis like hitting the head with a piece of stone or banging it on the wall.

Acquiring a Credit Card is only an option towards financial necessities and in case of emergencies, a close friend say. But with that thin plastic card in your wallet, there’s always a temptation for extravagant and exhorbitant shopping, especially having sufficient credit limit, as the likelihood of over borrowing or withdrawing too much cash on line will be inevitable.

For that matter, apart from being conscientious and cautious in spending the money which is not yet in your pocket at the moment, self-discipline to overcome the temptation of spending like there’s no tomorrow shall be in the mind of a responsible income earner, be a breadwinner or an autonomous bachelor, lest suffering a financial crisis in life.

Happy shopping!* (Dan Cajurao)