We all carry credit cards. Well most of us anyway. For those fortunate enough to live without credit cards my hat is off to you. In today’s consumer society using credit cards to help make ends meet is almost a necessity of living.

We use them whenever necessary but do we really understand their function, terms and responsibilities?

In its purest form a credit card functions as a source of disposable income that allows one to purchase whatever they wish, whenever they wish. Within established limits that make up the card. Even if they don’t have the money in the Bank to cover the purchase at the time.  Each credit card comes with its own unique set of terms and conditions.This is where very few of us actually understand the power behind the credit card.

Did you read all that fine print hidden within the credit card statement and agreement? I bet you didn’t. I know I didn’t and very few people actually do read the agreements.

Without reading the agreements how can you fully understand your rights when it comes to credit card usage?

Or better yet what about the rights of the credit card company in the event that you fail to keep up with the terms of the card.

For instance, how much interest can the card company legally charge you on your purchases and when can that interest be levied?

Where you aware that the APR (annual percentage rate) assigned to your card can be adjusted in certain circumstances?

Do you know what rewards are associated with your credit card? Most credit cards have some form of reward system attached to the card. Why? The credit card business is a very competitive business and card issuing companies continue to increase the incentives for you to choose their card over the competitions.

Do you know how the minimum payment is calculated on your outstanding balance? Different cards can use different methods of calculating the interest owed on the card. Minimum payments are designed to pay off the credit card within a specified period of time.

Of course the card companies prefer you to keep an outstanding balance on the card as they make a whole bunch of money from the interest they charge you.

Some good rules to follow when dealing with credit cards are:

Never overspend to the point where you have no available credit left on the card.

Always pay more than the required minimum payment.

Always make you payment on time to avoid being charged extra interest.

Whenever possible pay the balance in full to avoid interest costs.

Use your credit card to take advantage of valuable incentive points associated with your card.

Remember credit is still a privilege – not a right! Abuse your credit and you will lose it.

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I have inculded, one mans life story.  I hope it can help….

I want to become rich. I have tried my whole life to become a rich man. I have built assets up and made risky investments and lost everything. I bought homes and rented them out. I have come up on penny stocks and I have had high paying jobs. One thing destroyed me every time.

I have come to realize that I will never be able to become rich so long as I use consumer debt. Consumer debt is the modern way people become indentured servants. Most British people who have debt live to pay their bills. They work extra hard and stay long hours away from their families to spend the prime of their lives playing the catch up game.
I did this cycle from the time I was about 19 years old until I filed bankruptcy at 35 years old. I have come to realize that the system is stacked against me and the only way for me to become wealthy is to stop paying other people. It is even prophesied in the bible not to go into debt.

My new life consists of simplicity. I don’t pay any debts because I don’t create debts. I know my credit is destroyed from filing bankruptcy but my philosophy is I don’t need good credit because I no longer borrow money. Sure it makes it difficult to buy a home but in order to become rich I need to get creative and putting out large money monthly just works against the dream.

So being creative has led me down a very interesting path. I do own a vehicle but I ride the bus all the time now. I have discovered that I can make enough money to live without borrowing. I also have begun to explore the world of internet marketing. Being that I have much more time on my hands I can pursue the things that interest me and build them up to make money. I only work part time because I am not bogged down with bills.

I take my money and I invest it in stocks and other various investment tools that I now have the time to research which multiplies it to maximize my returns. I also have begun to build websites and offer goods for consumers to buy because I have the time to work on such projects and with affiliates I don’t have to keep an inventory.

Free yourself from debt and live within your means.  Forget your credit cards and save.  If you follow my advice, then you can truly become debt free and happy.