a few things you have to know about credit cards:
1. the banks GAIN something from you each time you use it, where a 2% is charged to the shops/dealers/sellers of a service or product
2. the banks WANT you to apply as many credit cards as you can, to them is good income from the masses...
3. the banks DOESN'T CARE about how you manage your credit cards, if you get into a debt, EVEN BETTER, they get to charge you HIGH INTEREST RATES in order to pay back those debts
4. have you ever been approached on this new scheme call credit card installment plans? be careful as this is the one that's dangerous... how are you gonna calculate how much you can afford for the coming months? when u are forced to commit to something where the bank helps you pay it first, and you paying back to the bank? Are you so sure the money you are earning now will be enough?
5. installment plans charge their total to your credit limit, yes the whole thing, e.g. a 3k total payment equals to 3k of credit limit, till you pay it all...
6. do you know that credit cards make you spend more? uh-huh it doesn't help u save up more, it does the opposite... healthy for the economy? wait till you cry each month paying back those commitments where it exceeds what you can afford.
7. a few small totals, add them up and they become a bomb in your credit card transaction history
8. learn to say NO to charging credit cards, especially for monthly payments. Or huge purchases. You never know how is the month's total spending gonna be like... remember the 4% inflation every year as well? things doesn't become cheaper, they tend to inflate... the nasi lemak you buy today might go up 30 cents, without you realizing.
9. YES WE NEED CREDIT CARDS... those who don't need, I SALUTE YOU... you are spending way less then we are. Yes CONTROL is the key word here... well ask yourself how good are you at controlling stuffs that everyone say is easy to control? That's a thought... still we better ought to control before we start begging... my advice, keep your credit cards and only use it when it is WORTH using it, when you look at that charge in your bill and agree, "yes this is worth it", ok use it... and those that will give you a "why the heck I charge that for?", better avoid them...
10. Think about the future, about your loved ones, about your family... before you swap that next purchase... think about the lots more commitments for your children's education, house, car etc to come... don't hear the bullshit that people say, SPENDING IS GOOD FOR THE ECONOMY.... to me it's a conmen's piece of bullcrap.