Credit cards are a nice convenience. However they are the worst way to borrow money. Credit cards are the most common form of “open ended” or revolving credit. Most people have at least one credit card, and often many more than one. Credit cards are easy to use, they are easy to understand, and they are highly familiar to people.

Credit cards are said to be revolving credit because they charge interest on the money that has been borrowed and not repaid in full at the end of the billing cycle. Credit cards are, for all intents and purposes, revolving credit loans. Credit cards are sometimes simply necessary . Credit cards are not a good option for long-term (greater than six months) borrowing. You only need one card for emergencies and to establish a positive credit history.

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Filed under: Credit Card Debt • Debt Consolidation

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