Gomestic > Personal Finance

Are Credit Cards Worth The Risk?

Credit cards, convenient or more trouble than their worth?

Credit cards can be more hassle than they're worth. It is too easy for criminals to get access to PIN numbers, social security numbers and other identifying information. Commercials make credit cards sound so enticing, but are they worth it?

Credit card use leads to thousands of dollars in debt every year, not to mention Identity theft and credit card fraud is on the rise.

If you must pay for merchandise and you don't want to use cash use money orders as an alternative payment method. Avoid credit card use if you can.

If credit card use is a necessity, get a prepaid debit card. Prepaid debit cards are safer than ordinary credit cards. Why? because with a prepaid card you can never over-draw your funds. You have access to what you put on the card. In a way it is likened to a prepaid phone card.

With all the technological advances in the world today one should always be careful. Keep all identifying paperwork or cards locked in a lock-box,safe or foot-locker taking them out only when necessary.

Keep your identity and assets safe, and use technology wisely.

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Comments (3)
#1 by anon, Sep 26, 2007
what utter rubbish. my normal bank card has just the same security issues as a credit card so unless i want to do everything with cash and the security problems around having this all lie around at home i cannot avoid the problems of just using any form of card payment.

also people need to take responsiblity over their own spending habits and learn to balance their budgets. credit cards can help immensely for smoothing out cashflow particularly at the end of the month. but over a period of a month if you are spending more than your income, then you are asking for trouble.

if you need to make a large purchase, the consumer has better protection, e.g. booking holidays or other large purchases and 90 days insurance, useful in the case of disputes over services received. with my work and business travel, spurious hire car charges are a common occurence that i use the added advantages of a credit card. one phone call to the card company stops the payment until the issue is resolved, funny how this focuses many service providers. you can't do this with normal bank cards that have direct access to your funds.



#2 by Jupiter, Sep 27, 2007
Anon, The article was written to discourage excessive dependance on credit cards when other options are available
#3 by Jake, Sep 27, 2007
It's absolutely true, i witness people everyday on the radio who are thousands of dollars in credit card debt. There should be a limit that we can control. Debit cards are the way to go.
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