With credit card, you can eat your world…beware!

Iheanyi Nwachukwu

With your credit card, the world is in your hand. It can save you; it can also destroy. A credit card is a payment card issued to users as a system of payment and it allows the cardholder to pay for goods and services based on the holder’s promise to pay for them.

The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment as a cash advance to the user.

Amid what some experts will say are underlying advantages of using credit cards, the negative side of using credit cards is high. This is because there is greater possibility of the credit card users to live all through his life without investments that correlates his lifestyle. By the way, he is used to the lifestyle that allows him to always spend without having forgetting that there are many ways to increase income by investing savings and spending money wisely.

For this kind of person, there are things credit card companies won’t tell you. Sure, they won’t tell you that they are just waiting for you to screw up; when it comes to identity theft, they are part of the problem; your children are their future; their ‘freebie’ rewards are anything but; debit cards should come with a warning: ‘use at your own risk; paid in full? not necessarily; they are accepted anywhere on the globe, but their exchange rates are from ‘Planet Rip-off’; they close early on payment-due dates; their whims are legally binding; and go ahead and exceed your credit limit — they like that.

Though, many financial experts would say that credit cards can make life easier and be a great tool, but if they aren’t used wisely they can become a huge financial burden. Like most things, there are advantages and disadvantages to credit cards. Knowing some of these can help you decide if you do or do not want to use credit cards.

On the positives, credit cards can make it easier to buy things; credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen; having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as loans, rental applications, or even some jobs; and credit cards can also be useful in times of emergency.

In addition to the benefits listed above, some credit cards offer additional benefits, such as discounts from particular stores or companies, bonuses such as free airline miles or travel discounts, and special insurances (like travel or life insurance.)

Amid these numerous benefits of using credit cards, the negatives are important factors to watch. For instance, some of the disadvantages of using a credit card are that it encourages you to spend money that you don’t have; credit card companies charge you an enormous amount of interest on each balance that you don’t pay off at the end of each month; and like cash, sometimes credit cards can be stolen.

If you do decide to use credit cards, remember these simple rules: keep track of all your purchases; don’t spend outside your budget; pay off your balance on all of your credit cards at the end of each month; and don’t loan your credit or give out your credit card information to anyone but reliable companies.

 Best prices: Where you shop does matter

When looking for the best prices on the items on your shopping list, it’s often a good idea to pay attention to where you are getting your items. In a number of cases, it’s convenient to get drugstore items while at the grocery store, or pick up a couple things for dinner when you stop to pick up your prescription at the drugstore. However, those choices could cost you big time in the long run, since you might not be getting the optimal value for your money.

Shopping at the appropriate store
Anyone who has bought batteries at the grocery store knows that they are very expensive when purchased that way. When you purchase batteries, or cosmetics, or office supplies at the grocery store, you are going to pay a premium. The assumption is that it’s more convenient for you to grab these items at the grocery store than it is to go to another store. And you’ll pay for that convenience.

The same is true of make food purchases at a store that doesn’t normally sell food. Food purchases at Kmart or Shopko are going to be more expensive than buying at the grocery store. Picking up a dozen eggs at the drugstore, while you are getting some of your hygiene products, will add a premium to your final bill.

Compare costs before you grab something. You might be surprised at how, over time, those small expenses can really add up. Make sure that you plan ahead so that you don’t feel like you have to grab something because you don’t have time to shop elsewhere, or because you didn’t plan ahead to stock up on what you needed the last time you were in the appropriate store.

What about super stores?

Of course, many people choose to shop in super stores or warehouse stores that allow them to find a variety of low cost items that fall into various categories. You can purchase low cost grocery items on one side of the store, and then head to other side of the store to pick up electronics, or household goods.

When shopping at super stores, though, you still have to be careful. Many people just assume that these stores are going to have the lowest prices — even if that’s not strictly true.

For some items, the super store or warehouse store doesn’t actually have the best prices. You might be better off waiting for a sale at a different store to stock up.

Another issue that comes with shopping at such mega stores is that it becomes easy to overspend. You have access to so many items for purchase, and it’s easy to find something you want — but don’t actually need. It’s also easy to fall into the “but it’s a bargain” trap.

When you see a great deal, it might be hard for you to pass it up because it seems like such a good price, even if you had no intention of buying the item. Super stores use these bargains to get you to spend more money, and excuse yourself because you got such a great deal.

The bottom line is that, no matter where you shop, you need to be on your guard, and ready to compare prices. Stick to your list, and try to avoid impulse purchases. That’s the best way to save money while shopping.