Credit Card - A debt builder

Hi Folks, Its been quiet some time now I had posted. Was busy lately in examining something we often tend to ignore.

Hey there, All techies.. Its good to be honored when you work and grow with a company with good repute. We all like (or un-noticeably) accept calls from various Banks/Financial institutions asking us to get a Credit card.

Back in 2006, I presumed owning a Credit card is a prestige issue. Often it is, when we have the so-called Gold Credit Card, Platinum or Titanium. Wow!! Sounds good. Don't you think so?

I had an account with one of the renowned Bank. I was happy-go-lucky with my Debit card in place until one day; a lady from the Credit Card department of the same Bank called me up. She was polite. When she started with "... Good Morning Sir! You are one of a few privileged customers of the bank..." I thought certainly this is the bank which has recognized my long relationship and is now rewarding me with a GOLD Credit Card. I was impressed. And I am sure everyone of us is, specially when we are new and just started our career.

To make things more beautiful, she said "Bank is pleased to select you and reward you with a GOLD Credit card" now who wouldn't be interested. I would. "The process is specially simplified for you, its just one signature and a photo which our executive would require, and you'll get your card by post in just 10 days". 10 days, did I hear it right? A Gold credit card.. I accepted.

Things were good, I was very happy owning a Gold Credit card. After all; it was a age of plastic money. I couldn't have got anything better - I thought.

At first, I started spending small bits on my Credit Card. I used to maintain it well by paying everything the statement showed. Until one day, I decided to get myself a New Nokia mobile phone which was best in the market then and guess what.. A Gold credit card would be the best way to pay for it. I did. Just a day passed and I received a call from the Credit card department. They were happy to see my transaction - I assumed. Yes! Indeed! All they wanted was to make this purchase of mine a simple -no-EMI loan payment conversion. Sounded good, I calculated the amount I needed to pay in 6 EMI's and it totalled up to exactly my mobile phone purchase. I was happy; I asked them to convert this to EMI. Although I had the money and I could have afforded the new Nokia mobile phone. Now here's the catch.

Other transactions were regular on my credit card, just asusual. but with the EMI payment each month, the credit card bill was way too much for me to offord each month. Now I realised, that Credit Card is beilding debt each month for me. And I am bound to pay it; if not, I'll be charged their so called simple finance charges.

Now I knew, each time I spend with a credit card I had a Loan to the end of the month to be paid. It was this simple. Specially so, in my case, it was a Loan for 6 months. That means I can not get rid of the credit card for six months. And if i fail to pay the total outstanding amount for even a single month, i'd have to pay the extra Finance charges.

So Credit card is good, so far we do not use them. Now I prefer my credit card to stay home. I keep it in a safe place and do not carry it with me. Each time I go to the grocery stores, I purchase using my debit card. At least I am happy it wouldn't create a debt at the end of the month.