An Explanation of Credit Cards and Related Issues  By: , dated
January 25th, 2013  Credit cards are an extremely useful way of
paying for products and services. They are often more convenient
than cash or checks, and they are almost universally accepted
(including over the phone). Additionally, they are a great way
for you to establish your creditworthiness. And some cards offer
additional benefits, such as rebates, frequent flier miles, and
insurance.  But credit cards are a mixed blessing. They can
encourage excessive spending (which often results in serious
financial pain for those who carry balances). Also, the interest
starts accumulating immediately for new purchases on credit
cards with balances. Additionally, unlike most loans, credit
card debt doesn’t have a required repayment schedule, which can
be a temptation to pay only the minimum amount required and
never pay off the full amount owed. The system is designed this
way; credit card companies make most of their profits from
cardholders who pay just