Credit cards

Hey, your an American right?  Time to sign up for the largest maximum credit limit possible. Spend, spend some more.  Credit cards are no small thing in our society.  Everyone can be tempted to "master the moment".  But the price may be very high.  Interest rates are among the highest out there.  Only payday loans carry higher interest rates.  But they can be a godsend in an emergency and can even be a smart way to pay for things.

Credit cards usually offer pretty good protection against fraud.  Debit cards do not.  So when making purchases online, especially with unfamiliar websites, you may want to use your credit card for that reason.  Also, some cards offer up to 1% cash back, and a 30 day grace period with no interest.  So if you pay for things you'd be buying anyway, then pay it off in full every month, you can save money.  Also, as long as you pay the balance in full every month, you may enjoy things like frequent flyer miles or other promotions from the various companies out there.

Of course, it is a bit of a trap for many people considering that 55% of Americans carrying an ongoing balance on their credit cards.  Once you get in the habit of using them, an emergency, or holiday will tempt you to spend that extra amount, and there you go.  A balance with a tiny monthly payment.  You payment is small enough that it seems no big deal.  So it's easy to spend a little more.  It's hardly noticeable on your statement, but the problem is that the minimum payment will never get the thing paid off.  You will be paying them forever.  So be strong.  Never carry a balance month to month.  Always pay it off monthly, or just wait until you have the money you need.