CREDIT CARDS...YEA OR NAY?

I used to have a handful of credit cards. Not that I used them all. I mostly stuck to the one which offered cashback for almost every purchase made. 

The cashback used to come to me in a cheque via snail mail. Now, it just gets offset from the current bill. On top of that, I clear my bills more often now. As and when there are purchases accumulated, I make some transfers via AXS online.

But I have also heard some stories on how some people get by with paying the minimum $50 just to roll over the payments at 24% interest. I cannot stomach that. Someone reminded me that is how some people live from pay cheque to pay cheque. Some even use credit cards as unsecured loans for big ticket items like luxury watches or even to pay for weddings.

All's well and fine if one could pay up on time. If you are not able to, I would suggest saving up a bit more before making that big purchase/decision.

Minister Lawrence Wong in a parliament reply to MP Foo Mee Har in Mar 2015 on her question pertaining to individual indebtedness - "However, an estimated 4-5% of borrowers may be above the 12-month borrowing limit." 

I dread the day when these 5% fall through the cracks. It would require much resolve and effort before one could crawl back to light. 

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