Credit card woes

Here’s to one of my initiation to the adult world. Although I’m already 25, I should’ve known and must have been using this for a long time. I got my first credit card when my dad opened an account and joined my name with his card. I’ve always used a debit Mastercard where it functions as a credit card but when you use it, it automatically deducts money from your bank account. For me that works fine because I can monitor what I’m spending. But in the US, they apparently are looking for a credit history in order for you to be able to apply for loan for house or car or whatever. I thought using my Mastercard is working towards a credit history but nope, only credit cards can do that. So how am I going to establish a credit history if no credit card company wants to give me a card since they said that I don’t have enough credit history??? Geez that’s just going in cricles. So my dad solved the problem for me. Now I have a credit card and I’m spending like crazy!!!

For me the good things about credit card are: 1. it gives you an “advance money” when you really need to spend it on something; 2. there are reward points or cash back rewards when you use the card; 3. it establishes your credit history and a good history especially when you always pay your bills on time; 4. I don’t have to carry much cash with me; 5. it’s accepted everywhere (at least in the US) especially when you do online shopping.

But why do they say that majority of the Americans are in financial debts mostly related to credit card use? Well I think I’m beginning to find out. Because I have just had my card for over 2 months and I have spent more than my monthly budget allows. Credit cards, I believe, give you that mentality that you can buy anything as long as you’re holding that card. Worry about paying it comes later. I’m also attracted to their card beneift of earning cash rewards every time I use the card. So it actually denotes “keep on spending!” Using my card on gas purchases actually earns me 5 points a dollar spent. With the increase in fuel prices, that cashback reward is really helpful.

Right now I’m trying to curb my spending tendencies. Sometimes I am forced to use my debit mastercard again just to control the amount I’m going to pay in credit card. In addition to, I keep a daily record of what I spend and always calculate them if it’s going beyond my monthly budget. It’s a good thing I’m not earning a lot because more money makes you want to spend more.