Technology Innovation

When you think of consumer credit in the UK, the thought of free money may pop into your head. Unfortunately, the truth of the matter is consumer credit is anything but free and can be very costly if not used in a responsible way. It is key for us, as adults, to learn to use consumer credit responsibly so we can minimize the impact of our debt on our families and society as a whole. Also, we need to learn so we can effectively teach our children the proper way to view credit cards.

The world, post World War II, saw booms in population, technology, innovation and debt. Where our grandparents and parents were taught to be frugal and avoid accumulating consumer credit debt succeeding generations have wanted more comfort and more buying power at the cost of peace of mind. “Keeping up with the Jones’” is a saying surely most of you have heard, but what about “living within your means”.

Even non-Christian and even atheistic or agnostic people cannot argue that the “love” of money can lead to all sorts of problems. Money is a necessary to survive in our current society. We have to work and earn money so we can purchase our food, clothing and shelter. The problem lies in desiring what others have and seeking to have more and more to try and find happiness. Many turn to the irresponsible use of consumer credit to fill their wanton need to spend and have “things”. What ends up happening is you find yourself struggling to maintain a lifestyle you cannot afford. So instead of using your time and money wisely you squander it and end up losing everything thus “stabbing yourself all over with many pains”.

So what is the proper place for consumer credit UK? Consumer credit is necessary to build up a reputation and thus a credit score in the consumer credit world. This score when maintained well will help you purchase a car, a home and even get a job. It shows responsibility and maturity.

How can you use consumer credit to increase your credit score? If you have a credit card or two make sure you can pay off your purchases monthly and never extend yourself more than six months. One of the worst things you can use consumer credit to buy is groceries. If you don’t have enough money in your bank account to purchase your groceries from month to month there is a serious problem. Either you need to look into public assistance if it’s available or you need to look at your spending habits on other things. Groceries being consumable have no lasting value and the purchase will be accumulating ungodly amounts of interest. Why risk your family dwelling or vehicles and other goods being lost because you used your credit cards to amass debt because of groceries?

Always pay more than the minimum payment required by the credit card company. This will pay your account down much faster and keep your purchases from accumulating too much interest. Most credit cards are approaching interest rates of 30% which can rack up very quickly. If you have a credit card account that you’ve used for large purchases then opt into the credit card company’s insurance program that will pick up the tab for your account should you lose your job unexpectedly. Given the recent trend in job loss worldwide this will keep your consumer credit from becoming a nightmare. But use the provision wisely – don’t abuse it.

Try to think of credits cards as a protection and not a luxury. This will help put them in the proper place in your life. Should you require extra funds for an emergency expense consumer credit cards can be a much needed lifeline. Your car or house may need a major repair that would leave your family struggling and a credit card could be the saving option. Try not to use them for everyday expenses.

Department store consumer credit cards are a clever way to increase customer loyalty and spending. Use these carefully. It can be very easy with offered discounts and sales exclusive to card holders to allow you’re spending to get out of control. If there is something you and your family needs or can pay off before the end of the billing cycle then take advantage of the discount. Remember, if you don’t pay off the bill immediately the 15% discount can turn into an extra 15% cost because of the 30% interest charge to carry it on the account.

In conclusion, try to be content with the things you have. Relying on consumer credit to increase your quality of life could leave you worse off in the end. Using credit responsibly can increase your credit score and thus your ability to make large purchases like a house or car. Consumer credit should be viewed as an emergency only pipeline and taken advantage of only when we know we can pay off the debt immediately.

By: Shannon Michael

Tags: All Sorts, Booms, Consumer Credit, Credit Cards, Credit Debt, Credit Score, Current Society, Evils, Food Clothing, Free Money, Generations, Grandparents, Keeping Up With The Jones, Living Within Your Means, Maturity, Peace Of Mind, Technology Innovation, Time And Money, Truth Of The Matter, World War Ii