I just applied for a credit card called the POSB multitude card. Okay it's actually a debit and credit together which is like one of a kind, for now but with a very little credit limit. I didn't want to but besides the idea that it's just cool to own a credit card, heh, I didn't think I want to. I know I will never have one because of my pay which I doubt will ever increase that much in future anyway. And this is after I read a lengthy article about how my age group forms the highest number in credit debt owing.
The concept of credit card is simple. Depending on the card, you can have credit limit up to 4X of your salary. It's cool to have one because others may see it as a reflection of roughly how much you are earning and it also increases your spending limit. Unfortunately, credit also means you owe the bank money after you which you will have to settle it, plus interest, when they send you your credit card bill. This is where people get into trouble as they think that they can get by just paying the minimum sum and roll over the amount owing to the next month. The thing is, when they roll over the money, they are charged even higher interest. Then some will take up other credit card from another bank to settle the amount and then later they owe this new bank money.
We're not talking about hundreds of dollars of debt owing but in the tens of thousands. That's a whole lot of owing and they will lose their car or their house to settle the outstanding amount.
It's very scary, I tell you. And then now I think you assume Im making a mistake *sigh*. But I promise to be prudent and knowing me, I doubt I will use the credit card anyway since my own debit card is hardly ever been used. I just don't like to owe money but I thought it will be useful during emergency though. I dont like owing money too. If I use it, maybe near to payday when I run absolutely dry. I see how. Chet, I talk as though they will approve my card application. I hope they don't check my bank balance because it's so miserable..haha. But I think if they did, they may also conclude why I need the card...hrm.
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