Why Credit Cards are not worthwhile

Being in debt is a bad idea and getting out of it is imperative. Between bad credit loans, the worst may be debt built by use of Credit Cards , as it’s purely based on consumption.

This type of debt funds your luxury purchases, things you do not need and generally supports a bad economical pattern. A pattern where you spend more money than you have!

Furthermore it is obvious the business model relies on getting the client hooked. The cards are promoted through loyalty programs where you get points or similar in return for using their services.

But really – get sensible! If they can offer you cash back – then they are earning the money somewhere else!

There is no chance you are outsmarting billion dollar companies on their business area… If you still believe so, then you need to get smarter.

Credit Card Challenges

Debt breeds debt

Using Credit Cards you may already be in the hole. Human psychology lets us dig even deeper and spend more money, although the logic thing to do is to stop spending. It is a defensive reaction where your mind tells you it is OK to continue because you are already i debt.

However with a Credit Card it is easy to exceed your actual funds and just keep spending. This is how people end up with 10-30-90k debt at high annual interest (APR).

Prices increase with Credit Card Debt

Even though you go on a sale, you may end up paying more than the advertised price. Not to the vendor, but to the issuer of your credit card.

With the annual interest rates at 10% in most cases, you need to add that on top of your price in the shop. Assuming you spend 1.000$ you will end up paying 100$ for the favor of lending the cash short term.

Debt will eat away at your future

All of us have goals and ambitions, but debt eats them for breakfast.

Every amount of interest you pay could have been invested and returned a percentage continuously.
Instead you are paying someone else for their investment in a money system and providing short term cash.

Get rid of that behavior and you will realize your dreams much easier!

MasterCard Example

Going through the MasterCard 2017 Annual Report it should be obvious, that MasterCard earns a significant chunk of money on supporting your consumption.

The only use case is convenience, so you don’t have to carry cash.

However the end-result is a significant of over consumption, due to availability of money that you do not have.

I am not holding anything against MasterCard. This is just to exemplify of how the business of Credit Cards add to your expenses and defers your journey to Financial Freedom.


This is the kind of company you want to invest in!

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