US Consumers Are Becoming Wiser On Credit Use

The Chicago Tribune reports that Americans have borrowed less and paid more on their credit card debts in April.

Likewise, retail sales were said to have dipped and banks received less demand for consumer loans.

This is good news if it means more people are being more conscientious in their use of credit. If you're not careful, there are a lot of ways credit can bleed you dry.

Recently, I came across articles reminding consumers that withdrawing cash against one's credit card is a very expensive habit. If you look closely at the small print, you will see that doing so incurs even much higher interest than making your usual purchases.

Perhaps people have been alerted to these credit dangers by the recent spate of credit defaults, from credit card debts to housing loans. It's time to wake up and take stock of one's financial situation.

So do you really, really need to make that purchase on credit? Can you really afford it?