Imagine going to the bank to apply for a loan, and you state that the purpose of the loan is to buy supper. Unfazed, the banker very courteously tells you, “That’s fine, just sign the form. And by the way, you can take an additional amount for the new Anheuser-Busch beer which I am sure you and your friends will enjoy.”

The banker then whispers to you, “eeh, I know I am not supposed to tell you this, but you will be charged 20% annually and 30 percent for late payments.” “That is just great”, you say, and then take the money and walk out.

Sounds absurd, yet that is what actually happens every time one uses a credit card to buy household goods. Experts say that if you don’t have the money to buy your basic essentials, you won’t have it end-month.

Robin Holland of Equifax, a credit reference bureau, concurs. If you don’t have the money to pay for an item now, you probably won’t have it after the credit-card bill arrives, he tells Equifax Website (EFX – news – people).

One may then ask, for what purpose are the credit cards? For Credit cards are very convenient when used with maximum degree of circumspection. Don’t use it for impulse buying, and before you enlist for one, be sure to check out the minimum payment credit-card calculator which will show you how much you will end up paying if you pay only the minimum amount every month.