Every adult likes to travel light. The convenience of shopping without carrying an enormous wallet is something this generation has taken for granted. Credit cards are also a huge status symbol. Every adult remembers the glee and joy he or she felt when they received their first letter from some credit card company offering them a card. It proved that they had indeed arrived.

But before rampant swiping of the coveted piece of plastic, we need to ask ourselves some questions. Is having a credit card a convenience - the ability to Buy now and pay later? Or is it a problem, because you are unable to track how you spend?

In the current economical milieu, you are courting trouble if you do not spend smart. Credit cards allow you to buy something now and pay 30 days later. But if you don`t pay the full amount by the due date, the interest rate is exorbitant. The exact interest rates and other details are all in fine print which the average consumer doesn`t bother with. A lot of people swipe their cards and pay the minimum by month end. They can still use their cards but they usually don`t realize that the interest is charged to them the following month. And if they continue to pay the minimum each consecutive month, they`ll soon realize that their credit worthiness is being drained in a systematic and ruthless manner.

On the other hand, credit card provides convenience and safety. It can be used almost everywhere. You don`t need to carry a lot of cash and attract miscreants. It provides flexible plans to purchase products on installments. Another advantage is the reward points offered by the credit card companies.

Despite all the bad press given to credit cards by conservatives, it is an excellent product. It was designed with goodness in mind. But, we humans tend to misuse goodness. Like morphine. It was discovered for pain relief but is used by many as a party drug.

The first thing to do is to understand your credit worth and decide on a budget. Use credit cards with a clear understanding of the fine print. If you feel you will be swayed by impulse buying, Credit Cards are not for you. You are better off without them. Financial Analysis of your current situation will help you determine if Credit Cards are a boon or a bane for you.