Credit out , Cash in.

I sometimes wonder when and how did the term "credit" come about. Was it invented by some merchant that didn't need the money but wanted to get rid of his goods? I aren't sure how it all came about but I sure know in today's context, a credit can be useful and can also be deadly.

Credit comes in many forms nowadays, from the traditional rectangular credit cards to cheque books with overdraft facilities. Should you want to find out more, just hit the banks and you will find heaps of advertisement promoting the various credit facilities available. Not forgetting the fabulous prizes one may win should he choose to sign up immediately there and then.

Recently in the local newspapers, we read that banks can now allow students with no income to apply for credit cards. Can you believe this? Credit cards for students with no income. Is that insanity or another method of teaching children from a young age never to overspend and should they ever overspend, the consequences could be bitter? I don't know any reason for such a move to target students except that of banks wanting to profit not only from those with income but also those without.

What made me want to write on credit issues? Simple. I just opened up my credit card bills and was shocked to see the figures staring in my face, telling me its pay back time. The figures were correct, no discrepancies. I indeed made those purchases and had those fancy meals without the need to pay cash. All I had to do was flash my card and leave my signature behind. Painless process - at least for that moment.

The painful and torturing part comes when you have to open up your bank book, make some calculations and find out that the remainder of what you own is not enough for you to live by the next ten days. You suddenly feel like a depressed soul. Thoughts enter your mind, saying ' What if I didn't buy that Prada bag or I shouldn't have had my dinner at Equinox? ' All the 'what ifs' and 'I shouldn't have' would come haunting you. Its 'buyer's remorse' or 'cognitive dissonance' in action. The American Marketing Association explains these meaning as "The insecurity that a buyer feels about the appropriateness of the purchase decision after the decision has been made."

Often, debts build up and the struggle to pay it off seems so tiring. Interest owed, principal sum snowballs and you know you are bound for a rough journey ahead. I am sure many of you out there have experienced such turbulent times before. For those who have crawled out of it, am sure you learnt from your mistake and swear never to do it again and for those who are still struggling, hang in there, your crucifying time will be over soon.

Its always important to believe what we already know,Cash is King and Credit was never in the dictionary of the Royal family.