The Chinese are credited with coming up with numerous inventions including gunpowder, umbrellas, chopsticks, paper and paper money. Lamentably, (from Chinese point of view) the honors of coming up with plastic money went with early American capitalists.

The first bank credit card was invented by John Biggins in 1946; since then, credit cards have, for a variety of reasons, evolved into one of the most versatile payment methods in todays' commercial world.

Once issued with one, the need to carry around unsafe, dirty and bulky cash is significantly diminished. I say diminished because some small scale merchants (who perhaps are scared of technology) will still insist on being paid in cash. Further, credit cards enable you to build up a credit history, but only if you always pay on time.

Some places, like the United Kingdom, allow for reimbursement you if you make a credit card purchase and the items are not in the expected condition, if you make a claim within a set amount of time, usually 2 months or so. Credit cards are very secure, and even if you are attacked and robbed, you can later phone the issuer of your cards and cancel any cards that were stolen. Also, credit cards make it easy to keep tabs on your spending, as they log every purchase.

Do you think the phrase 'credit card works for you' applies to you, or is it the other way around? The answer would be dependant on the way people treat the credit cards, or 'old plastic' as they are sometimes called.

Credit cards offers often are presented in a deceptively good light. Many consumers end up in dire financial circumstances when they use these cards. Advertisments which almost make the use of a certain card seem like charity are often ruses used to cheat consumers out of their money.

And this is not a hate campaign against credit cards.

Surely they have their benefits - in America if you want to rent a car, you got to have a (major) credit card.

But, consider this scenario:

Often you generate an offer in the mail that sounds nice, maybe a new style TV or fridge. But the cost is $2000. But wait, you have a credit card that has a $5000 limit, and without thinking purchase the item. Usually, this is how your repayment schedule will work out. Most credit cards charge a minimum of the total balance, usually being two percent, of the total per month. If the interest rate is 18 percent and you only choose to repay that minimum amount of $40, then $30 of that will go towards your interest and a mere 10 percent towards the actual principle. Furthermore, it will take you 30 years to repay it and you will end up paying over $5000 in interest.

Sounds scary It doesn't have to be. The moral of the illustration is use the credit card the same way porcupines make love; very, very carefully. Be sure to read all the small print when completing credit card apps.

Be that as it may, whatever the doomsday prophets say, plastic money is here to stay.