Chinese people invented many helpful things such as gunpowder, paper money, chopsticks and umbrellas. Unfortunately as per the Chinese, they did not devise the idea of using plastic in the place of money. We can thank early American capitalists for that idea.

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.

Most major stores today will take your credit cards, so you don't have to haul large amounts of unsecured and unclean currency with you. The only exception is the occasional small store, which only accepts cash. Also, by paying on your credit card in a timely fashion, you build a positive credit history.

In some countries such as UK, if you buy goods using a credit card and the goods turn out to be faulty, they are usually insured for a period of time, say two months, and you can be indemnified even for total loss. Credit cards are safe, and even if gun-totting miscreants help themselves to your wallet, you can make hit back by simply calling the credit card company and canceling the stolen card. Another thing going for credit cards is that you can keep track of your transactions, and it's thus easy to keep track of your expenditure.

Does the credit card work for you or do you work for your credit card? Most people's answer to that question will depend on how they treat their 'old plastic' as credit cards are known.

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.

However, think about this situation:

You receive an offer in your mail that sounds good, maybe it's a new generation TV or a fridge. But it costs $2000. Oh, but you have a credit card with a $5000 limit, and you immediately purchase your merchandise. Typically, here is how your repayment schedule will play out. Most credit cards charge a minimum of total balance (usually 2 percent) of the total per month. Assuming the interest rate is 18 percent and you choose to repay the minimum amount of $40, $30 of that will go towards interest and only 10 percent towards the principle. As a result, you will take 30 years to repay and end up paying over $5000 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.