Girls and Credit Cards – Good or Bad?

I find this question rather a pertinent one. I’m a girl. I’m also rather rotten with credit cards. For that reason, a light went on in my head when I finally learned what I like to think of as The Pain Theory.

For those among you (a mere few I’m imagining) who haven’t hung on every word of mine so far (you’ve been sick, death in the family, you suddenly lost all sight- all of those reasons pass. If none of the above applies, exactly why haven’t you memorized all my articles?), I’ll do a quick onceover.

The pain theory of credit cards

The Pain Theory basically suggests that buying something is a showdown of emotions. The instant pleasure of a purchase versus the pain of handing over the money to acquire said instant pleasure. This is where credit cards come in (boo hiss from the audience please).

Credit cards delay the pain, but provide the instant pleasure. If you’re disciplined and conscientious, then that’s not too big of a problem. If you can pay off your credit card at the end of every month, then it’s a wonderful innovation that can be very liberating. If you’re not disciplined, it can the bane of existence.

I know I shouldn’t blame credit cards for what is essentially, my own personality defect. But sod it. I’m going to blame it anyway. It’s a pretty easy target when it successfully manages to make my net worth a red mark of deficit..

Is it because I am a girl?

So does this terrifying slide into debt have anything to do with the fact that I’m a girl?

Those in marketing certainly seem to think so. As soon as women entered the workforce, they were greeted with specifically tailored credit cards. My personal favourite was advertised with the tagline ‘the Man don’t get it’. The cards look good, and are coupled with a wide array of benefits, such as free access to a gym or a female wellness clinic.

These cards were suggested as the next step to freedom, and yet recent Australian data found that 80% of women had debt and just under half of that debt was due to a credit card. Of the women who had credit card debt, 56% felt they were going backwards financially.

It would seem that once you have credit card debt, you have no ability to save or invest because everything goes into trying to pay off the monthly payments and the interest.

So whether you’re a guy or a girl, if you’re not balancing your credit card, here are a few tips to help you out.

1. Recognize that credit cards obviously don’t represent real money to you Try and spend only cash for a month. Extend it to three months. Don’t stop paying off your credit card in this time.
2. Consolidate your credit card debts onto one low-interest credit card. Or, as you pay off one credit card, get out the scissors and wreak your revenge on the bit of plastic that got you into this mess to begin with.
3. Confront the reality that you’ll have to pay off a credit card debt for 15 years if you just pay the minimal repayment. Find some (legal) way of finding the money to pay above the minimum.
4. So are girls just bad with credit cards? The jury is still out. Right now, credit cards certainly aren’t working for a lot of women. But with a bit of financial know-how and a dash of discipline, my sisters and I will be well on our way to a debt free (and potentially credit card free) existence.

Does your credit card work for you?

How do you manage to control your credit card spending?

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