Credit cards

Besides the make believe of Hollywood and behind the facade of incredible infrastructures here is the harsh realities of the financial system on which the economy of the country runs. It is easier to get consumed by the credit management than getting a driver's licence.

For the benefit of people back home who assumed -quite wrongly that milk and honey flow on the streets of America; they don't. Most people are permanently on credit card- life -support. Credit cards are small plastic cards with different security features that extends a line of credit – or a temporary loan – any time a consumer uses it to make a purchase.

If the loan or charge is paid back within a specified grace period – usually between 25 and 30 days – then you don’t have to pay anything above and beyond the amount you initially charged; it amounts to a short-term, interest-free loan.

However, if you are unable or unwilling to pay your full balance in that time, you will owe interest on your purchases – money charged in addition to the amount you already owe. That’s one way card issuers earn money in exchange for making these temporary loans.

Credit card interest is generally charged as a percentage of what you owe each month. The percentage of interest you’ll owe each year is your annual percentage rate, commonly referred to as your APR.

Americans and that includes those already marked for deportation by the incoming administration spent $695m on Christmas gifts some days ago, and a large chunk of that will be on the famous credit cards.

In the hand of the financially undisciplined, the card could wreck your credit record and put you where the system wants you-perpetual economic doom.If however you rein your appetite for spontaneous shopping and pay your bills before it is or when due, the benefits of the credit card is just enourmous. Will this work back home? Before I left, no. Now? Ask Mrs Adeosun.

As for the folks who are home on holiday from here and spending to impress in Nigeria should better be reminded that debt is like diabetes; you can only control it by insulin and diet, once you have it. You have it.