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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.

From the time John Biggins, the inventor of a first bank issued card, had his first eureka moment in 1946, credit cards have evolved to become one of the most versatile ways of paying, and this is why.

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.

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.

For many with burned fingers will tell you they didn't realize that things had gotten so bad until very late, because most credit card offers try to sound like they are actually running a charity. Well, they aren't.

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.

Nevertheless, credit cards are here forever, no matter what the doomsayers are telling you.