Credit cards offer home-based business owners a tempting source of emergency financing. They present very serious risks for entrepreneurs in need of operating funds. Some experts compare credit cards to drugs: They offer short-term pleasure in exchange for long-term pain. Once the Credit Card Demon gets his hooks in you, it can be painfully difficult and sometimes impossible to free yourself.

Millions of consumers and business owners are in over their heads with credit card debt, and many others are taking their first steps down the road to financial unconsciousness.

The credit card companies are so good at what they do that they’ve managed to put more than one billion cards in circulation for every man, woman, and child in America. An average of 12% interest on that average of over $8,000 balance comes to nearly $1,000 per year in interest charges that won’t buy a single item for inventory or make one rent or utility payment. What’s worse, those figures are only averages. Millions of consumers and small business owners have sunk far deeper into a financial predicament, with little or no hope of ever getting out, unless they change their ways.

Strangely, credit cards in themselves are not harmful. In fact, used skillfully they can be an important financial plus for the typical small business owner. Without credit, many of our small businesses would not exist. Without credit, most Americans would have no hope of ever owning their own homes or automobiles. Without credit, the quality of life for most people would be far less attractive.

But credit as we know it today has its dark side as well. Credit cards the newest form of credit carries special risks for those who lack the self-discipline to use credit wisely. A pocket full of credit cards can sweep you up in the illusion that you have more money than you actually have and that’s where the trouble begins.

Some of the wise ways to use credit to your advantage include, Keep no more than two credit cards, Win the credit card game by using other people’s money to make your routine monthly purchases, Carry a reasonable amount of cash to pay for small purchases, Know the costs of credit, Shop around for the best deal, Check your credit report annually and Focus on needs, not wants.

The bottom line is by using your credit cards wisely you can reduce adverse effects of credit cards and maximize the benefits by spending wisely, using self-discipline, and paying off your balance as quickly as possible to avoid unnecessary fees.

For more information, visit Credit Card Processing and Merchant Account Services.