Credit cards… they are little pieces of plastic that everyone loves to hate, but everyone loves to use. They are so convenient, and along with that convenience sometimes comes trouble. We all know someone who has used one credit card to pay off others, and ended up in a spiral of debt. They were misled by the easy gratification and did not pay attention to the long-term costs of that debt.
The Skinny on Credit Cards: How to Master the Credit Card Game is a book in “the skinny on” series that covers many of the basics of credit cards. This book is geared toward the person who does not have a lot of experience with credit cards or with debt; we were all newbies, once. I was once a credit card newbie, myself, and while it was very easy to see the great advantages of the card, the hidden costs were much more difficult to see, and it certainly wasn’t in the interests of the credit card company to make it easy for me!
The book lays out the lessons in a very easy to read form. The skinny on books are done in a comic style; the author, Jim Randel, says that he was inspired by Japanese Manga. This makes the book an easy and quick read, which can be easily understood by anyone at any age. The lessons are explained through the story of Beth and Billy, a couple who has gotten into some trouble with credit card debt. Although Billy is the one with the degree, Beth is obviously the smart one.
Some of the lessons include the following:
- Minimum payments mean minimum satisfaction and a lot of debt.
- Watch out for “rebate/rewards“, and don’t get suckered into using a card more than you need to.
- Learn and be aware of your FICO score.
- Learn the strategies for reducing debt.
- Take personal responsibility (and parents, take responsibility for your children and teach them well).
The book also covers the recently passed Credit Card Act.
One downside of the book is that you will be done reading it within an hour or two, and if you already know a thing or two about debt and budgeting, you probably won’t learn anything new here. However, we all start somewhere, and this book is meant for those people.
I would highly recommend The Skinny on Credit Cards: How to Master the Credit Card Game for young people just starting out in college or for anyone getting their first credit card, or anyone starting to get out of credit card trouble. The graphic novel concept helps to ensure that even people with A.D.D will be able to read through to the end.
If you would like to read more, you can order the title direct from Amazon:
So, reader, what are your stories about credit card debt, and have you read this book or any others in “the skinny on” series? If so, what did you think about them? I have carried credit card balances in the past, myself, but I was lucky to not wind up as far down this road as Billy and Beth did.
Financial Cents says
Sounds like a great read for those wanting to understand the ‘credit machine’ better and how to avoid being caught up in it. Well done Kevin!
Cheers,
FC
Kevin says
Yep, I would have recommended it to my 20 year old self. 🙂
DIY Investor says
I just finished reading the letter from the editor for the December Kiplinger’s and it mentioned a “Digging Out of Student Debt” Yahoo story that generated 4,600 comments.
The story apparently came from reader questions, one of which was from a grad who had $140,000 in loans while majoring in history and psychology at NYU. The editor says “you can’t expect 18 year olds to understand what they are getting into by taking out loans”.
Huh? I was borrowing money when I was 11 years old. I must be a genius because I understood even back then what I getting into with my nickel and dime loans.
I would expect a huge market for the book!
Kevin says
I think the reason you don’t expect 18 year olds to understand anything about these things today is because… they don’t. Their parents never talk to them about it and half the time, the parents don’t even understand these issues themselves. The public education system doesn’t do a good job here, either. Financial education has been lacking due to easy credit and boom times that convinced people that easy wealth was here to stay. Perhaps the harder times of the last couple of years are going to encourage people to start paying better attention to their finances, and to teach these lessons to their kids!
Suba @ Wealth Informatics says
I have read this skinny on CC. I thought it was a great beginner guide, easy to read and understand. Will be excellent for high school students, esp. with their attention span 😛 this will be an ideal book. But as you say if you are a responsible credit card user, I don’t think there is a lot new material in the book. I recently got the skinny on creativity, have not read that yet though.
Kevin says
Oh, neat! I also have that one and need to read through it. What I like about these books is that they are very easy and concise reads. They won’t give much value to someone who already knows something about the subject, but for a beginner I think they are useful.
MIke says
Hey Kevin,
I can understand some people might want a “thicker or more detailed book” I really think smaller is better when it comes to something as simple as getting out of debt. It’s not easy. It may take a while. But the concept should be easy to grasp, IMO.
The video makes a powerful point re: the minimum payment being a path to financial enslavement. To that, BRAVO! May we all get that concept early in life and get on the path to freedom!
Kevin says
Agreed, Mike! Too many people forgot that with the benefits of leverage come the downside… which is when your investments don’t perform as expected! It’s no longer the 90s (for stocks) or early 2000s (for RE).
Roshawn @ Watson Inc says
To be honest, I’ve been so disgusted with CC, that I don’t enjoy using them. It’s not that they jerked me around as much as I just find the process of using them somewhat repulsive in so many cases. That’s just a personal preference though.
Anyway, with regard to the article/book review thanks for discussing this book. I’m glad that it discusses things like paying the minimums and strategies for reducing debt. It does sound like it would be helpful, especially for someone who is not used to dealing with CC.
Kevin says
Haha. While I am not disgusted by CCs myself, I can imagine how many might get to that conclusion. They are most certainly a tool to be wielded with caution, and they can lead the inexperienced astray. After seeing what can happen to others as a result of irresponsible use of CCs, it is easy to become biased against them. The real issue here is that the people are simply not educated in the use of these tools, and that is what we need to focus on. Great thoughts, Roshawn.
101centavos says
Good review, I’ve added the title to my Amazon wish list (not that I’d buy it new, though). Our simple rule for credit cards: don’t use one. It’s something we try to drill into the skulls of our two boys. We’ve moved away from credit card use almost entirely, only having to use our lone CC for emergency use when the petty cash (checking) ran low and we had an unexpected expense ( auto repair ). This was because on general principle, I don’t like transferring money out of savings. Since then, we’ve set aside a small cash fund specifically for unexpected costs. Mostly now we use a debit card that doubles as a credit card.
Kevin says
With the debit card, you never have to worry about interest fees. I still view CCs as a convenient tool, but the biggest factor is that you have to be disciplined enough to pay down the balance. CCs are so abstract in that you don’t actually feel that you are spending any money, and this can lead you to spend more than would otherwise be the case.
The Biz of Life says
My philosophy on credit cards always has been if you can’t pay it off in full every month you shouldn’t have the credit card to begin with. I think it is that simple.
Kevin says
I agree with you, Biz! They are fine to use if you can stick to that primary principle.
Barb Friedberg says
Sounds like a really good book and fills a whole. Most young people have no idea the ins and outs of credit cards.
Kevin says
Sometimes wish I could send this one back in time, myself…
Bret @ hope to Prosper says
I would love to buy this for my son, who is only 21 and already has a credit card. Maybe, I will put it in his stocking for Christmas.
Kevin says
Might be one of the best presents you could buy him!
Credt Cards Canada Blog says
I have not read this book, but it certainly sounds like a very handy guide. On the other hand, reading blogs like yours or ours would probably provide just as much information (and probably more entertainment, at the same time).
Kevin says
Haha, good point. If you’re already involved in the blogosphere, you can get most of this info online without needing to buy a book. I think the book does win in terms of conciseness and impact of message though.
Ben says
What a great read. The credit game goes so much deeper than people understand. Educating yourself and knowing how to deal with credit cards will save (and earn) you thousands of dollars.
This is going to be a Christmas present for a few of my friends. I think I read it first though.
Kevin says
I hope the book helps your friends out. Thanks for stopping by!
pinky says
Those who are planning to get credit cards should read the book first. Those who are already trapped in debt should read also so that they get ideas on how to get out of the misery. Personally, I wish I never got to learn to use credit cards in the first place.
Kevin says
I believe they’re best looked at as a form of short-term interest free loan — interest free so long as you pay off your balance by the time it’s due!