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Beginning of money is known as a result of difficulties in the exchange needs. In the past, needs to obtain the desired goods or services used the barter system. This barter system is a system of exchange between goods with goods or goods with services. This system is a first known in the trade world, but was abandoned because of the many obstacles in every exchange.

Some of the constraints in the barter system, among others:

1. It's hard to find people who want to exchange goods in accordance with the requirements.

2. It is difficult to determine the value of goods to be exchanged to items needed.

3. It's hard to find people who want to exchange goods with services they have.

4. Difficult to obtain the desired goods in quick time.

To overcome these obstacles, then the experts think about a tool of exchange that is more effective and efficient. And the medium of exchange is called money. Money is a tool that is used to exchange goods and services and generally recognized in some particular region. Money not only as a medium of exchange, but also has other functions as a unit of account, hoarders of wealth, and as adebt standard.

In modern economy, money plays a very important for all social activities in the community. Money has become a necessity, even becoming one of the determinants of stability and economic progress of a country. To meet the need of money, the government of a country through the Central Bank create money, and keep the money supply remained stable. Distribution of money to the community is through commercial banks.

The benefits of money are:

1. Simplify and accelerate the acquisition of goods and services desired.

2. Facilitate in determining the value of a good or service.

3. Streamlining the process of trade widely.

4. Used as a place of amassing wealth.

I was driving the car with my wife on the highway when the car turned the radio on the credit card commercial. The song is a re-composition of an old song and cool enough to listen. There is mentioned, if you frequently use a card, you could have chosen his own gift.

Interestingly, a few days later, I received a letter from a mother. She says she has eight credit cards that are all active! The number of bills were all already almost reached the limit. Well, she almost always run out to pay their credit card every month.

Interesting is not it? On the one hand, there are banks that absorbed advertise and encourage people to actively use credit cards, but on the other hand there are people (and I'm sure not just one person) stuck with a collection issue credit cards.

So, who's wrong here? Bank issuing a card or the card user? This article will discuss the issues of what can be done by the credit card holder if not careful.

First of all, we must realize that credit cards were simply a means of payment. That is, the card functions is the same as the cash you use to pay a transaction. The difference is, the card is a "temporary replacement" of cash. If you buy goods worth USD75 and pay by credit card, the bank issuing card will charge USD75 at the end of the month. Thus, the payment is not made at the beginning when the goods purchased, but when the bill comes later.

Why have this hold a credit card? The main advantage is only one: You do not need to carry lots of cash every time you make purchases of goods and services. Imagine if you have to carry around cash USD500 to USD1,000 in your wallet, while you have to frequently travel by city bus.

Back to the bill earlier. What if you do not pay off at once? There is charges you should pay. It is about 2 to 3.5 percent of the amount of the unpaid bills.

If you do not want to pay off your bills, credit cards usually provide facilities in the form of a minimum payment provisions. The amount varies, approximately 50-10 percent of the amount of your bill that month.

Problems usually begin to appear when you start to get used to are reluctant to settle the bill in full. You only pay a minimum bill each month. While the frequency and value of credit card usage is not reduced but actually increased.

Example, the total usage of credit cards in June was USD1 million. When the bill came, only paid USD150,000. In July, the total usage is USD1.5 million. When the bill arrived, the payoff of only USD250,000. In August, total usage is USD2 million. When the bill arrived, the payoff of only USD350,000. So it went.

Well, because every amount not repaid will be charged interest of about 2 - 3.5 percent per month, then at a certain moment, the number of bills will be very high so that you can no longer afford to pay it off at once. When the number of credit cards you have are many, then the more difficult you to off the hook of bills.

So who is wrong? Is the credit card issuing bank? No, The user is. The problem often lies in the user's who own card. Many people consider credit card as a means of putting additional money. So, in their minds, have a credit card with a limit of USD 4,000, for example, is like an additional income of USD4,000.

Is that correct? No. The card is just a tool to lieu cash. Each time you use the card, meaning there is less money to pay the price of goods or services you buy.

Indeed, there are some credit card that adds value to the card, such as various insurance, electrical goods, up to a free holiday abroad. Good, but still you should be aware, a credit card function just one: a temporary substitute for cash.

For those of you who currently stuck with a credit card problem, do not blame your card issuing bank. They were not anything wrong. Do not blame yourself too, because let's just say yesterday that you did not know much about the strategy of using a credit card. What should you do is one: slowly pay off your bills. Contact your card issuing bank because they can provide solutions that best efforts for your redemption.

Mostly, the problem of credit card use often arise because of lack of proper systems of financial management in the family.

People can save money, and also can borrow money in the bank. Motifs of loans are different for societies. There are people who loan money to open a business. There are also people who loan for home renovations, buy new cars, buy computers and so forth. The difference of this motive makes the bank create a variety of loan products. Each product is created to fulfill different purposes. Basically, there are three kinds of credit products. Namely:

1. Business Loan

2. Consumer Loan

3. Multipurpose Loan

Business Loans are loans used to funding the business so as to produce something productive, such as trade, home industry, business consulting services, and others. If you have a business that seems prospective, you can come to the bank and loan money for funding your business.

Consumer Loans are loans used to buy something that is consumptive, such as buying a home or personal vehicle. Two consumer credit which is quite popular is the Home Ownership Loan (mortgage) and Vehicle Credit. Of course, because the money will be used by customers for consumptive purposes, then the risk for the bank that its customers can not afford the loan will be larger. So that in general interest rates charged to customers for Consumer Credit will be greater than the interest credit for business purposes.

Besides the two types of credit earlier, there is also a Multipurpose Loan. As written in his name, Multipurpose Loan is a loan that can be used for any purpose. It can be used for consumption or for business. One most popular in multi-purpose loan is Non-Collateral Loan. Do not borrow money from banks usually have to wear a collateral?

Yes. In general, if you want to get loan, you have to pledge one of your own property to the bank so if you are not able to return the loan, the bank will confiscate your property which is guaranteed. Surely the value of guaranteed goods must be greater than or at least be equal to the value of money you borrow. But on Non-Collateral Loan, you do not have to submit guarantee items to the bank. You are only required to have a certain amount of income each month and submit a proof that you are indeed correct for the amount of income required.

Some of you may have read Donald Duck comics. Donald Duck has a very rich uncle named Uncle Scrooge. Uncle Scrooge is an extraordinarily rich so that he could build a huge warehouse that can be used to store all the piles of money, both currency notes and coins.

So much money he has, so Uncle Scrooge is portrayed as a greedy person.

This article certainly is not going to discuss about Uncle Scrooge and piles of money. But when we talk about the bank, it could be said that much money may also be owned by the bank where you save money. Even so you do not have to worry about piling all his money in the bank like Uncle Scrooge.

Most of the money in the bank is the customer's money. If banks keep all clients' money in one place, meaning the money is not productive. In fact, banks also need to find revenue in order to pay interest on savings and deposits that you store on them. That is why, the bank then "throw" the most money back into the community in the form of loans (credit).

For example, if you save money USD 10 million in deposits, the bank promised to provide an interest rate, for example, 13 percent per year. By banks, in fact money USD 10 million will be "thrown" back into society by way of loan to those who need (such as people who want to open a business or want to buy an item). Loan repayment terms are accompanied by interest rate greater than 13%, say 18 percent.

So the bank will earn income of USD 1.8 million (18 percent from USD 10 million), and of that number, amounting to USD 1.3 million of his will be used to pay interest on your deposit amount 13 percent. The difference of USD 500,000 will be the bank's profits. Of course, the advantage was still to be reduced again by a bank operating costs such as salaries of employees and others.

Can you imagine how many funds can be lent by the bank when there are thousands of people save money in the bank? In fact, the bank certainly does not throw 100 percent of their clients money in the form of credit. This is because every day there are people who pulled their money in bank deposits. Well, if 100 percent of clients' money thrown in the form of credit, so if there are customers who want to withdraw their money, then it would be trouble. That is why, the bank must have a supply of cash to keep it available money for customers who want to withdraw his money.

Supplies the cash by the bank will be deployed to all branches and also to the ATM machines. Of course the numbers are limited. That's why cash withdrawals at ATMs are often limited. If you want to withdraw money in an amount greater than that, you have to come directly to the the bank.

Withdrawal at the bank counter usually not limited in number (as long as your balance is sufficient). However, due to cash-owned banks usually "limited", then you usually have to give out first (usually the day before) if you want to pull in huge quantities. This is so that banks can provide the cash first. It is some kind of monetary policy.