One morning, I woke up and decided the credit card had to go. Now, this was something I had mulled for a while but never plucked the courage. So you can’t imagine the liberation felt seeing the pieces come out of the shredder.

The exhilaration was only comparable to the day I disposed my supermarket loyalty card. To me, both actions represented liberation from servitude.

For a start, I had a credit limit I considered small. Naturally, I looked forward to the day I would enhance it to fit my ‘status’. That time did come with an additional sweetener; the minimum monthly repayment had been reduced to a mere five percent. Let’s just say I was jolted back to reality when the statement came showing an interest component in excess of KES 1,000.00 per month.

Maybe I should have started by explaining how a credit card works.

Assuming that debit cards (aka ATM card) are familiar, a credit card is much like a one with the exception it allows you to spend money you do not have up to a certain predetermined limit. There is usually an allowed free credit period of fifty days within which any money spent does not attract interest. For example, my bank issues credit card statements on the tenth day of every month. Let’s say you spend KES 10,000 from your credit card on 11th January, this transaction will reflect on your statement dated 10th February and the payment will be due at the end of February.

Since banks are in business, the free credit period is a necessary evil. That is why they do not expect you to pay in full. Normally, there is a set minimum which has to be paid and the balance rolled over to the following month. Back to the example above, a typical credit card agreement may require you to pay 10% of the amount spent which is 1,000. The remaining 9,000 will be rolled over to the next month where again you pay another 10% plus interest.

Other charges to expect include an annual fee and application fees at the point of applying for the card. Should you spent beyond your limit, a penalty is imposed.

From the above, the credit card is a pretty straight forward product but does get complicated when fees and penalties are imposed.

Now you can understand the exhilaration upon shredding my card.

As for the supermarket loyalty card, it had to go because it was modifying my behaviour. I used to walk across town to find a Tuskys branch just so I could get the points for my shopping. If I found my bill at around KES 90, I would pick an item or two to get the magical figure of KES 100 hence an additional point.

I know many of you still do that. That’s why I always watch in amusement as you pick sweets to qualify for an extra point and refuse them when given in place on one bob coins.