Are Credit Cards Spoiling Our Habits?

Feb 10 • Group Discussion • 1991 Views • 44 Comments on Are Credit Cards Spoiling Our Habits?

We have used CREDIT CARDS  numerous times but still most of us are not aware about the origin of credit cards and what are they!

If credit card  has to be defined in simple language it can be defined as –

“IT IS A RECTANGULAR SHAPED PLASTIC CARD ISSUED BY BANK, BUSINESS ETC FOR THE PURCHASE OG GOODS OR SERVICES ON CREDIT”

Credit Cards

Credit Card Spoiling Our Habits

The bank credit money to the cardholder because of the promise made by him/her of paying back the borrowed money .It is always said that Coin has two faces similarly credit cards have their own pros and cons.

PROS :

  • REDUCES BURDEN OF SMALL LOANS : 

This is one of the major advantage of credit card .Say for e.g. you have to pay your hospital bill, it would be practically stupid to rush to a bank for loan. There comes the “credit card” or “savoir” .For such emergency situations credit cards are very useful.

 

  • MAKE CARRYING CASH OBSOLETE:

This is one thing which we face very often i.e. cash mis- management. Imagine you are purchasing an item worth Rs 7000 and you all have in your pocket is coins, sounds bizarre right? To avoid such ruckus we have notes .Similarly, to avoid cash mis-management now-a-days people carry credit cards very often.

 

  • FINANCIAL SECURITY: If credit cards are used wisely they always give you financial security during worst times.

CONS:

Do you know credit cards have higher interest rates (around 19% per year) than most consumer loans.Lets look at the cons of credit cards….

  • Credit card gives you power to purchase almost anything,even those items which are not in your budget ,thus an individual ends up paying more price  for the item.
  • Credit cards encourage a shopaholic in us and if not controlled at right time one can end up in heavy debt.
  • It ceases the sense of realization of of actual cost of asset.For eg.if we have a bill of 10,000/-  and if we pay cash we will realize how costly the item is. On other hand if the same amount is paid by credit card we just have to sweep the card and sign the bill.Thus,credit card ceases visibility and realization of the cost of item.

 

We should understand credit cards are not for everyone!The people who cannot be in their budget should avoid using credit cards.Credit cards can be your play cards if used WISELY and by being in the budget they can help you with travel reservations,purchasing easily and securely..They can even help you with budget and savings.

So,what are you waiting for? Grab your credit cards and make the most of your financial resources.

Let us know your opinion on Are really credit cards spoiling our habits.

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44 Responses to Are Credit Cards Spoiling Our Habits?

  1. Pallavi sinha says:

    Article looks impressive n focusses on all merits nd demerits of credit card. From my point of view there are enormous amounts of benefits of credit cards against its cons.It can help our budget expenses every month n very convenient to use. While making costly purchase with credit card it gives us a degree of theft protection that we cannot get when we pay with cash.

    • BUT My FRIEND end of the day it is a credit…u have to pay back
      may it pulls down your burden but it does not mean that the burden is gone forever-u need to pay back with almost 19% rate of interest…which again creates a heavy dose
      and of course i agree about the point u mentioned about protection….

      • Chaitali Mallick says:

        Yes Friend you are right. But today a Credit card carries an identifying number which speeds shopping transaction. Imagine a credit purchase would be like without it… the sales person need to record all your data like your name, phone number, billing address etc. Isn’t it very time consuming??

  2. I respect your thoughts Bharti but still some where it has affected our life

  3. interesting topic!
    I find it helpful!!!!!!
    bt the tax levied on it is really high!!!!

  4. No i dont think that they are spoiling our habits as they are built generally to solve our cash related problem and now it is up to us that how we utilize it to solve our Money related Problems!!!

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