Credit cards are useful when you don’t have money to spend but you are sure that you will have it after sometime. Credit cards works on simple principle “Spend now and Pay later”. Is’t sound cool?. Yes, it sound cool, who will not want to use such a great chance. But, there is discussion, whether credit cards are good or bad?. And the world is already divided into tow part, one is always advocate for benefits of the card and another always oppose the use of cards.
Sometime ago, I also use credit cards frequently. I was so much attached to it when i have hard cash but i prefer to use credit card. I was tired of paying bill months after months.
Though, there are many reasons to avoid use of credit cards , here I am presenting to 10 reasons to avoid credit cards.
BUY UNNECESSARY THINGS
It is human nature to spend money when he/she has it. Credit card money is a virtual money which exist but that is not your money. You are expected to pay the credit card bill which generate after you spend money. Indirectly, you are spending money which you are going to earn in future. Do, you are spending you future income. And, you are have invisible money you bought many unnecessary item which you don’t need.
HIGH INTEREST RATES
When you use credit card, its a debt on you. And you have to pay the amount reflected in the bill. When the bill generated, there are two option to pay the bill either pay full amount or pay minimum amount. Credit card provider firm give you atleast 15 days to pay the bill from the generation of bill. If you miss the deadline, you have to pay interest on amonut or if you pay minimum amount than still you have to pay interest of remaining amount. The interest rate of credit cards is somewhere between 25% to 40% which is huge.
CAN AFFECT CREDIT SCORE
When you miss the payment of bill or you don’t pay the bill. It downgrade your credit score. Your credit score is very important you you apply for home loan or car loan or persona loans etc. Avoiding, credit cards will surely improve credit score.
HIDDEN TERM AND CONDITIONS
There are multiple term and conditions which we don’t not bother to read when we sign up for credit card and just trust the agent. Agent promise us a lot of facilities, but there are multiple hidden terms and conditions. So, please read all terms and conditions before signing up.
CAN AFFECT MENTAL HEALTH
If you don’t owe anyone money, you won’t have to worry about delayed payment, penalties, fees, interest, credit score etc. This peace of mind is more important than the product itself. Why to lose your peace of mind just for the sake of increasing the business of someone else or buying a thing which you really don’t need?
MONEY MATTER 