Gowhar Majid

Credits cards are believed to be one’s best friend in times of need and crisis. Yes, they also prove to be one sometimes. However, the million-dollar question is: Is this reason good enough to own a credit card? You may also argue that there are many other advantages of credit cards, like they give discounts and cash back rewards, interestfree period of 45 to 55 days, and also help you build a credit history. Good! Have you, however, ever realised that if credit cards can help you build your credit history and score, they can also ruin them forever if used recklessly, because of which you won’t be able to take a personal or home loan ever in your life? Are you also aware that crores of people the world over have fallen into a debt trap because of credit cards only, which has ruined many homes? Why? Because credit cards work on the principle of ‘Spend Now and Pay Later’ – which induces a majority of people to spend more than what they actually earn, sometimes to impress someone and sometimes simply to maintain their ‘social status’! And they realise their folly when it is too late! It is clear, thus, why you should avoid using credit cards as far as possible. Although there may be many reasons to stop using credit cards, here we are taking a look at top 5 reasons why you should say ‘no’ to them: Bad Habits Risk Your Relationships studies indicate that couples and families fight about money more than any other subject, and it can be an especially sensitive topic when there’s not enough of it. As a result, couples and families should work on budgets and financial self-discipline together, whenever possible.
Declaring bankruptcy will scar your credit history for up to 10 years and when the report finally goes away, you have to build good credit all over again.
If you don’t owe money, you won’t have to worry about late fees, interest, annual fees, or over-the-limit fees. The best way to treat yourself to something nice is to save and buy it when you can truly afford it. The peace of mind that comes with not financing that purchase will be like treating yourself twice. Credit may lead to debt trap With hidden charges and prohibitive interest rates, credit cards often push many people deeper into debt, getting out of which becomes difficult after a point. This is no longer a secret!. Does Not Teach Self-Control. At best, an unwillingness to exercise self-control when it comes to money can rob you of financial security. At worst, an impulsive attitude toward buying can have a negative impact in other areas of your life, including self-esteem, substance abuse, and interpersonal relationships. Yes, exercising restraint may be difficult and boring, but it offers many rewards and advantages, from staying out of the hospital to affording your own home. If you go on several spending sprees without a plan to pay them off, or if your plan goes awry because you lose your job or get hit with medical bills, you may find yourself hopelessly in debt. Declaring bankruptcy will scar your credit history for up to 10 years and when the report finally goes away, you have to build good credit all over again. ‘Credit works well when balances are paid off each month but can be disastrous when poorly managed. The convenience, protection, and rewards offered by credit cards make them handy financial tools, but consider the risks before getting in over your head’.
(The author is pursuing company secretaryship. Views are his own, [email protected])

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