Disadvantages of a Credit Card

The world is changing, becoming a global village and is evolving into a more simpler place to live in. What was impossible for people a few decades ago is an everyday happening in today's world. Needless to say, these changes have been seen in the professional world as well as the personal world. One of the biggest enhancements in services that one can ever come across in the business and finance sector are credit cards.

Like any modern service and gadget, credit cards come with their own list of advantages and disadvantages. While the credit card can really increase the worth and value of a person, it can also singlehandedly ruin a person's life and financial stability.

It is important to be clear that a credit card, in itself, does not have any disadvantages. However, it is only because of people marketing them in unethical ways and people using them as if there is no tomorrow that makes it one of the greatest disadvantageous services in the new world. Here are some credit card disadvantages:

Money, Money, Money: Quite simply put, a credit card is the easiest way to have access to a huge amount of money quickly legally. However, not many understand the repercussions and responsibilities of owning a credit card. This is one of the major reasons for falling into what is called as a 'credit card' debt. The free availability of credit cards may result in overspending and a unexpected and non-backed-up increase in the lifestyle.

High Interest Rates: Though credit cards lend money as simply as withdrawing money from your own account, the interest rates are highly restrictive. Again, firstly, these rates are not clearly mentioned, and even if they are, they are ignored simply because of the very possibility of easy and quick money available at hand. Many credit card have more interest rates than even many kinds of loans.

One too Many: There is no ceiling on how many credit cards one can own. Though men and women around the may like to think that they have the right and resources to increase their lifestyle tenfold without any serious liquidity, it is simply not so. Numerous credit cards do make the credit debt deeper and deeper.

At the end, all I would like to tell a credit card holder is that a credit card is one of the best services available today. However, to use them, one should treat them as an investment which can be used at the right time on a rainy day.





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