Credit cards are more harmful than debit cards?
The confusion between credit and debit card only lasted while we were mere kids. We grew up and came to know of the difference and by the time we had both for ourselves we knew one of these is sort of harmful if we trip over and decide to overspend someday. Shopaholics know that credit cards are harmful because they have witnessed the disaster at least once in a lifetime.
Others are thankful for the mere existence of credit cards and swear by the belief that they are more useful than debit cards that are not always reliable. Unless you have been burdened by credit card debts, you wouldn’t know a thing about its dangerous usages.
1. Easy spending : It is quite easier to do reckless spending when you are using credit card as opposed to when you are purchasing with a debit card. What you call freedom can easily go wrong and since there is the ease of buying anything that your heart could crave for at that moment, you could easily land yourself into trouble of buying things that were not needed.
2. It is trendy : Using credit card to make payment is usually considered cooler and trendier than cash method or debit cards. Peer pressure comes to play and you too want to do what others are doing. In an attempt to show off, not only do people use credit card more frequently than needed but also go ahead with over spending most of the time.
3. Losing to interest : Just to buy a thing at the moment you laid your eyes on it, you depend on credit cards. You could have waited for the month and then purchased it but since you convinced the stubborn brain that you need it instantly, you totally forget that you will be paying extra when your debt keeps increasing and along with it the high interest rate too. The next time you see an item on sale and instantly reach for your credit card, do think if you are saving or losing more.
4. Burning holes in your pocket : A weekly trip to the mall to buy a little here and there and by the end of the month, your bill will have a heap of things that you bought off the credit card and yet you do not understand how you crossed over your monthly budget to land into all those debts. If you are extravagant, credit cards are just the things to forget at home when you step out.
5. Alluring rewards : The reason why most people are lured into using credit card more frequently is their rewarding scheme. They offer cash back, reward points for purchase, travel points, etc. You are forced into thinking that your purchase is going to help you save more while it is usually the other way round. Secured credit cards and charge cards, however, do not have this drawback.
1. Warranties : If you purchase an item over credit card and it proves to be malfunctioning or faulty even if the warranty period has expired, there are coverage policies of the credit card company that could come to rescue. You can also dispute unauthorized purchase or purchase of items that are defective or got broken during the delivery.
2. More security : Like it or not, credit cards are more secure than your debit cards. Fraudulence and other such fishy cases happen mostly over debit card transactions only. Credit cards are far better in terms of security. You get ample time to claim for fraudulence and the action taken is less complicated, making things simplified with the defaulter getting caught rather easily.
3. If only you could be smart : For those of you who can be smart while spending and make it a point to clear the debts by the end of the month can find credit cards rather advantageous to use. With all those rewards and travel points, you have much to gain if you are a regular shopper. You can add up many points over months and they can be helpful in discounting on your next purchase.
4. Ease of carrying and transaction : You literally do not have to worry about carrying cash or looking for ATM slots when you are on the go. It is smarter and easier to use on holidays across various places when you do not have to fret about your transactions. You can also keep track of your expenses and reduce accordingly.
If one is unable to manage his/her expenses and a shopaholic who finds it difficult to abstain from the lures of shopping or those who shop when they are stressed, credit cards are not your friends. You should better keep away from them. Leave them at home when you head out and rely on debit cards for your shopping and other expenditures.
People who are smart at money matters can benefit a great deal from using credit cards for their purchase. You get easy loan with tons of perks and what more – it is secure and easier to use.
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Credit cards are more harmful than debit cards?