Having a credit card is almost a compulsion, in today’s world. Everyone, whether an 18 year old teenage adult or a 60 year old retired person wants to keep a credit card, either out of desire or out of necessity. What people don’t realize is that credit cards pose more harm than actually do good.
But like every other commodities credit cards have become an integral part of a culture. Companies now have credit score checks when they hire any employee for a job. It has become almost critical to get a credit card, but here are 5 harmful factors of having a credit card.
Debts
Once you get a credit card, prepare yourself to land in serious debts. There are very few people who are actually able to keep up with the monthly payment and those who do so, actually even they are not sure till when they can keep up with the pace. High interest rates begin piling up on to the bills and before you know it, two months into late payment and your in major debts.
Temptations
When people get a credit card in their hands, they start using it carelessly. Even the most careful person will once let down the walls of control and use the card to buy for something which can be purchased in cash. It takes herculean will and strength to be able to not use a credit cash for some product you desire. People happily buy luxurious items, go on vacations all on their credit card, which is why trouble is always around the corner.
Depression
Initially a person may happily draw out multiple credit cards on multiple accounts, because banks promote the good side of credit cards.A few months down the lane, people then realize they are not able to pay back the money anywhere. If there are other financial problems in the house, then the person starts getting severe depression. With a credit card, a person is never free of financial worries. And banks constantly find ways through which a person’s credit bill should be imposed with high interest rates.
Harassment
In case your a credit defaulter and are not able to repay back on time, banks will get collectors to get behind you. Insulting phone calls, threats, warnings and harassment is part of the package. A well off person starts getting a bad reputation and suffers from harassment all because of a simple plastic card.
More Expense
When harassing occurs, your in a fix, what do you think of doing next? Approaching a consolidating firm for rescue. Or getting legal help, which ofcourse has its own expenses. Once the credit card debts are consolidated (if your lucky to get a genuine consolidation firm) you will start paying off the consolidated debts. In way or the other, your stuck with debts.
Before applying for a credit card, think clearly of the risks you will be posing to your calm, tension free life and then decide, do you really need it?
These are all correct, of course. This somewhat proves that having a credit card is in itself harmful. But these are actually very petty problems, issues that can be solved by a little self-control.
Yes, I agree. Using credit card is not harmful, you just need to be more careful using it. So there will be no further problem.