You can live a good simple life without credit cards, and I say it from experience. Personally, I feel much more comfortable when I spend the money I earned or that is really mine.
The balance of your credit card is the property of the company / credit card bank which issued it on your behalf. You actually borrow money that you must reimburse with interest.
Free time and missing payment deadlines do not exist. Since these golden tickets called “credit cards” have been born, the number of people who deposit Chapter 7 Bankruptcy Each year continues to soF.
Credit cards urge you to spend more
Generation X, Y and Z have been victims of laminated plastic because it seems to be an additional source of wealth. Things like credit points and “additional advantages” on purchases are not generally worth interest rates and maintenance costs that you will support later.
Frankly, credit cards are the death of Shopaholics; If you cannot fight the desire to buy everything that attracts your attention, the transport of a credit card is dangerous and unhealthy for you.
You will spend more than you win and unpaid bills will continue to accumulate. The saddest part is that the debt that you are later forced to reimburse is double the amount that you should really be taken into account.
Fraud and theft
People addicted to credit cards often have a rave on its portability and convenience. I agree that it takes up less space in the wallet, but isn’t it easier to lose too?
The money can be heavy, but you normally do not wear much and it is completely noticeable if you do. When someone says credit cards save your money and prevent theft, I can’t help but laugh. To be honest, they are the main reason why identity theft and electronic fraud have become so common.
I know that you can immediately report a lost card and block it, but what happens if you are too late to find out that it has disappeared? Pirates can follow your information and sweep the balance of your card in a few minutes, so I do not buy the “financial security field”.
When the credit scores are important
Apparently, you will need a good credit rating when you launch a mortgage, ask for a loan / lease or insurance purchase. You reach a good credit rating when you maintain a balance on your credit card and make monthly payments before deadlines.
This also helps if you do not opt for the lowest payment plan, because when you choose to deliver the smallest payments, you actually pay more interest rates over a longer period.
If you never have a credit card, you will have no credit scoring history to prove your reliability. You will find it difficult to convince the third party to lend you something and subsequently invoice reasonable interest rates.
Conclusion
Whether credit cards are harm or a necessary evil depends on your expense habits and your lifestyle. Keeping a credit card does not hurt if you use it or if you think it as the last resort in an emergency.
Budgeting is compulsory in all cases, and you must always select the shortest payment plan to reimburse the expected credit. When you reimburse a large piece or the amount entirely underway on a monthly basis, you get off with negligible interest rates.
Organic author
John Adams is a parajurist who writes on generalized legal and social issues. It helps readers overcome the challenges and solve many personal problems in the intelligent way, rather than the hard. It aims to reach out to people who do not know their legal rights and make people a better place.
Thank you for reading, let me know your thoughts and comments below.
