5 Ways Credit Cards are Burning a Hole in your Pocket

Gone are the days of smart shopping. These days everything our eye can catch hold of finds a way to our shopping bags. We may not carry such cash but plastic money seems an easy way out. But the question is, is plastic money per se an easy way out?

How about ruminating once upon it? The answer would straight away turn out to be a No! Read further to know the reasons behind this No.

Instant shopping

The portable nature of credit cards makes money available to the user at the right time at the right place. Imagine transacting something for 10000 bucks through a credit card, it appears an easy deal rather than cash. Psychologically, we don’t care to spend more by credit cards than we do when we shell out hard cash, justifying to ourselves every purchase we make.

 

A recipe for disaster of debt

The transactions entered into everyday culminate and pan out to be a huge amount that might leave the user dumbstruck and consequently head to a debt trap. Such a situation may put him in the bad books of the bank.

 

Violation of Money wise, be wise

Often users run after accumulating reward points and thereby use credit cards for the smallest of the transactions. The fancy of reward points as to earn a benefit of as little as a voucher of mere 500-1000 bucks after spending over 50000 bucks, is senseless. Sadly, many fail to understand this gap.

Overspending

The users tend to spend beyond their means. It is similar to not cutting the coat according to the cloth. Such a habit is not uncommon among the credit card users and may turn to show its adverse face soon.

 

Deadlock

A situation soon knocks the door where repayment of credit disrupts the regular spending and a larger part of the earned income is disbursed towards the debt. Further, a fresh loan has to be applied for from the bank or informal sources, adding to the already created debt.

Thus, it can be summed up that credit cards allure us owing to its ability to replace cash and promise attractive reward points and gifts but it should not ensue in a regular habit as it slowly deprives us of the cash in our accounts.

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