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What is a credit card? What are the advantages and disadvantages? How to use a credit card to avoid debt

A credit card is a card that we are all familiar with. especially nowadays that many People choose to use credit cards instead of cash because they are easy to carry. Just one card can be swiped. immediately without having to pay cash The credit card that we know is a card that we will receive a credit line from the bank or in other words, that is borrowing money from the bank to pay for products before the limit set by the bank for each person. and then repay later by deducting from our account on a monthly basis.

in which to use this credit card If the user can pay the due date every month or every installment. It is a good thing, no problem later. But with the convenience of spending this causing many people to spend accidentally causing them to become indebted And if the user is unable to pay in time, he has to pay interest to the bank. with a minimum payment of 10 percent with additional interest payment of 20 percent per annum And this is what banks are trying to invite us to use credit cards.

Advantages of using a credit card

• easy to carry and convenient to use without the need to carry a lot of cash
• if you want any product, you can buy it right away. and also have the opportunity to invest money Or continue to speculate
• can deduct various expenses Immediately follow the billing cycle, such as telephone bills, water bills, electricity bills or internet bills, etc. Suitable for those who do not have time to pay bills. These are very good
• get discounts on various purchases. You can also collect points in your card to use for purchases or redeem items later.

Disadvantages of using credit cards

• sometimes causing overspending or spending unexpectedly Due to the convenience of spending
• if unable to pay back in time or not in full amount will have to be adjusted as additional interest Plus, the interest rate is high, making it an additional liability
• making it more indebted. and worried about repaying the debt later

Choose your credit card wisely

• try to calculate the price of the product you want to buy. with the amount to be paid out in rough numbers Whether we can pay installments as well as the full amount or not
• before buying anything, try to calculate the value for money. that we can take advantage of that product fully or not And how much is it worth for the money spent
• ​​if you want to use a credit card to shop online? should look at the operator How reliable is it?
• Do not send credit card information via e-mail. To avoid identity theft
• be careful not to lose your card. If lost, call immediately to make a freeze. Otherwise, others may be impersonating the card to swipe until we have to become indebted without knowing
• must read the terms of use of the card clearly. including various promotions whether there has been a change or not

However, although credit cards can greatly facilitate our lives nowadays, But do not forget to use it consciously. Because otherwise it may cause you to become in debt. Having to wait for installments for a long time until you are discouraged and full of worries.

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