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Home Basic Finance

7 Reasons to Avoid Using Credit Cards

Elearnmarkets by Elearnmarkets
October 27, 2021
in Basic Finance, Banking
Reading Time: 4 mins read
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Managing debt is an essential element of money management. To learn more about managing your money, join our course to gain a Certification in Online Financial Planning & Wealth Management from Elearnmarkets.

D-E-B-T……Are you one of them who is suffering from this term? Well, let me tell you that debt if used very cautiously can lead to wonders.

But wonder rarely happens!

In my case, I just try to stay away from debt as much as I can.

Under any circumstances, if I find myself under debt, I just postpone all other things aside to repay them as soon as possible.

One of the easy and best ways to be ready for your secure future is to simply avoid debt.

There are numerous examples of people and companies who have been destroyed by joining hands with debt.

Today we’ll talk about that why we should avoid credit card?

In recent days, the usage of credit cards users has really gone up.

With the attractive offers and discount available for the credit card users, people just can’t let go the opportunities.

However, credit cards if used sensibly offer many benefits as well.

Read More: 6 Financial Planning Mistakes that can change life

For instance, you don’t need to carry cash for your expensive items, for your emergency needs, and for your other requirements.

But if used casually, it can lead you to a big disaster.

The problem with the debt is that when debt starts mounting up, it becomes really difficult for you to get out of debt.

Reasons to Avoid Credit Card

Let’s understand why you should avoid using credit cards?

1. Don’t go for what you can’t afford

It is a very common problem in our Indian society that most people have a tendency to show off and end up taking high debts. But it’s always better to stay in your means and avoid getting trapped in high debts.

2. Involves high-interest cost

When you have a credit card, it’s very important for you to have a self-control. The high-interest rates involved with credit cards can lead your purchase expensive.

3. Credit card given to kids can be dangerous

The kids have hell lot of temptations around them and having credit cards with them could be dangerous. The reason being that most of the kids lack self-control when it comes to shopping.

4.Can affect your mental peace

The pilling of high-interest expenses may impact your mental peace especially if you are under a heavy debt. The best thing could be to avoid things which are beyond your means or wait until you have an adequate fund to buy the product.

5. May lead to unnecessary higher spending

You may be a target of impulse buying especially when you have a credit card with you. So a salaried class should avoid using credit cards who have limited earnings and have a long family to cater. It may even affect your monthly budget.

6. May lead to bankruptcy

The credit cards if not used cautiously may lead you in a situation of bankruptcy. Kindly don’t use credit card beyond your means and avoid using it for very high-value purchase.

7. May affect your ability to finance important purchase

Poor credit score may significantly impact your ability to finance important purchases including your home. The reason being the high credit may increase the chance of committing fraud.

Watch the video below to know more about why should one avoid using a credit card:

Bottom-line

I am not totally against using credit cards. But you may use it as per your convenience, provided you have a control over your expenses and means to repay it back within a specified time period.

Similarly, if you can plan your personal finance perfectly, you won’t have to be trapped in any bad debt.

Take care and keep learning!!

Tags: bad debt credit cardsbankruptcycompanycredit cardcredit card usescredit card with bad creditcredit cards for people with bad creditdebtenglishhigh interest costspending
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Comments 8

  1. sunil says:
    6 years ago

    THANKS NICE ADVICE

    Reply
  2. Anubhav Parsuramka says:
    6 years ago

    The article seems fine, but would have been better if you would have explained in numbers. E.g what is the interest rate of late payments, is 0% interest a myth? , how many terms and conditions are not explained properly to the card holder by the issuer (highlight the major ones only)

    Reply
  3. Ankit Jaiswal says:
    6 years ago

    Thanks Anubhav for your feedback!
    I’ll definitely consider your points and will come up on the suggested topics in the coming days.

    Reply
  4. Ankit Jaiswal says:
    6 years ago

    Thanks Sunil!

    Reply
  5. V Lakshmi says:
    5 years ago

    Nice article! The post demonetization has replaced cash and dependency on cards has increased. Credit cards have become more of a necessity. With the rampant usage, are credit cards good or bad?check more at http://www.publicdebate.in/credit-cards-good-bad/

    Reply
  6. Xavier Stockert says:
    3 years ago

    Really great information, thanks for the share and insights! I will recommend this to my friends for sure.

    Reply
    • Sakshi Agarwal says:
      3 years ago

      Hi,

      Thank you for reading!

      For receiving updates on our new posts please register on our blog page!

      Keep Reading!

      Reply
  7. maurten gel 100 erfahrung says:
    2 years ago

    Hi! I’m at work surfing around your blog from my new iphone!

    Just wanted to say I love reading through your blog and look forward to
    all your posts! Keep up the outstanding work!

    Reply

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