In many countries it is easy to apply and to get a credit card. However, credit card debt causes many problems and is hard to pay back. Do you think the advantages of credit cards outweigh the disadvantages?
In contemporary times, a school of thought propounds that credit cards are convenient to use but people often struggle to repay them to the banks. The following paragraph shall discuss the advantages and the hurdles for the buyer and decide whether the former over-shadow the latter.
To start with, credit cards have become a modern way of spending money in the major cities. Many of the online shopping applications have credit cards as the only mode of payment. These cards are generally considered as a luxury rather than a necessity. Banks also lure the public to use these cards more often by offering them cash back and reward points. The advantage of buying the goods today and paying later provides them a chance to schedule their expenses. Spending and paying back on time also creates a credit history of the user, which helps banks to determine the maximum amount of loan that can be offered based on the credit scores.
However, such actions bring the user to a position where the buyer often overspends on the products which are not even required. Credit cards usually come with a limit of three times of the existing salary. This habit of unnecessary purchases ends up consuming the entire allowable limit and brings a number of problems like, not being able to pay the banks before the due date or not having sufficient money to pay and ends up missing the payment which even worsens the credit score.
Overall, it is true that credit cards are a modern-day trap where individuals get into a loop of earning, purchasing and paying. I strongly agree that these cards are more problematic than beneficial. People should buy things as per their pockets rather than on credit.
