Abusing the credit card can drag you into a hole


When my wife's elder sister got a credit card she was ecstatic to know that she can pay in the minimal installment amount. She continued using her credit card that in a span of 1 month she owed the card more than 50,000 pesos ($1,000). She is earning just a fraction of that amount so what happened was she was charged with a penalty and her card was suspended.


That's why I don't want to use a credit card, it has interest and I don't even want to incur and pay for the interest. I don't think I will ever avail of one just because of that.


A lot of people interpret credit cards as free money. It will be too late before they realize that they will have to pay every penny that has been spent through the credit card. However, if you use your credit card wisely, i.e. only when you do not have cash at hand or do not have funds on your debit card, credit cards are a great help.


I have a credit card but I don't use it. It is more of a safety feature in case I was stuck without any way to pay. I normally use a debit card as I prefer to pay as I go. Whichever way you look at it you're going to have to pay in the end.


Most people get carried away while using credit card. This kind of thing happened with my brother too. Credit card is actually quite useful if you use it wisely and make sure that you pay your bills on time. Otherwise it just becomes a huge money trap from which it is very difficult to come out.

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