Don’t Let Credit Cards Rule Your Life
How many credit cards on an average do people sitting in this room own? I m sure not less than 3..
As a matter of fact credit cards are becoming more and more popular despite numerous disadvantages they entail.
A credit card gives you an opportunity to cover services by borrowing money from the bank and to pay on balance. At a single glance, credit cards offer excellent release for any business of yours. . Though they promise saving your money and solving unforeseen problems and react to the proceedings which one may come across and that require certain sums of money you do not have at your disposal Because of high competition between credit offering companies there appear suggestions which at the first sight concern advantageous terms for the customer. And really it requires budget planning from the customer. He should be able to pay the bill monthly and if there appear any financial problems, he may no longer ...view middle of the document...
It goes without saying that credit system in such a case becomes an additional load for the consumer. Credit card issuers benefit from client not paying back in time, there also may happen billing errors which create inconveniences for the clientage.
Moreover, though there are different kinds of credit cards used for businessmen, students, etc. they all are predisposed to make you borrow in an unprofitable way. To some degree, economists consider credit cards to be not the cheapest means of borrowing in comparison with personal loans for instance. Lack of control can undermine your financial welfare. As firms offering loans and credits of different kinds compete with each other, they may involve clients into additional deals the latter never wish. They offer different transactions to make their customers stay with the firm and propose them something that is hard to be turned down. There may be zero per cent interest cards, gifts and pleasant stimulating items. But later on they price out to cover the expenses. Hence, signing some documents, even not so significant as it may seem at once, one should be as considerate as possible.
Naturally, possessing a small credit card you do not need to have much cash with you, and it gives you a possibility of buying expensive things without further delay, it usually results in excessive purchasing. One should always see to it that the account number is confidential; otherwise it can lead to inconvenience and insolvency. It is also dangerous to give information on the credit card by telephone to order necessary things. There happen unauthorized charges, if someone used your credit card illegally, when you lost it or became a victim of a robber. Those who complain suffer from false charges and the companies do not agree to refund them if they are not in time with information about their credit card loss. Customers also criticize the actions of the companies which neglect the fact that clients overpay but annul their balance without any warning. Then it may take them months and years in particularly difficult incidents to prove their case.
Using credit cards is also not so secure because much depends on borrowers and if something goes wrong in the economic pyramid the money put up will surely be at risk.