The Good and Bad about using Credit Cards
Although many Americans these days are swimming in an ocean of debt, there are still many upsides to using credit cards. For consumers with a track record of having discipline and keeping their debt under control, credit cards offer huge convenience, security, and money saving perks. Sometimes the benefits offered by credits companies are so good that it makes using cash seem foolish.
When you have the choice of using either cash or credit card, there are times when using “the plastic” is definitely the better option. Many times, using a credit card can help you buy that item or service you need plus additional perks for paying using a particular credit card.
One major advantage of using a credit card is that you get more purchase protection. This is especially beneficial when you make a large purchase such as a laptop and something breaks off a week later. The store will be more likely to assist and talk to you if they know you paid with credit card and not cash or a check that has already cleared and is in their account. Some credit cards include free car rental insurance and even travel insurance, depending on the card you’re using. Also, it is a lot easier to safeguard yourself from thieves if you lose a credit card than if you lose a wad of cash. More benefits include airline miles, rewards points and cash back. Factor in the fact that you get an interest free loan if you pay in full each month, you will find there are definitely advantages to using credit cards as often as possible.
With all this said about the good points of using credit cards, we cannot forget the downside. In a recent survey, it found that 61% of Americans carried a credit card balance every month. People tend to keep charging everything, even though they’re already in debt. This is where the “charge everything” theory is very risky and why many Americans continue to be sinking in debt. Many credit counselors will agree that the perks that some credit cards offer may not be worth the risks to those who are already running up heavy debt.
The big companies have certainly made using credit cards very attractive options for consumers, but you must know how to use them in a positive manner. You must be a wise consumer that can reap the benefits but not get caught in a web of debt.
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