why CC, if u are not desciplined....any thing can ruin u financially why credit card, The option is upto u...if u are fool u'll be fooled, if not u gain
I disagree with all the comments.A credit card will ruin you financially only when you spend by it without a plan to pay back, on time. I use a Standard Chartered Credit card for the last five years.I regularly pay the dues on time.I shift most of the spendings for the next day of the statement day. I am getting a 45 and 50 days credit and I am enjoying it fully as my payment due date is two days after my salary date.I am getting special interest rate loans (just by a phone call)at 6 to 8 % flat interest rate as I pay my dues regularly. If you spend with a plan to pay back on time (even as EMI s) credit card is helpful when you are in need of money. Otherwise, I also have to agree with all the comments.
Keypoint being missed is: Leverage. The whole point about creditcards is about getting leverage - and used to the debt-concept.
Though the argument that one should live within one's limits is a golden adage - credit cards helps push that limit a bit.
Sure you can get your plasma TV when you are 25 and watch that worldcup where india wins with sachin on the team next yr. OR u can plan on just saving and seeing the game in 2020 by using the debit card when you are 40!
In my opinion leverage is what drives firms into debt even when they have cash-reserves (apart from tax-breaks) and creditcards while dont get taxbraeks defnitely help push one's limit and therefore get you to live in means which you thought not possible. The opportunity cost of time and lifestyle at the right time is a big argument not to be missed here.
Yes I do agree Credit card can be a Debt Trap, But its all on how easily you manage your funds and multiple card transactions, I have seen mostly when a person gets a NEW Card he gets into the Dept Trap. But once he gets out of it he can really use it an take benefits or the value added points or cash back offers or so on..
read u r articles,it was quite admirable.these small but important things need to be understood to lead a simplier and stress or tension free life .. keep writing such good articles uttam
this was really a good way to give a clear picture on how the credit card can change itself to debt. i have just owned a credit card but now i am goona be careful while using it instead i will use my debit card for this purpose.
congratulations once again for such a wonderful article
Hey this was a great article I have ever read. I think it makes lo of sense and also tells you the truth behind the credit card . I'm not many people who use credit card know about it .
So the operation. You need Rs.1 Lakh. Loans take atleast a day I guess, and the bank has to be open. And as per Murphys law it can even be a Friday. So do you wait till monday to do the operation? I would use my credit card. (I dont know the credit limits now in India. But I guess it would be atleast Rs.1500000, since I could buy a plasma TV). Money or Life. I choose life.
Many more. But just another main point. If you happen to lose your debit card and someone makes purchase with it, the money is gone. But in the case of cresit cards, you can dispute against the purchase.
So finally credit card or debit card? Anytime I would go for a credit card. After all I cant save Rs.20 running behind the taxi. It goes faster than the busy. I might end up using my credit card after I fall down chasing it.
