Disadvantages of using credit cards

There are several reasons to use credit cards like you will not have to worry about how much cash you are carrying with you. click here to know more about credit cards.  Most of the financial specialist say that “credit cards will never be beneficial for us.  Because we spent more money than it’s necessary and then we have to pay more than we spent.

The biggest disadvantage of credit card is overspending. People spend more than it’s enough when they get credit cards. A person who have a budget of 10,000 he can spend 100,000 and when he can’t pay the bill of his credit card he have to pay interest for it. Isn’t it terrific?   Now you know how the credit card can blow your budget.  Some people spend money with credit cards like it’s a free money while credit card is opposite of that you have to pay more than you spend.

At 1st you think about credit card can manage your financial condition but it is not like that. If you don’t know how to use credit card wisely then it can be the worst decision of your life to hold a credit card and spend money with it.

Credit card can also be a reason of fraud and you have to pay a big amount for that sometimes more than you can think. Imagine someone steal your credit card may be it can be physical or digital as well. Imagine someone steals your wallet and he got your credit card. He is spending much money with your credit card and you will get to know in the end of the month when you receive the bill of your credit card.   You will have to pay that money that you never spent. This is terrific no? Or imagine someone stole your credit card number from a receipt or from a website then you can’t even imagine how much you will have to pay for it. So be careful when you use your credit card and if you think that someone stole your credit card number or you get more bill than you spend immediately  do complain in your credit card company. 

You might be don’t know that you are paying a high interest for your credit card. Credit card force you to spend more money and buy unnecessary things like very expensive Mobile devices, dresses, shoes, Car etc.  That’s why the financial advisors advice us not to use credit card. The credit card companies take high interest for credit cards from us.