using credit card

[mvdheuvel1983]

Great points were raised by you.
Only someone who has really used a credit card can decide whether it is prudent to do so in the end. Meaning, based on experience. It is a two-edged sword, as you mentioned. There are both positive and negative aspects to it.
It's like to putting the wagon before the horse by creating a budget to track your expenses after using a credit card. In order to ensure that you can make the payments on time and prevent late fees or other penalties, it would be good to first establish a budget.

[1714777002]

1714777002

[1714777002]

1714777002

[jaberwock]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

it depends on your country, do you that not every country that make use of credit card to operate, in some countries you not have a credit card but you will purchase anything you feel like purchasing with cash over one or six months, and secondly with the credit card you will spend what you never expected because you are not seeing the money, i have notice that to spend money with cards is more easier than to spend with a physical cash, i will advice you to be spending with cash instead of using a credit card, but if you know it will be good for you to credit card, then you can as well go with credit card.

What do you mean by over one or six months? Is this a term to pay the missing amounts? So it still work like a credit card, okay that's cool but I think credit card is more cooler and more convenient because there is no need to carry a bulky cash with us. It fits on a small pocket plus it allows us to make online purchase.

I guess, that is something that can't be done on those countries that you mentioned where there are no credit cards. Credit cards are now high tech and they can now be connected to our smartphones to see our balances and other details. But There is something that is better than the credit card and that is the chips or microchips that are installed inside of our hand. I saw lots of videos like this lately.

[Findingnemo]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

You should not use credit card unless you have the money which you're going to spend in your bank account in worst case you know the sources of income will get you that amount before the due date.

If someone use credit card in this way then it's good for them because it will help you to build your credit line so get loans for less interest rate for example while doing business,etc and also enjoy the free perks comes along with credit card for example free lounge at airports, free hotel stay, etc.

[Majestic-milf]

i am weak at economy, is it wise decision to use credit card?

Uh for me? No. I mean, why enslave yourself? Because thats how I view them. Since you said you are weak at economy, that could translate to mean, you do not have a control over how you spend, huh? Quite simple, ditch the use of credit cards because they can make your spending expensive, no thanks to all the interest being added when one makes a purchase on credit.
 Just to add, do you know how much the US owes in credit card debt? Above a million US dollars. See why it ain't wise?
 

[xSkylarx]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

You should not use credit card unless you have the money which you're going to spend in your bank account in worst case you know the sources of income will get you that amount before the due date.

If someone use credit card in this way then it's good for them because it will help you to build your credit line so get loans for less interest rate for example while doing business,etc and also enjoy the free perks comes along with credit card for example free lounge at airports, free hotel stay, etc.

so that is really a point of credit card to to take a loan with less interest and easily got the a loan i would prefer this than using it to spend on something that later on youll pay it, i mean even you cant afford it you can still buy it and pay it in installments which my view is that it isnt good idea because why purchase it if you cant afford it in cash mostly this are wants and not the needs in our life.

[Ludmilla_rose1995]

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

most people who use credit cards think that by using it they will be able to save money and better monitor their spending. but the fact is that most people are trapped in credit card debt, they continue to be charged unreasonable interest and it will continue to grow if they don't pay it. if you are at this stage you should stop using a credit card until your debt is finished.

[Findingnemo]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

You should not use credit card unless you have the money which you're going to spend in your bank account in worst case you know the sources of income will get you that amount before the due date.

If someone use credit card in this way then it's good for them because it will help you to build your credit line so get loans for less interest rate for example while doing business,etc and also enjoy the free perks comes along with credit card for example free lounge at airports, free hotel stay, etc.

so that is really a point of credit card to to take a loan with less interest and easily got the a loan i would prefer this than using it to spend on something that later on youll pay it, i mean even you cant afford it you can still buy it and pay it in installments which my view is that it isnt good idea because why purchase it if you cant afford it in cash mostly this are wants and not the needs in our life.

Unfortunately we have been tuned in that way so majority of people don't realise the credit card trap but who knows can use it wisely and get a certain amount as long with zero interest and this will further build the credit score so in future we may get better interest rate for example while buying a house or car or anything.

[panganib999]

I'd rather not have a double-edged sword than have one, that's what I usually say.

People, myself most importantly, tend to act stupidly when given more capability than we know what to do with. I've been in the same situation as you OP, although mine started when the company I worked for gave us pretty nice benefits just for opening and using credit cards. Suddenly found myself depending on it more than I wanted to. Soon after paying my debt off, I closed my account and I have been credit-card free for a couple of years now.

I'm not saying everyone should follow my steps, a credit card is a good leverage if you know how to use it wisely, but as I said earlier, I'm a little stupid so it's not going to work for me, which made me decide to not have it. Rather struggle now than struggle paying off my debts.

[kingvirtus09]

You know what impresses me about the author of this topic is that he immediately got out of debt, after all it was very difficult to get out of it especially if he used a credit card.
A lot of people get into debt with credit cards, did you know that? It's rare that there are borrowers who pay the lender right away. That's why I'm impressed with what op did that he really did to find a way to get out of here right away.

[benalexis12]

You said it right, you really need to set aside a budget for this so that you don't have a problem when it comes to paying or else if you miss it, the interest on the credit card will be high.
And this credit card should only be used for the right and not for the wrong expenses, although it is also true that whoever holds the credit card is the only one who has the right to use it extravagantly or not.

[bayu7adi]

A credit card is a borrowing tool often used as an emergency option when you run out of funds before your payday. While it's not wrong to have a credit card, it's not a wise decision.

A person's financial ability should correspond to their hard work in earning money. Therefore, it's reasonable and safer to live within one's means. A person's success in managing their finances is indicated by not running out of money before the next paycheck arrives. It means they won't resort to borrowing and their financial condition is deemed healthy.

On the contrary, individuals who live beyond their means tend to rely on credit cards to maintain their lifestyle, despite the financial burden they face every month.

In essence, it's essential to live within your financial means. If you're not ready for a lavish lifestyle, don't force yourself to own a credit card to purchase unnecessary things.

[kapalmabur]

You said it right, you really need to set aside a budget for this so that you don't have a problem when it comes to paying or else if you miss it, the interest on the credit card will be high.
And this credit card should only be used for the right and not for the wrong expenses, although it is also true that whoever holds the credit card is the only one who has the right to use it extravagantly or not.

Before deciding to use a credit card, I think we also need to know what things are allowed to do using a credit card,
credit cards cannot be used carelessly and we must be really wise in using them,
but back again every decision is in the hands of each and the important thing is we have to be responsible.

[naikturun]

If you are considering getting a credit card, it's important to do your research and choose one with low interest rates and fees. You should also create a budget and track your spending carefully, making sure to only use your credit card for purchases that you can afford to pay off in full each month.

[Wildwest]

for me credit cards are a big problem that will always tire us, indeed with something by credit it will be easier for those of us who only have very limited money and can make installments, but I feel burdened by buying something by credit and therefore that I won't buy something if the money I have isn't enough for those needs, but some of us can use credit cards and can benefit by managing the card so they will always use credit cards for their daily needs in spending something that is want them to use.

[smile1218]

Using credit card in a way is good to make a very nice credit standing that actually you can use in the future for loan purposes, or if you will apply for a visa etc. Use it only for the things that you needed and you know for a fact that you can pay what will you spend using your credit card. Having a credit card can tempt anyone to buy what they want that is not needed and suddenly they did not even monitor their spending, they will just be surprised that they had spent so much that they cannot even afford to pay. If you are the type of person that can be easily tempted to things that you don't need and you tend to buy so fast never ever apply for a credit card, your life will be full of debt. You should have discipline and you know how to control yourselves and also you know how to pay if you want to acquire a credit card. Never use also credit card if you will use it in investment because it is so risky.

[Gyfts]

To your point -- all credit card companies make their money off of late fees and interest. If people aren't responsible to limit their purchases to within their means, a credit card isn't worth it.

People who spend more than they should, paying high interest on credit cards I'm sure are tremendously profitable for companies. I can't find data on how many people defer payment with credit cards and it seems to me that it is not by chance, it seems to me that the companies for some very good reason for them don't want to make it public.

We live in a credit-addicted economy, just look at how states spend. So it is not so strange that many citizens do the same, what happens is that these citizens do not have the power of the printer that many states have and they put a noose around their necks.

There's data available on total credit card debt in the U.S which might allow us to draw some conclusions: https://wallethub.com/edu/cc/credit-card-debt/25533

Of course most people don't default but it's a bit eerie seeing credit card debt increase to the levels of the 08 housing crisis. It's possible these people are racking of credit card debt out of necessity seeing as the U.S. economy is slowing down (I predict Q1 GDP will indicate a recession).

I agree -- there is an overreliance on credit cards and once the interest stacks, people will spend years paying off their debts.

[Ricardo11]

If you want to use a credit card, you must first maintain control of spending.  One of the benefits of using a credit card is rewards points and other benefits.  At some select stores, hotels, restaurants and grocery stores, users are awarded back points when they make purchases with a credit card.  These reward points can be used to purchase various gift cards, travel packages and other products at low prices.  Credit cards have advantages as well as disadvantages.  It is sometimes seen that the user spends a lot of money on credit cards.  Various studies show that when a person makes a purchase with a credit card, they make 113 percent more purchases than with cash.  If a credit card user does not pay the credit card bill on time, he/she is charged a huge amount of interest.  Paying it off later will cost you a lot of interest.  Which will be very difficult for you.

[Rabata]

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

People are now enjoying a lot of benefits by using credit cards especially they can enjoy the maximum benefits in making purchases. However, those who use credit cards have to pay attention to several things while using it. One of them is to pay regular installments. If a user fails to make regular payments after using the credit card then he will face a big problem. Moreover, cash withdraw through credit cards, which increases the interest rate. All credit cards are good for those who maintain regular spending and deposits.

[summonerrk]

i am studying in college, i was really excited to get my first credit card . i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had  blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

I think if you're worried about it and wondering what you're going to do with money carefully.
The main thing to remember is that this is not your money, and you should use it only if you need emergency help.
You can't buy luxury goods and not invest with this money! Believe me, trading should only take place with Extra funds! 

When the bank gave me a credit card, I immediately cut it, because I didn't need it. Nevertheless, I did it only because I have friends who will help out with money at any moment. If they hadn't been there, I would have kept the credit card and used it.

[yohananaomi]

-snip-

People are now enjoying a lot of benefits by using credit cards especially they can enjoy the maximum benefits in making purchases. However, those who use credit cards have to pay attention to several things while using it. One of them is to pay regular installments. If a user fails to make regular payments after using the credit card then he will face a big problem. Moreover, cash withdraw through credit cards, which increases the interest rate. All credit cards are good for those who maintain regular spending and deposits.

if a credit card is used wisely, it is certain that many benefits will be obtained, because there are many facilities that can be obtained from using a credit card, which is different from a debit card.
but what you said is true, that using a credit card you have to be willing to pay according to the bill you get, don't ever make a partial payment of the bill, because the interest received is very high and this can make the bill bigger.
Likewise, like you said, taking cash using a credit card is not recommended because the interest for taking it is very large and greater than a normal loan.
once again you have to be wise in using a credit card because you will get many benefits.