Credit cards seem to be an easy way to provide you cash when you don’t have it. But when you fail to pay your monthly bills, you will end up spending a lot of money as interest. You might think that you will have a bad credit score if you do not use a credit card but these cards can do a lot worse than good if you allow it to have control over you. Credit cards tempt you into buying things which are not in your budget and the things which you don’t need in your life. Credit cards are not for everyone; if you use it lavishly, you will have to face a severe financial crisis.
The following are some of the reasons why you don’t need a credit card:
You will spend on things you don’t need:
Most of us tell ourselves that we have control over us and that we would not spend on unnecessary things. But there are several times when we unknowingly buy things out of our control, and we won’t even know that it was an expense that was against our budget. Commercial companies these days are so tactical that they easily trick you into believing that you are in need of their product. But if you take some time and think about it, you might not even use it. When you believe that you need something and don’t have the money to spend on it, you automatically tend to use your credit cards.
Expensive credit card interest rates:
If you fail to pay credit card bills, you will have to pay a considerable sum of money as interest. If you don’t have the money to buy something, then do not buy that product. If you pay using your credit card and miss out on paying your bills on time, you will have to pay a higher interest rate and thereby you are indirectly paying a lot more for that product. To avoid this, you can start to save and come back again to buy that product if you are desperately want it.
Invasions of privacy:
The world is filled with data mining industries, and all the marketing companies are keen on knowing what purchases you have made so that they can direct related content to you. It is quite impossible these days not share your personal data.
If you keep using credit cards and not pay the bills, you will end up in a lot of debt; this will mentally affect you, and you tend to get more depressed and worried. If you happen to have a family who depends on you for various things, you will not be in a position to provide for them. If proper budgeting is not done, it can even ruin your relationships.
One less bill to pay:
None of us like paying bills and none of us like paying a late fee. If you have a proper budget, you will spend wisely, and you will not have to worry about using credit cards or paying its bills.