Why Living on Credit Cards is a Wrong Idea

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Have you ever wondered why banks spend so much effort in selling credit cards? That’s because they earn so much from it.

Interest is going to be the death of you

Credit cards are functional, and they allow easy purchasing especially if you’re buying things online. This makes transactions so much faster and efficient while you get what you want without having to pay for it yet. Unfortunately, this is all an illusion. People just spend too much because they don’t feel they’re spending their money.

This causes a chain reaction of events that lead to you not being able to pay your bill because you spent too much. This is how banks earn. If you’re not able to pay, they can slap you in the face with interest and increase what you have to pay next month.

A lot of people have been buried under debt because of credit cards.

The solution is simple. Control your spending. DO NOT use your credit cards to pay for EVERYTHING. It’s that easy. Also, make sure that when you buy something with your credit card, you have the money in your bank account to pay for it.

Another mistake people make is buying something before they have the money because they’re expecting their incomes to arrive. What happens if you lose your job or if you have something more important to pay for?  If you don’t have the money yet, don’t buy it. It’s that simple.

Two words: self-control.

Credit cards can be used to your advantage especially if you know how to use it properly but don’t let it rule your expenses.

 

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