Factorialist

Common Credit Card Pitfalls

Credit cards are not yet replacing cash and they may not will, but modern consumers have increasingly higher dependence on them. These cards simply represent one of the most important financial trends in our history. However, there are many drawbacks of owning credit cards and here are some of them.

There’s a huge difference between overspending and borrowing. When we use credit cards, we essentially borrow money from a lender, so it is imprudent to overspend. People who overspend may not have a plan to pay the money back and it is easy to overspend when we have credit cards. When we use credit cards, we don’t have the experience of feeling and seeing our hard-earned money leave our hands. Everything feels much easier and this could cause to lose track of how much we spend. Many people use their cards excessively and if they have reached their limits, they may look for other cards. In this case, we need to leave our cards at home and bring only a limited amount of cash when we want to purchase something or dine out. Dealing with physical, actual money should help us to save more of them.

Even if we read the fine print, we are bound to miss some of the essential details and the credit card companies don’t always tell us all the details. There could be clauses that cause us to lose a lot of money for the supposedly trivial mistakes. We should be aware that there are things that could be bad for us financially.

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