Good-Guy
VIP Contributor
We all use some sort of payment methods in order to transfer money or pay people. Most of us also use some sort of payment processors to receive payments from merchants online. There are various forms of payment methods, but one of the biggest and the most popular payment method is credit card. Millions of people around the world use credit cards and it is believed that credit cards is the best payment option for all the people. However, this is not true in most cases. Actually there are a few disadvantages of using credit cards.
Credit Card Leads To Unnecessary Buying Of Items
Credit cards give the option to the user to buy things now and pay for them later. This leads many people to make more purchase of items they may never need. By the passage of time, the user actually end up in big debts. We may not realize this initially, but when the bank issues credit statements, the user usually gets shocked when he or she finds that they have spent money in an excessive way.
High Interest rates Are Charged On Credit Card Purchases
Since the bank allows you to buy items on credit, they charge heavy amounts of interest on each purchase. This is something we all know, However, what many people do not know is the fact that the bank actually increases the interest rate annually and many people fail to pay back the money on time. This leads to extra charges penalty on interest. These were some of the main reasons why people should refrain from using credit cards.
Credit Card Leads To Unnecessary Buying Of Items
Credit cards give the option to the user to buy things now and pay for them later. This leads many people to make more purchase of items they may never need. By the passage of time, the user actually end up in big debts. We may not realize this initially, but when the bank issues credit statements, the user usually gets shocked when he or she finds that they have spent money in an excessive way.
High Interest rates Are Charged On Credit Card Purchases
Since the bank allows you to buy items on credit, they charge heavy amounts of interest on each purchase. This is something we all know, However, what many people do not know is the fact that the bank actually increases the interest rate annually and many people fail to pay back the money on time. This leads to extra charges penalty on interest. These were some of the main reasons why people should refrain from using credit cards.