The pros and cons of using credit cards

Credit cards are an integral part of modern life. They have both advantages and disadvantages.

On the one hand, owning credit cards has a number of merits. To begin with convenience is probably the primary reason why people use credit cards. As shoppers don not need to bring much money when they go out nor do they need to worry about running out of cash, credit cards have become increasingly popular in peoples’ lives. Furthermore, people can not only use credit cards to facilitate their purchasing, paying bills or online shopping, but at same time they can earn bonuses, discounts or rewards. Additionally, they offer a wise approach to managing personal expenses, which would help people spend money more prudently.

Seen from another angle, credit cards do have potential risks. First, impulse buying may occur while shopping, as when people pay for something with credit cards, they do not really feel they are spending money. So, the danger is shoppers may spend for too much and buy things without due consideration. Second, the monthly interest rate or bank fees will incur once you start using credit cards. Last but not least, overusing credit cards may have the potential to cause people to get into debt. Since many of credit card holders overspend and end up having to use other cards to balance their debt, a vicious cycle may result in their financial dealings which may see their life spiraling out of control with debt.

On the whole, using credit cards have both positive and negative aspects, from my perspective it is just a matter of how to use them properly and do not let a piece of plastic card control our life.