INCREIBLEhd

The Obstacles and Benefits of Using Credit Cards

Instead of simply using credit cards routinely for your purchases and services, it is wise to be aware of some of the advantages and disadvantages of this method of payment.

The Obstacles

When you use credit cards or "plastic", you are tempted to buy with nonexistent money in your bank account.
When you use "plastic, you borrow money from a creditor, who wants your money back with MANY interests.
Many interests mean MUCH EXTRA MONEY FOR YOU THAT DOES NOT HAVE (Admit it, that does not make sense).
Consider the following: If you owe $ 10,000 on your credit card with an 18% interest rate, and you pay the monthly minimum (usually 2% of the outstanding balance, in this case, $ 200), it will take 57 years and 1/2 to pay off your entire debt, and you will pay a total of $ 38,930.64 interest!
Using "plastic" today, when you do not have money, means spending the money you will win tomorrow, even before you win before you have the time to enjoy it. Which implies that when you receive your salary, you can not keep it.
If you use "plastic" today, when you do not have money, and for some unexpected reason you do not have money tomorrow, you put yourself at risk of not being able to pay your creditor. When this happens, your credit history is negatively impacted for several years.
If your credit history is impoverished, your quality of life will be affected. Future goals of getting a mortgage, a loan for a car, even medical coverage, can be difficult or impossible to get.
Some people who are in a serious state of debt with their credit card, open more and more credit card accounts, waiting to stay afloat by paying the minimum outstanding balances on several cards and making cash advances to pay their other accounts. What they do not understand is that instead of being a solution, they are simply debts that add to the spiral and their finances are increasingly out of control.

 The benefits

"Plastic" can be used for the purchase of goods and services that you need at the moment but can not pay at this time, such as short-term emergencies.
"El Plástico" may be more convenient than cash on certain occasions, such as car rental, hotel reservations, travel tickets, etc.
Some creditors give you benefits, like insurance when renting a car, miles, discounts, etc. that are granted when you use your card.
If you want to make a modification in a purchase made with a card, the Fair Credit Collection Act allows you to withdraw payment for goods and services with which you have not been satisfied.
If your credit card is lost or stolen, you are only vulnerable at $ 50.
Using a card is the most convenient method of payment whether physically, online or over the phone.
The sensitive and cautious use of credit cards is the best way to help you establish good credit.