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Cons About Using Credit Cards

Everyone knows that credit can even out your finances and make life a little bit more easier for you. But, people also know how credit can put you in serious financial trouble if you don’t use it wisely. Unfortunately, due to the urge to embrace materialism people end up risking their credit and sinking it to a point of no return. It is important to be aware about the potential harms of having a credit card. Maybe you will realize that this is not the right era of life for you to have a credit card. Here are the main cons about using a credit card.

No matter what, it will still cost you.

Especially when you can’t pay your balance off every month, interest rate charges will hit you hard. The purchases you make over time will eventually cost you more than it really should. Remember you are only charged interest when you don’t pay off your balance by the due date. So sometimes that must-get item will have to take a seat for now. Why? Because you are 5% away from your limit and know you are not willing to give up that amount next month for the bill.

You will become a huge overspender.

If you want to master how to shop on impulse get yourself a credit card, that is what they teach. It makes shopping on impulse easier because customers become super comfortable with buying the things that they don’t need. Majority of the time overspending is done when stores are having huge bargain sales. You are at Bloomingdale's and see Hunter’s boots on sale for $50, bargain much? You have 3 pairs at home. Is it necessary or can another store make use of this $50 credit?

You might end up broke next month.

No money left for the future. When you are using a credit card it means that sometime in the future you have to give that card it’s juice back (pay the money back). With accumulated interest charges and possible late fees, you might have to use all your upcoming checks to pay off this credit card. You will find yourself repeating the same cycle every month until you decide to get tired of never having access to cash.

And you might lose everything.

If you develop a habit of maxing out your credit cards, especially during the holidays you will surely cause harm to your credit score. Some people have even lost the merchandise they purchased. Even worse, if your credit line is also a loan that requires collateral you could lose worthy property and even your home.

A bad habit with credit cards can leave you homeless with damaged credit. Now you are at the pit and can’t gain access to any of the lifestyle goodies a decent credit score can offer. It is best to have credit that goes rarely untouched. It is never too late to start handling your debts and using credit properly to build your score back up. Remember to be wise when it comes to credit. 

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