Quote from: Ultegra134 on April 17, 2023, 08:25:02 PM

Quote from: Wind_FURY on April 17, 2023, 11:16:56 AM

Quote from: Ultegra134 on April 15, 2023, 03:25:02 PM

Quote from: Wind_FURY on April 15, 2023, 01:45:57 PM

Quote from: cafter on April 11, 2023, 05:12:18 PM

i am studying in college, i was really excited to get my first credit card Wink

. i thought it will give me a sense of independence and allow me to buy things i could not afford with cash.

though, i quickly learned that credit cards can be a double edged sword. while they can be helpful in building credit, they can also lead to debt and financial trouble if not used responsibly.

at first, i used my credit card reasonably, only for like emergencies or small purchases that i knew i could pay off in full each month. but as time went on, i began using it more and more for larger purchases and impulse buys, without really thinking about how i would pay the balance off.

before i knew it, my credit card balance had blown up to several thousand dollars, and i was struggling to make the minimum payments each month. the interest charges alone were eating up a significant portion of my income, and i felt like i was going under debt.

OP, NEVER USE YOUR CREDIT CARD FOR "SMALL PURCHASES", ESPECIALLY FOR UNIMPORTANT PURCHASES.

For emergencies yes, and for IMPORTANT large purchases for items/things that you truly need, like a laptop to use to be more productive and earn money, or an item that you can use to start a small business = definitely yes.

Not necessarily. I've been using a credit card since I was 20, in university, with a small credit limit though. I always paid the monthly bill on time and frequently used it for petrol, groceries, or even other purchases because I was receiving a small cashback each time. Now I have a proper credit card with a large limit that I used to buy my motorcycle in interest-free installments, on which I also received cashback. I'm using it almost everywhere to take advantage of it; it's not too much, but it's still better than nothing.

The trick with credit cards is to pay them always on time and to not fall into the trap of installment payments, buying things you don't need or can't afford and going into debt for several years in order to repay them.

Petrol and groceries are things you need, it's definitely OK. I'm talking about those small purchases like trendy clothes that you don't need, or something like sunglasses, just things that we want and don't truly need. Because if you can't afford to pay in cash, don't pay for that on credit. It would be a different situation if the person is rich.

I understand your point, but I meant something different. I can also afford to buy expensive clothes or could have bought my motorcycle with my debit card, but instead, I prefer to use my credit card, firstly because of the cashback and, secondly, because I'm basically postponing the payment of the item or service I'm purchasing for a month. I know the latter sounds a little stupid, but it's purely psychological and makes no difference. We also don't have the credit rating that the USA has.

Clothes, that's a small purchase = debit card. But I do understand your use of the credit card because of the cash back value. Although you also said you pay the bill in full right away, that's OK. The point is, avoid paying interest as much as possible, especially things you don't truly need.

The motorcycle, big purchase = credit card, especially if you don't have more than ten months worth of savings, it could help.

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The issue starts if you're overpurchasing things you don't actually need and start piling debt on your cards. An easy way to fall for this is with interest-free installments.

YES!