Quote from: xSkylarx on Today at 02:16:47 AM

Quote from: Findingnemo on April 22, 2023, 07:43:32 AM

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.

it was not until i sat down and made a budget that i realized just how much my credit card debt was affecting my overall financial health. i had to make some tough choices and cut back on some of my expenses , but finally,
i was able to pay off the balance and get back on track.

the lesson that i learned here is that credit cards can be a valuable tool for building credit points/scores and making purchases, but they should be used responsibly and with caution. it is important to keep track of your spending(like keeping a journal), pay off the balance in full, each month if possible, and avoid carrying a balance that will increase interest over time. by being mindful of your credit card usage, you can avoid debt and maintain your financial health.

i am weak at economy, is it wise decision to use credit card?

You should not use credit card unless you have the money which you're going to spend in your bank account in worst case you know the sources of income will get you that amount before the due date.

If someone use credit card in this way then it's good for them because it will help you to build your credit line so get loans for less interest rate for example while doing business,etc and also enjoy the free perks comes along with credit card for example free lounge at airports, free hotel stay, etc.

so that is really a point of credit card to to take a loan with less interest and easily got the a loan i would prefer this than using it to spend on something that later on youll pay it, i mean even you cant afford it you can still buy it and pay it in installments which my view is that it isnt good idea because why purchase it if you cant afford it in cash mostly this are wants and not the needs in our life.

Unfortunately we have been tuned in that way so majority of people don't realise the credit card trap but who knows can use it wisely and get a certain amount as long with zero interest and this will further build the credit score so in future we may get better interest rate for example while buying a house or car or anything.