Experts advice : Credit Card Is Your Worst Enemy never use it

Using a commercial bank credit card offers for someone is like having the money they always loved to have but which has to be payed with interest back and if not paid on time the flock of these crazy debt collectors come and haunt you so the question is should you be using the magical credit card or not.

lets see what some expert advice has to say.

What is a credit card?

Commercial bank credit card offers is defined as a type of money that is mainly valued in a card unlike debit card it is given by financial institutions as a pre approved credit for spending money which they can later repay but with added interest. 

Credit cards given by banks provide customers a set credit limit which he can use to pay for his purchases without having to pay in cash or other medium. 

See guys the credit limit of the card you are using is mainly decided by the bank as it is their way of looting people but they say they do it highly depending on the customer's credit score and his monthly income.

Commercial bank credit card offers are used vastly and are a part of daily lives of people. Still we highly recommend not to get a credit card.

Just say no to credit cards

The crazy credit run starts from your college, you will get in lured with special offers from credit card companies. There is a reason for this. They want to hook you very early on using their systematic commercial bank credit card offers and now guess what their are direct credit apps. 

You know what it is a fact that the 70 percent of the youth in graduating college have commercial bank credit card offers and credit card debt (before they even have a secure source of returning money as they don't have good paying job).

Getting hooked and dependent on commercial bank credit card offers is as bad as getting hooked on drugs. Its like addiction of alcohol when you start using a credit card, you’ll want to use it more. 

Then, you will want to get more and more credit cards because they have special offers.Before you know it, you’ll be leaving college with more debt than you can handle for the rest of your life.

You can also compare having a commercial bank credit card offers to having a very deadly dangerous debt that you have no idea how to use. Pulling it out the first time may make you nervous and it will hit you back sooner than you realize.

But the more you take it out, the more you get attracted to it as you want a new shirt, an expensive dinner, or just some awesome  tickets to a concert all your friends are going to and you have your magic money credit card.

 Unfortunately, you don’t have the money, but you have the credit card. It’s so easy to just use it now and pay later. Don’t do it.There is absolutely no reason to have a credit card in college. 

You should and must use the old way of checks, a debit card, or cash. Buy only what you can really afford. College is a time to enjoy life not to dig your own grave.

 It’s also a time when you see other people doing things you want to do the most and having things you want to have and own. You can seriously and literally enjoy life on a grand scale without having a credit card. 

Live within your means. This also means living without a credit card while you’re in college.

Understand funda of credit card

By this, we mean you should understand the high over valued interest rates. There is huge scope that you can earn good on your money, and, just as importantly, understand what amount you are in reality paying to borrow this overvalued money (i.e. commercial bank credit card offers).

Let’s take a simple case:

▪You put up an amount of $5,000 in an account that earns you 5 percent interest annually for five years.

▪After one year, you will have $5,000 + ($5000 x 5 percent) = $5,250.

▪After two years, you will have $5,500 + ($5,500 x 5 percent) = $5,775.

▪After five years, you will have a  much bigger value and if you decide to smartly invest in the stocks who knows it can be doubled much much faster.

Now, remember the credit card example, in which you’re paying interest (at a much higher rate than you can ever get in a savings account—because that’s how these credit card companies make so much money):

▪Purchase a $25,000 home entertainment system with your credit card.

▪Your credit card has an APR (annual percentage rate) of 15 percent.

▪You have to certainly pay the minimum payment of 2 percent of the balance.

▪Your first payment is $400, of which $125 goes to interest and only $75 goes to principal.

▪It will take a period of seven years and close to $33,000 to pay off that $22,000 bad credit card purchase. So, you’re paying an extra $10,000 for something because you bought it before you could actually afford it!

It is an easy concept to understand ; You save money, you invest it properly, and it goes to work for you. 

The other truth to the story is if you borrow a huge sum of money and you end up paying higher interest rates, money starts working against you, and the slippery downward slope begins badly dragging you down my friend!

If you understand this principle and the previous ones regarding credit card and debt management , then you will always pay off credit card debt before saving money (the interest rate that unwillingly you’re paying is always higher than the interest you will earn on savings). 

Hence the better choice is not to ever have commercial bank credit card offers and never use a credit card.Enable GingerCannot connect to Ginger Check your internet connection
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