Not long ago, credit cards were introduced as ready-to-use, on-the-spot money, anytime and anywhere. The very concept of instant availability of funds attracted people from every stratum of society. It was a clever way to deceive everybody by luring them with ‘spend now and pay later’ policy and it succeeded in establishing itself as a one-point solution for cash-starved individuals who failed to pay heed to its false pretense. Its adoption has been a convincing trap rather than being a financial solution. The fact is you should abstain from using credit cards and instead focus on checking the cap on your spending, doesn’t that make sense?
Managing Expenses – A Difficult Game ?
A recurring need of money amongst most people is attributed to the monthly utility bills that burn your pocket no matter how hard-working you are. There is no escaping from paying bills on time and this often can hamper your morale. The issue escalates when earnings are nil or minimal and starts mounting pressure on managing your expenses on a daily basis. Credit cards might be a savior during an emergency but only to postpone the dearth in funds temporarily and reappear with a more serious and magnified ‘problem’.
Is It Worthless? ?
Initially, the credit card was a one-sided game exclusively for the convenience of people who were financially well-off, who knew their financial limitations of credit cards, who never care a damn if the economy is on the downside, who don’t pay heed when the fuel prices are sky high – why would rich people even bother even if there is a pandemic or global recession? It was never a solution for their financial woes but a mere option. Instead, bet your chances on savings or maybe liquid cash and not on something that will drain you financially, emotionally, and psychologically.
Interest Rates Are Like Doomsday ?
While using a credit card the interest rates are so high that it becomes a liability and forces you to invest time in clearing it at the earliest. For years, a noticeable complaint on credit cards have been the inability to pay interest rates that invariably reflects by affecting your FICO score and in turn, if required, disrupts your future plan of procuring a loan from banks. Balancing the funds and spending for the long-term should be a priority, primarily at times when the economic conditions are uncertain.
What is the alternative then? ?
Well, it’s quite easy to find an alternative financial service that can help you through the toughest of times and provide interest-free funds. A major chunk of the population must explore ways to make the best use of the services available.
Debts Are Normal ⌛
Borrowing money is not a cardinal sin, it’s a necessity. Every individual borrows money no matter how healthy you are financial. Everything comes with a price and borrowing money brings in debt. Debt isn’t bad if it is within your reach which means it should serve the purpose of borrowing money due to an emergency. Bad debts overtake the borrowed money in such a short span of time that it aggravates leading to a wrong reputation on the concept of borrowing.
A Marketing Gimmick ?
Credit cards often create a lot of confusion in the minds of people in the form of varying interest rates. What lies ahead is more serious than a dependable solution. In today’s world, financial support for the common man is not about access to immediate funds but it’s more on how the offering can balance between addressing the shortage in funds and longer repaying timelines. In short, borrowing money with short repay periods can be suicidal.
Bottomline
Whether you are jobless or with minimal income, freelancing, or hit by recession there is enough scope to explore alternatives to meet your expenses uninterrupted with the lowest and flexible interest rates. Invest time in assessing your situation and take the call that suits you the best. The current economic recession is not about succumbing to the pressure of no income instead it is about survival. Things can get even murkier with online hacking, allowing your credentials of the card to be compromised. Remember, in life we need to make the right choices.
