Although we always hear that money is the root of all evil, it is a good thing to always have. Because, nothing is possible without it. That’s why it is sometimes difficult for some people to manage their personal finance, especially when they are in a low pay job that couldn’t help them take care of their bills.
Imagine that you have a lot of bills to pay and you receive a credit card from a company, how would you react? Be careful with all your reaction, because the credit card could be a good thing to have, a bad thing to have, and also an ugly thing to have.
Below are some of the questions that will be answered about credit card:
What is good about credit card and how to use it wisely so it remains good?
What is bad about credit card and how to avoid it?
What is ugly about credit card and what you can do to prevent that from happening?
The Good of Credit Card
The good thing about credit card is that it is more convenient to use. For example, imagine that you want to do some online purchases, but it would take too long to send check to the company or the seller where you do the purchases. A credit card would help you to pay immediately, so you don’t have to wait too long for the seller to receive the payment and for you to receive the purchases.
Another good thing about it is that it is safer to use. For example, if a seller doesn’t ship the purchases, you can always get your money back even if the seller doesn’t want to cooperate. You can just report that to the credit card service company to get your money back and they would take care of that instantly.
One more good side of credit card is that you can use it for some emergency situation.
The Bad of Credit Card
The credit card could also tend to be bad if you don’t pay the balance on time. I don’t say the minimum balance, but I say the whole balance. The credit card service company would always give you an option to pay the minimum balance instead of the whole balance, which is good for people who couldn’t pay all the balance immediately. But the bad side of it is that you would always have a daily interest to pay on your balance until you pay it off. To avoid that from happening , it is best to spend what you can afford instead of spending what you cannot afford. For example, imagine that you have an income of $2,000 a month and you spend $30,000 in credit card, the minimum balance would be so high that you would not be able to pay it back. That’s what turns to the ugly sides of credit card.
The Ugly of Credit Card
As mentioned on the previous paragraph, the ugly is when you spend higher than what you can afford on your credit card. When you do that, you would receive a higher balance in credit card debt which you couldn’t afford to pay back. Most people would just stop paying, and that would affect their credit score. The best thing to do is to not use the credit card if you couldn’t afford it. Of course you could use it in case of emergency. When I say emergency, I mean real emergency.
Does that mean you don’t need a credit card? Of course you do. Everybody needs a credit card in the purse and wallet to use whenever they need and to pay the balance back immediately after they use it.
