Not necessarily. Let's say someone can last up to 5 years using a credit card, it can be said that they have pretty good financial management. They can proportion income and expenses. Having a credit card is actually not easy, especially reducing the desire to shop excessively. There are many cases where users fail to pay their credit card bills even after several months of use.
In conclusion, assessing financial literacy from credit card use can be done based on how long they have used it.
Topic: Does Using a Credit Card Demonstrate Financial Literacy? - page 7. (Read 834 times)
That depends on the person for sure, if you are someone who doesn't take responsibility too much and tends to spend all the time, credit cards wouldn't be ideal for you. It should be controlled no matter what the process you are doing. It's best that you have the idea or the capacity on what you are paying for.
It's really up to the person if he will be a slave to the credit card or not. For sure, you need to be its master.
It's really up to the person if he will be a slave to the credit card or not. For sure, you need to be its master.
Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.
Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
Can you permit me to talk on this using a gamblers perspective. For a gambler not to over spend exceeding his bankroll in the way he had planned it he just got to apply self discipline with how he gamble and in same direction a credit card user who lacks self discipline in how to utilize his money have to priotize his needs not to run into debts. Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
Using of cash for purchases and using of credit cards has to do with the individual. You will agree with me that there are individuals that are using cash purchase yet still running into debts and borrowings meanwhile some others are using credit cards without borrowing because they are frugal with their spending and desires. That's why I said it all has to do with the individual person.
Credit cards could open new doors for you or close the ones that you already got beforehand. It could be your opportunity for better expansion and an ally for when you need that extra cash, but I find that some people think of credit cards as an extension of their finances, which shouldn't be your logic. For one, you're practically borrowing money from the bank when you take out a loan using your credit card, that's for sure. You also have to keep in mind that you're paying interests on top of the loan capital that you requested.
Some people got a higher credit score and was able to live a full financial life thanks to credit cards, those who did not and failed miserably are 8 feet deep in debt and it's only piling up. Financial literacy has to come before credit cards, not the other way around.
Some people got a higher credit score and was able to live a full financial life thanks to credit cards, those who did not and failed miserably are 8 feet deep in debt and it's only piling up. Financial literacy has to come before credit cards, not the other way around.
I am one of the people who prefer to pay with cash. The feeling of counting the money manually causes greater psychological damage than a single click. If we say that you want to spend $2,000 on shopping, as soon as you start buying, you will find that this amount is exaggerated and that I must pay less, but when paying through banking applications. Or credit cards It's like I don't spend a lot of money. Therefore, it is not a matter of ignorance or illiteracy more than it leads to more spending.
If we're talking about how you pay your stuff and depending on how you do it will demonstrate how financially literate you are then the absolute answer in my opinion would be that you know when to use your cash and credit card and you also know how to maximize the use of credit card bonuses without the hassle of being in debt because of using it since you also know how to pay for it in time. The very act of using doesn't demonstrate financial literacy because of the factors that I've said before regarding credit cards might not be existing in your routine.
Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.
Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
Well physical money can be easier to grasp and put those numbers into perspective when they are in your hand and aren't just imaginary numbers. Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
It once worked for me, but i changed it to excel budjet spreadsheet that i made for myself.
It's way more effective as most of the time you don't see all the cash money money you have, nor it would be wise to take them all out in public and count.
Most of the time rest of your money is still just in your pocket and it's, while bank account balance is easy to check discreetly.
And what comes to credit cards, you can just change them to debit cards so you won't go over your budget as easily.
Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
This is not an entirely true because not all credit card user is in the huge pile of debt. Some is using cash for investments and investments while generating profit more than the interest rate charge by credit card company. It’s true that the majority of credit card owners is reckless on spending but credit card is not entirely bad if you are using your cash for another things that generate income.
Even huge company ask loans for their businesses if they want to expand since loans/credits offer extra cash by just paying minimal interest rate which they can be paid easily from the business profit in long term.
I would say that in some situations a bank card can be very useful, such as paying for some online services for which you cannot even use cash, or for online shopping from abroad. Therefore, I would not conclude that those who use cash are more financially literate than those who use cards, but that it all boils down to how much an individual can control himself from excessive spending, especially from buying things we don't really need.
Cards and cash have their advantages and disadvantages, and in some countries, such as Sweden, there is almost no cash at all because everyone uses cards, and more and more shops are appearing where there is no possibility to pay with cash or even with a card directly, but with the help of a special account that is connected to your bank account, and then at the entrance/exit the cameras scan you and charge you for each product you put in the basket.
No matter how someone pays, the most important thing is not to spend more than we earn (if at all possible).
Cards and cash have their advantages and disadvantages, and in some countries, such as Sweden, there is almost no cash at all because everyone uses cards, and more and more shops are appearing where there is no possibility to pay with cash or even with a card directly, but with the help of a special account that is connected to your bank account, and then at the entrance/exit the cameras scan you and charge you for each product you put in the basket.
No matter how someone pays, the most important thing is not to spend more than we earn (if at all possible).
Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
Work hard and smart and be able to meet your needs is all what it takes. I subscribe to Netflix, YouTube Premium and DSTV. I pay some bills with credit card but I am not in dept since many months ago.If you are in my country and you queue for 30 minutes to 1 hour before you are able to collect money in ATM machine, or you queue in the bank, you will be thinking of how you can avoid these delays. Using PoS for shopping has made this simple. You are literate, you know how it works and if you ou are avoiding scam, life is made easier.
Although, at times, I just do online transaction with the bank app, but that is not still cash.
Do you believe that someone who exclusively uses cash for their purchases rather than credit cards is demonstrating financial literacy? Many argue that people tend to be financially reckless when using credit cards, often forgetting that it involves borrowing money. In various Netflix TV shows depicting individuals in debt seeking advice from financial advisors, the most consistent suggestions for getting out of debt are usually to cut up their credit cards and transition to making cash payments.
Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
Individuals who avoid using credit cards tend to have a higher probability of being debt-free, showcasing financial discipline, and experiencing greater satisfaction compared to those reliant on credit cards. What are your thoughts on this stance?
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