i am studying in college, i was really excited to get my first credit card
. 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.
I've seen many people who got broke, and until now are still broke because of wrong use of Credit Card.
Since they got that card, they are shopping here, shopping there. Swipe here, swipe there. Buying things they just want because they thought that they have money, but they overspent, and now having a hard time paying their debt plus the expenses. Well, credit card being a double-edged sword can be prevented still if you are disciplined enough to not overspend. Don't buy the things that you don't need using credit card, and before using it, make sure that you can pay it within a certain amount of time, or don't use it. DISCIPLINE IS THE KEY.
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.
I already put it in Caps Lock. Discipline is the key.
These are the problems those people who can't prevent themselves from overspending using their credit card are facing. They believe that they have free money thru their credit card, but that mindset is a mistake.
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.
Good for you that you know how to budget.
Not all people know how to budget their expenses. I myself isn't good at budgeting my money, but the good thing is that, I'm frugal enough to at least save some money for emergency funds, and for investing. Currently, I'm not using credit card because I don't know where can I use it. Making tough choices is very essential for our life. Sometimes, we come to a point where we are thinking which is better between the 2, and deciding to sacrifice something for the betterment of the other. In your case, cutting back your expenses, so you can pay your debt is a good choice. Debt over everything.
i am weak at economy, is it wise decision to use credit card?
It depends on the person who has credit card.
It's wise for a person who only uses credit card to buy the things they need, and don't overspending on it. On the other hand, it isn't wise for the people who are using it to buy the things that they want. There are some saying that you should avoid using or having credit card, but why? I mean I can have a credit card if I wanted to since I know that I'm disciplined enough to know when to use it or not. It all comes to the person who has it, and not the credit card itself.