Is Credit Card Necessary in Our Life Essay Example for Free

Is Credit Card Necessary in Our Life EssayA acknowledgment computer menu is a card issued by a fiscal union to the holder in order for an ane-on-one to borrow funds often at a point of sale. It is important to honour that consultation sepa evaluate charge provoke and ar basically economic consumption for short-term financing. Moreover, the interests aerated on realisations separate are enacted usually one month aft(prenominal) purchasing is made and borrowing limits are pre-set. This is with regard to the souls card rating. Signifi nookynistertly, reference card contain a higher interest rate that is about 19% per year than majority of the consumer lines or loans of credit. Consequently, many consumer stores allow payment by dint of credit cards, an aspect that has seen the vast growth of these cards. Suze de nones says For Americans who dont pay their entire credit card bill each month, the bonny balance is close to $4,000. In addition, they are a mode of pa yment in the current world by most companies and point the civil servants. However, the various limitations like dent limit make credit cards in of import in our life. Credit cards are not necessary in our life beca determination they impose various limitations to the card holders.First, charging items, goods, and services on plastic can be convenient but encourage poor pass habits. Credit cards are readily within ones reach. Moreover, mickle walk with these cards in their wallets and handbags. This is not alone, a limiting factor, but besides encourages the issues of money wasting disease. For instance, online stores commence go away a considerable element in the current American society. Buying of goods and services can be through within seconds, especially with the home delivery services at hand. Suze in her argument emphasizes, But also realize that some of you are broke by circumstances.I believe you are Broke by Choice. This is to indicate the practices that we engage with the accessibility to the cards. Credit cards expose high rate expenditure among populate with even little goods they would purchase locally. Credit card debt is a considerable problem that each flat coat people every year. Rise in the interest rate is a limit factor towards the use of credit cards. It is evident that financial companies vary their rates within days and even a month. For instance, the interest rate may change frequently if the economy of the nation keeps alternating. This puts the credit card holders in a chilly spot.The fluctuation of interest rates has resulted to individuals going for loans since they cannot support their bills. Suze denotes, The average interest rate charged on credit is 15 percent, with plenty of folks paying 18 percent Moreover, the financial companies are after profits, and to ensure they pee-pee established this, they enact interest rates that are merely undistinguishable by the credit card holders. This exposes the card holders to vulnerability of inevitable charges by the organizations. Moreover, at times payments through the credit cards get missed. This is usual among the card holders.Various companies energize emphasized on credit card payment mode. However, it is imperative to note that during the transfer of money from the corporative, some instances of money loss have been identified. Efficiency is a factor that cannot be relied on from payment and service coherence. Furthermore, online vandalism in the track of card hacking is a current problem facing credit card issuing financial corporations. For instance, payoneer company accounts that are issued online to individuals from various regions of the world have faced vandalism with clients and card holders losing millions of cash.Hacking online credit card accounts has become a common practice in the present society. This has forced people to limit the utilization of the credit cards. Credit cards are likely to accumulate debts if the monthly charges are not paid in time. if you are late on any opposite card, your zero deal can be in jeopardy. In addition, credit card scores are trashed by the financial companies rendering to discrimination of the individual card holders. On the another(prenominal) hand, credit cards can be regarded to be very significant in the modern world. This is because they solve the issue of distance payment.For instance, an individual living in Great Britain can receive his/her salary even if working for a company established in the United States. This is because the credit cards allows funds to be deposited on the card holders card. Furthermore, the card holder can withdraw money from any card supporting Automatic Teller Machine (ATM). This is not only an advantage to the credit card holders but a limitation to knowing their bank ledger rates and various banking processes within the account. Majority of the credit card holders neglect the various conditions and terms they are subjected to during acc ount application.Considerably, for the people who do not pay their credit card bill every month, it is significant to note that their average balance is estimated to $4,000. Considerably, the higher earning individual with an annual income that ranges $75000 and $100000, the average balance is approximately $8,000. To see if you have been late on any card, not just their car. This is a remarkably high cost in incorporating credit card in aspects of payment and other financial areas. It does not make meaning if an individual is paying, for example, 18 percent interest on a $7,000 balance and he/she makes just 1. percent tokenish payment each month.This is because the individual will end up paying $20,000 in the averagely 50 age he/she will take to decline the balance to zero. It is important to note that those people who like buying goods on credit are at a big risk of ending up in great debts. The various transactions or credits that are made on the credit cards are crucial since they gain more interest to the related financial company. It is important to limit the rate at which one uses the credit card. Suze denote Push yourself hard to make that extra payment as large as possible. Otherwise, an individual will end up accumulating a good amount of dents. stipendiary for groceries and friends drinks at the restaurant at your expense is a practice will finally get one to the unpaid credit balance. The card sets an individual for many snares and traps though the card companies in order for you to turn over more creating more debts. The strategy for getting out of rid of the credit card debt is only by maneuvering the credit card companies with strategies that will ensure individuals pay the least amount possible interest rate. Considerably, the average interest charged on a credit card is about 15 percent.However, Suze says that, majority of the people pay at around 18 percent and any balance carried by a credit calls for the rate lowered as possible. In co nclusion, it is important to note that credit cards are not necessary to our life. This is with consideration on the various credit debts they can amount to an individual. Further, they enhance high expenditure through online stores including groceries. Therefore, progressive use of credit cards even with minor goods and services that can be obtained readily endangers you to debts that are critical within credit card use.The most appropriate strategy in dealing with high-rate debt in the use of credit cards is ensuring that all your cards are equally used. If you have a FICO score of at least 720, and you make at least the minimum payment callable each month, on time, you should be able to negotiate with your current credit card issuer to lower your rate. If other cards are frequently used unlike others an individual would be paying the monthly charges and other interests for free. Therefore, credit cards are a critical aspect in the financial ground of an individual.