Is Your Credit Card a Lifesaver or a Debt Sentence?
The debt in the UK is continually rising with reasons for the rise spanning from bailing out banks to higher spending on employment, lower tax receipts and also, people overspending on their credit cards. With all of this doom and gloom you would hope that at least a touch of good news is heading our way alas, this appears impossible. A report taken from The Telegraph is now telling us that the average household in the UK will be required to generate an additional ?1,800 per year by 2015 to be able to repay interest fees accrued on their credit cards.
The typical household cut it’s borrowing in 2010 by approximately ?500 but many of us still need to pay back approximately ?8,000 on credit cards and loans. An increase to two or three percent in credit card interest over the next few years indicates that the increasing debt as a consequence of overspending on credit isn’t likely to disappear in the near future.
Figures in 2010 discovered that the number of credit cards issued in those 12 months, dropped to their lowest level in 7 years so it’s a possibility that the public are snubbing credit for alternate methods of payment?
Credit cards have long been seen as an alternate option to money the question is, are they necessary or a primary factor in the UK’s ever increasing money troubles? Keep reading to discover the advantages and disadvantages of choosing to use credit cards:
Advantages of using credit cards
. Credit cards can easily maximise your ability to buy goods. If you don’t have the funds handy you have the option of buying now and paying off at a later date.
. A credit card is a handy choice for frequent travellers. Wherever you may be in the world, credit cards are widely accepted; this permits travellers to pay for expenditures and deal with the rest when they get home
. A credit card can allow you to buy things online. Having your own credit cards would let you to benefit from sitting lazily in the comfort of your home looking around the web for your purchases. On the other hand, many websites will also accept debit cards.
. Savvy use of a credit card may also help you to establish favourable credit. If you continuously pay your monthly bill by the due date, your credit rating will improve which will make it easier for you to make much larger purchases such as a house, when the time comes.
. For those of you that can’t stand being weighted down with heavy wallets and purses, credit cards are a compact solution to carrying around wads of money.
Disadvantages of using credit cards
. Credit cards, with the purchasing versatility they grant you, can easily compel you to fork out more than what your natural budget would permit. This can have damaging results and you may end up paying your credit card bills for the remainder of your life if you don’t manage to curb your splurging.
. Credit cards are prone to fraud,especially when it comes to over the internet purchases. Anyone who intercepts the data from your credit card may begin using your account details for their own purposes.
. Credit cards as described earlier, have rising rates of interest and other applicable fees. So be sure to check for this, because it means that your spending is higher than the actual price tag of the things you decide to buy.
. Owning credit cards can also greatly enhance the chance of major debt because the ease of use makes shopping so effortless.
. If your credit card bills get out of hand, can be very tough to gain back control. If you don’t pay your balance by the due date you can find yourself shelling out in substantial fees.
Credit cards are one of those things that could make your life simpler, or turn it into a mess. It’s best to contemplate all of the good and bad points before buying things on credit. Ensure that you choose wisely and that you have enough money to come up with the repayment demands as it can before long get out of hand.
This short article has been composed and made available by Payday Plus.
If your money troubles are small-scale and you only need a little extra help till your pay day, Payday Plus can offer easy loans paid into your debit card account in about 30 to 60 minutes.
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