Merits and demerits of using credit cards
There is no doubt about the benefits credit cards offer. You have no need to carry cash with you when you are carrying this plastic money. Some countries have almost completely shifted to plastic money as it is easy to carry. You can see the 2017 best credit cards listing over here. If someone gets robbed, these cards can be instantly blocked so that no one misuses them. So, there are many benefits of credit cards some of which include:
Ample payment time:
With credit cards, you do not need to pay cash at once. You just use your card and pay the bill later. So it is not an issue if you do not have cash at hand as you are given more than a month to return the payment. And here comes the problem, thinking you are not paying from your pocket, you spend more than you need and the result is a large amount that needs to be paid at bill date. So, be cautious and spend only on those items that are really needed and you know that you can return this amount.
Ease in monthly budgeting:
Your credit card bill contains all the details of your spending. Spend some time on it and you will know where and when you used that money. This feature provides great ease at keeping track of your payments and planning for the next month. You can see where you spent without any need so it can be controlled in the next month. On the other hand, while making payments through cash, you cannot keep track of your spending easily.
Do not just pay the minimum due. Rather, try to clear the amount as much as possible. In this way, you will accrue less interest if you are not able to pay the full amount in time. Study the 2017 best credit cards listing to find the lowest interest rates.
Try to differentiate between needs and wants:
You enter a shop randomly without any intention of buying anything, a product attracts you that is not your need at the moment. You pull your card out of the pocket and pay through it. In this situation, you have incurred a debt that could be avoided easily. Although having a lot of benefits, credit cards bring this risk with them. It depends on you how you keep your needs and wants separate and use your plastic money wisely.