A Credit Card Can Be a Friend and a Foe
By: Andrea
Nowadays more and more people are having their own credit cards and this includes those who are still studying as well. Credit cards have their own advantages but it can easily be misused and become a burden for its users.
A credit card is usually misused because it gives the user the freedom to spend the money as they do not have to pay for it immediately. It encourages the user to spend more money than the amount of money that they actually have. Therefore, this becomes a problem when the user could not pay for the amount of money they spent the next following month. Credit card companies charge users who could not pay on time and they received profit from it. The later the user pay, the more money they will be charged by the company. Eventually, they will have an enormous debt in their hands.
There are some ways that can be done in order to overcome this problem. Credit card misuse usually occurs among students because they do not have adequate financial knowledge. Therefore, one of the ways that can be done is the government or the authority in universities and colleges could give students a talk on the topic financial which includes the right way of using a credit card. This way, college students or university students are able to avoid falling into debt.
As a conclusion, a credit card can be advantageous depending on how the user uses it. If the user uses it well, a credit card could be a help but if it is not used properly, it will be a troublesome financial issue.
References
Jahan, S. (2019). Irrational Behavioral Can Cost Your Money.
Limbu, Y. B. (2017). Credit card knowledge, social motivation, and credit card misuse among college students. International Journal of Bank Marketing.