Hello my dear friends, welcome to my blog. Today, we are talking about Credit cards! That, Is Credit cards good or bad? Well, it’s Good. I don’t use it. Why don’t use! Because if I am earning Rs 2 lakhs a month, then I could only buy a product in credit for Rs 2 lakhs.
How it works it. You don’t have to pay any interest for 50 days. So if my Credit card limit is Rs 1 lakh, I don’t pay any interest on its limit in 50 days. So you will be a question. What is the difference between a Credit card and a debit card? Right! In debit, get money from your bank. But in credit, you get a loan from the bank. But here, the loan is interest-free for 50 days and after that, you need to pay them the interest. The interest is too high. Now if I didn’t pay them for 51 days, they will charge me the interest for 51 days per annual. So nowadays, you have an option of the auto-debit for the 50 days.
So why need a credit card, let’s understand. You need not give them money for 50 days. If you keep in money in the bank for 50 days, then you will earn the interest of it. So you want then do it. But keep in mind save your self from the trap.
Guys have a salary of Rs 20,000 and their expenditure is 50,000. So, they keep on using the Credit cards again and again. So here they provide an option. If you a credit of 25,000, then you need to pay Rs 5000 now and the rest in EMI. But strategically you paid Rs 5000 now and paid a high interest on this. Means interest/12 months compounded and you will be paying the same amount afterward. So you had a loan of Rs 1 lakhs. You paid Rs 5000 and you need to pay Rs 95,000. They will charge you interest on Rs 95,000 and if will become Rs 1 lakh again.
So, you are paying to them from your home. So it how Credit card works. People attract easily to these schemes and get trap in this web.
I have Rs 1.5 lakh limit, and I can have anything now and this puts them in a trap. If you are in a trap, then have a personal loan and you can pay them easily at 18%.
I hope you understand, Is Credit cards good or bad? Okay, my friends share this blog and If someone unable to do financial planning, then so send them this Blog. If you like this blog you can also read my other interesting blogs. You also read our blog about financial planning.