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| Don’t
Let Credit Cards Rule Your Life
Chaucer and Divine Comedy by Dante Alighiere
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As a matter of fact credit cards are becoming more and more
popular despite numerous disadvantages they entail.
A credit card gives you an opportunity to cover services by
borrowing money from the bank and to pay on balance. At a
single glance, credit cards offer excellent release for any
business of yours.
The creditor informs that you can fully pay the balance or
make small investments. You are offered information on your
account which consists of the minimum payment due, and the
periodic interest rate. Though they promise saving your money
and solving unforeseen problems and react to the proceedings
which one may come across and that require certain sums of
money you do not have at your disposal. Consequently, complaints
about credit cards have extended in the last period of time.
Because of high competition between credit offering companies
there appear suggestions which at the first sight concern
advantageous terms for the customer. And really it requires
budget planning from the customer. He should be able to pay
the bill monthly and if there appear any financial problems,
he may no longer count on that money and as a result borrowing
without any special calculation made by the customer can lead
to poor consequences.
Hence, credit card usage only creates illusions for comfortable
life, but actually it is not so and later it disabuses you
when you get the bill per month. That is why one can spend
more money than he or she earns without noticing this at once.
It is just like being caught in a net.
When you have financial difficulties and can not afford paying
your debts, credit only aggravates your situation. And what
one is to do is to let credit cards and all the far-reaching
implications rule his life, if one may judge so. It goes without
saying that credit system in such a case becomes an additional
load for the consumer. Credit card issuers benefit from client
not paying back in time, there also may happen billing errors
which create inconveniences for the clientage.
Moreover, though there are different kinds of credit cards
used for businessmen, students, etc. they all are predisposed
to make you borrow in an unprofitable way. To some degree,
economists consider credit cards to be not the cheapest means
of borrowing in comparison with personal loans for instance.
Among the other problems one may face errors with the bill,
as tickets can not be always thoroughly checked and their
copies kept with you for a certain period of time, as there
may appear items one had not bought or ordered. Lack of control
can undermine your financial welfare. As firms offering loans
and credits of different kinds compete with each other, they
may involve clients into additional deals the latter never
wish. They offer different transactions to make their customers
stay with the firm and propose them something that is hard
to be turned down. There may be zero per cent interest cards,
gifts and pleasant stimulating items. But later on they price
out to cover the expenses. Hence, signing some documents,
even not so significant as it may seem at once, one should
be as considerate as possible.
Naturally, possessing a small credit card you do not need
to have much cash with you, and it gives you a possibility
of buying expensive things without further delay, it usually
results in excessive purchasing. One should always see to
it that the account number is confidential; otherwise it can
lead to inconvenience and insolvency. It is also dangerous
to give information on the credit card by telephone to order
necessary things. There happen unauthorized charges, if someone
used your credit card illegally, when you lost it or became
a victim of a robber. Those who complain suffer from false
charges and the companies do not agree to refund them if they
are not in time with information about their credit card loss.
Customers also criticize the actions of the companies which
neglect the fact that clients overpay but annul their balance
without any warning. Then it may take them months and years
in particularly difficult incidents to prove their case.
Using credit cards is also not so secure because much depends
on borrowers and if something goes wrong in the economic pyramid
the money put up will surely be at risk.
References:
1. Statistics for Business and Economics by David R. Anderson,
Dennis J. Sweeney, and Thomas A. Williams, 460p
2. Managerial Economics & Business Strategy Guide by Michael
Baye, 280p
3. http://www.oag.state.ny.us/health/health_care.html
4.http://www.fcacacfc.gc.ca/eng/media/news/default.asp?postingId=225
5. http://www.washingtonpost.com/wp dyn/content/article/2007/03/08/AR2007030802178.html
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