Credit cards allow its users to shop easily without carrying cash. One of the biggest pitfalls is that the users usually overspend. Their overspending is usually attributed to the excessive use of credit cards which provides you easy money to fulfill your desire to spend.
It is very rare that compulsive users are aware about their budget. They just derive happiness by spending money on things without being concerned about the debt piling up which often becomes a serious trouble to get rid of. Banks want their costumers to overspend and not be able to pay their balance in full. Besides annual fee of the cards, it’s an easy way to make easy money.
People are also to blame for they keep the cards just to spend extravagantly. Some believe it to be a status symbol while few spend on cards just because they can afford to. This kind of spending can easily lead one into a debt trap. In fact according to research and data, this is the main reason for most to end up in personal debt. And to make things worse, the people are forced to take loans to tide over credit card dues. A vicious circle of debt, it surly is.
When the consumer is unable to pay back the loans or debts or misses an installment then he/she has to face severe consequences from the bank authorities as well as the agencies they outsource for the recovery of their due payments. If God forbid your case is handed over to the recovery agencies then the agony you would have to go through could not be explained in words. The banks’ modus operandi is to rely on recovery agencies which make the life of consumer a living nightmare until the debt is paid. The choice is people’s to make. Should they choose to have credit cards, they must use it wisely and that is the least that they could do.
Zaira Muazam
Lahore