People today are able to take out loans from the bank or get a credit card very easily. What are the advantages and disadvantages of this practice?

Nowadays, many people are availing the loan and

credit

card

facilities from the bank and other financial institutions. Most people are enjoying these kinds of facilities and take all benefits. Whereas, some individual takes a loan and other facilities from banks but they are unable to return back to them due to some reasons.

Therefore

, there are a lot of advantages and disadvantage of

credit

cards and loans but it all about the people who make it beneficial for them or create trouble by these loans. On the one hand, people get advance money in terms of loans and

credit

cards and fulfil their needs and wants and

also

make their life easy. People who are paying their loans on time

then

they get more benefits in terms of appreciation of using

card

or rewards.

Moreover

, sometimes people use a

credit

card

in their emergencies when they are short of cash.

For example

, the recently in the pandemic most the people lay off from their jobs for 2 or 3 months in that period people used their credits cards and fulfil their requirements. The best part of

credit

card

id people can buy anything from

credit

cards which they cannot afford on cash and pay it gradually in terms of monthly instalments.

On the other hand

, the drawbacks of taken advance money from banks are, people,use

this

facility for their need and they use it over the limits.

Therefore

, they get penalties in terms of paying some extra amount.

Furthermore

, getting loans and

credit

cards is very to everyone but the process of return can manage everyone because there are add some surcharges in interest and the amount of interest is huge which cannot easy to pay for everyone.

For instance

, according to Gulf News, most people are unable to pay their loan instalments on time due to the pandemic situation and they get huge penalties from banks. To conclude, People get benefits from loans and credits cards facilities if they managed their payments timely.

However

, some individuals go beyond the limit of loans and cannot manage it properly.

Therefore

, they face a heavy consequence in terms of fines and prison.