There is ever-increasing shopping paid by
credit
cards.
This
essay will argue that despite the possibility to immediately purchase an expensive item at stores and acquisition of property with
credit
money
, it is impossible to avoid the drawbacks that the use of a
bank
credit
card interferes with the ability to correctly manage a monthly budget and requires additional commissions for purchases made.
On the one hand, there are some benefits of a
credit
limit.
Firstly
, it gives freedom of action in shopping malls, if you suddenly need to buy something unplanned.
Therefore
, it is not necessary to wait a long time, accumulating the required amount of
money
, but just go shopping things right away, and
then
figure out how to return it.
Secondly
, a person with an average income will not be able to buy an apartment without a
bank
loan, so it provides an opportunity to improve the standard of living.
For instance
, to prove these two advantages of
credit
cards the report of the National
Bank
of Russia states that 92% of real estate is acquired thanks to borrowed funds from banks, and 68% of computers were purchased with
credit
cards.
However
, these advantages do not cover the problem that over time loans cause addiction and
this
is just an appearance that the
money
is yours, but in reality, people will have to return it to the
bank
.
On the other hand
, shopping with
credit
money
has downsides in that it gives an impression that a person earns more than his monthly salary,
then
it becomes a habit and in his head the amounts that can be spent in a month increase, when in fact he spends not his own
money
.
Moreover
, it is needed to pay interest for using
bank
money
, so it turns out that a
cardCorrect your spelling
show examples
owner spends on a purchase one and a half times more than it actually costs.
For example
, the community of financial advisers publishes educational booklets in which they give an example that using
credit
cards for a month and
then
paying interest is 21% more than the average monthly salary, and for a year
this
comes out 252% more than the annual income, which ultimately turns out extremely unprofitable
To conclude, while there are positive aspects of
credit
cards online
such
as the ability to buy new equipment if the old one suddenly breaks down or to buy real estate, there are
also
negative effects, namely the appearance of having a larger amount of
money
in the account than in reality, as well as high costs due to interest for using
bank
loans.