People today increasingly use credit cards to make monthly purchases. Do the advantages of this outweigh the disadvantages?

Credit

cards are considered as plastic money to replace the original cash in some critical situations. In

this

modernised world, predominantly their

usage

has been increasing drastically by society for paying their monthly expenses because of its merits.

This

essay would discuss the outweighed advantages over disadvantages with relevant examples. The effective

usage

of

credit

card

brings in a certain kind of discipline to the individual. A little more in detail,

credit

card

payment gives an additional benefit of using the amount from the bank without interest for a maximum of 50 days.

Consequently

, to utilise

this

benefit, people adopt to proper

time

management by paying their bills on

time

.

For instance

, the

credit

score of citizens is increasing in the recent past years by 17% as per the RBI statistics because of timely payments.

In addition

,

this

avoids hard cash

usage

,

consequently

, drives the nation towards the digitalization. To be more precise, every transaction done by the

credit

card

becomes a taxable amount and counted as a white transaction.

For instance

, the governments are pushing the citizens towards the digitalization by decreasing the interest rates of banks.

On the other hand

, untimely payments make an individual fall under defaulters by the banks. There is a certain

time

period provided by the bank for each individual based on their transaction dates. People have to abide by that and payback to the banks on

time

.

For example

, there are 13% of the overall

credit

cardholders are blacklisted as defaulters by the banks in the

last

year.

In addition

, over

usage

of money beyond their limits is another criteria, pushing the individuals to avoid the payback to banks. To be more precise, people are losing their financial strength and overspending beyond their capabilities.

For example

, 8% of the

credit

card

holders are declared as bankruptcy every year against

this

reason. To conclude, the majority of the people across the world are using

credit

cards for their monthly expenses. While there are ignorable disadvantages of

credit

cards, the advantages outweigh the disadvantages if every individual is committed and accountable while using the

credit

cards.