Advantages vs. disadvantages
We have listed some advantages and disadvantages of each modality. Check it out below and understand which option is right for your moment:
For those who organize well, the card payment period of up to 40 days can be great, making your life easier and optimizing your time!
Also, the credit card allows you not to carry large amounts of money. Also, it allows you to buy goods in the comfort of your home, via the internet!
Also, if you make good use of the card, you can accumulate points and redeem them for various benefits.
When misused, a credit card can give a false sense of having more money than it actually has, leading to consecutive (unnecessary) impulse purchases and enticing consumers to purchase (easy and frequent purchase). These situations invariably end in debt.
In addition, credit card interest rates are very high, especially when you do not pay the full amount used and late payments.
Although debt works like “digital” money, it can be advantageous in some situations. The first of these is in terms of safety. The money is in your checking account and not in your wallet. If your wallet is stolen, you can lock the card before it is used fraudulently.
There is also the possibility to track spending by bank statement and applications. This helps you organize your spending and get an overview of how you are using your money.
Regarding the disadvantages, the lack of installment payment option and the low choice of loyalty / benefit programs are some of them. In such cases, he is best advised to pay lower bills – and that will not compromise income as a whole.