Plastic is the less official term for credit cards. If you already have a plastic, you surely have been privy to all the warnings and scary tales of how it drowned people in a mire of debt early on. The truth is that like anything else, plastics also have two sides. They have the advantages and the disadvantages. It is up to the user to evaluate his or her situation carefully and logically before making the decision to use the card. Remember you are in control and not the money. The money can and will control you only if you allow it to. So here are some advantages and disadvantages of having a plastic that will help you make up your mind.
It’s easy but easy is always not good.
When you have a card to hand, everything becomes so much more convenient. Instead of carrying around a thick wad of bills and trying to locate ATMs in the middle of Friday night when you are with friends, you can simply swipe and sign. But here’s the downside. The fact that it is so easy will make you use it more often which makes this very similar to getting bad credit loans that you will have to struggle to pay back. So use it, but before you swipe, think, is it really fine. Go here for more information about bad credit loans
You can avoid borrowing money, but there is a price to pay
See, having a plastic is like pretty much the same thing as going to a lender or a bank asking for credit loans. You can withdraw or pay until the amount on the card is over. This makes it much easier and faster than getting through all the background checks and paperwork to actually get money through. However, the downside is that the interest rate could be higher on the plastic as opposed to actually getting quick money from a lender. Remember that until you pay of the full amount there will be interest added on to every single transaction you do. Delays will be penalized, withdrawals will be charged extra separately. Are you in for it?
You will get some great discounts, but then you have to use the card
If you already own a plastic, you are no stranger to the constant string of notifications that keep making your phone vibrate. 30% off when you use your card. Buy one and get one free on your visa. The list is endless. These perks are exclusive and are actually really great. You can save up quite a bit on quality offers if you use them. However with all of these perks that are offered on master and visa cards, the catch that everyone neglects to see is that you will be getting into debt more and more. What you need to see is that these offers are part of the marketing tricks used to encourage you to use your plastic. Enjoy one or two affordable offers but just don’t go in for everything.