For some people, credit cards are always a double-edged sword. The function of credit cards is usually really useful, especially if you want to get more discounts when using promotions, especially if the place is also available to take card payment. On the other hand, the use of credit cards can also be a cause for you to get into debt, which can lead you to other debt effects. Here are 3 reasons why you can get entangled in credit card debt.
Frequently Use Credit Cards for Entertainment Funds
The difficulty of rejecting the invitation of friends or family to go out on weekends can usually be the starting point for you to start using credit cards for entertainment funds. When making a transaction to pay for meals or other things, a credit card can be very tempting to use. Not to mention that there are currently many promotions that have sprung up in restaurants and attractions. Payment using a credit card can usually provide more promotion than payment by cash. Unfortunately, the use of credit cards without control for entertainment funds can backfire and even make someone entangled in credit card debt.
Frequently Shop Online Using Credit Cards
Similar to using a credit card for entertainment funds, you can usually get more discounts when shopping online using a credit card. Generally, applicable promotions are additional discount discounts or payments in installments with a 0% discount for several months. Even though it is attractive because it has no interest, still shopping without control with a credit card can only make a person in credit card debt. Assuming you have 5 items purchased in installments of 0%, still, you have to provide sufficient funds to pay each arrear. If there are not enough funds, of course, the 0% installment opportunity is useless, right?
Forced to Use Credit Cards for Emergencies
One other cause of being entangled in debt is because they are forced to use credit cards to meet emergency conditions. Usually, to meet urgent funds it is not uncommon for people to rely on credit cards to cover fees. Some of these emergency conditions such as accidents, funds for home renovation or vehicle repair, or when the card owner suddenly does not have a job or steady income. The problem is that even though the bank knows that this is an emergency and you are forced to use it even though you know you are unable to pay it off, the bank will continue to pay regularly every month.