Currently, most of people use a credit card in their daily life. Nevertheless, they face some issues while they overconsuming the money. The main advantages are no extra fees and security, whereas overspending money and increased risk of debt are the main disadvantages.
On the one hand, the many credit cards do not ask any commission when they are used it everyday transactions. For instance, in Kazakhstan, people widely rely on cards given by Kaspi.kz and Halyk Bank in their daily lives. Whether making purchases or transferring money between accounts, users can often complete without paying additional fees. This convenience encourages the widespread cashless payment and make financial management more efficient. Moreover, holding credit card is safer. According to a 2017 raport, more than 55% of thefts occur in areas where wealthy individuals keep large amount of cash in their homes. Using credit card generally safer than keeping lots of physical money. As a result, people prefer credit cards instead of cash.
On the other hand, the credit card increased risk of debt. Many people may spend more than they afford like online shopping or delivery services. Using credit cards makes it easy to spend money you do not currently have, which can lead to debt if you do not pay the balance in full. If people fail to repay money borrowed from banks on time, they may face legal action in a court. Another disadvantage is overspending. For example, people may buy unnecessary items such as clothes, foods, technologies. Because it feels like “free money”, they overspend without recognition. Consequently, people face a lot of financial issues.
To sum up, today people use credit cards, but some of them struggle usage problems like face large amount of debts if you do not pay it on time or spend a lot of money without recognition. However, it has more advantages such as cashless payment and safer than physical money. Also, credit card give more access for paying online shoppings.