The credit card - a blessing or a curse

Nowadays there is a tendency that people borrow money more often. Most of us have a credit card, a mortgage and prefer to buy a car or a new smartphone on credit as well.

There are a number of benefits to have a credit card. As we know, the credit cards are plastic cards with a reader which is connected to our bank account and we are able to pay by a credit card. To pay with a card is easier. You don’t have to carry with yourself a wallet, all your money is at a hand’s distance.  Or if you carry one with credit cards in it, you don’t have to worry if you will lose your wallet because with one call you can block them. While if you lose your wallet, you lose all money there and the chance to be returned is low.

Some people are good at trading and often they take a credit or mortgage one of their properties. With that decision they receive a lot of money quickly for their business but also then they promptly return the money in pawn. You can buy a car on credit as well. You can take credit and every money to return a small part of the money. Most of the people prefer that way because often they don’t have to tackle the problems in their budget.

On the other hand, to have a credit card, a mortgage and buy something on credit is risky. If you lose your money and understand that lately your money can no more be in the card. There is a way to draw all money from a card only with its ID number or IBN. Also when you pay with a credit card there is chance to take you more money than are significant. To take a credit is a knife with two blades because if you aren’t able to return the money, the bank will sell your property and you will remain with nothing. The situation with a mortgage is the same as with the credit.

To sum up, I reckon it is riskier to mortgage or buy something on credit than to have a credit card. The damages from a mortgage or to be in debt are more dangerous. 

Radoslav Sozonov, 2019