Follow Us:
Monday, July 16, 2018

‘Credit cards increase our urge to splurge’

A schools’ initiative from The Indian express. Quest asked students of Mumbai schools: Do credit cards do more harm than good?

Mumbai | Published: August 4, 2014 12:52:56 am


Credit cards are always a big threat to shoppers since there is a chance of theft and the purse getting stolen through unwanted measures.

Credit cards after being robbed get misused. Also,some shops do not have the credit card reader and so it gets difficult for shopaholics to do their shopping.

Credit cards can sometimes be difficult to trace, if it gets into wrong hands.Credit cards can be used by anyone who can forge signatures and thus it would create problems for actual users. Thus, using money in the form of cash is way easier than credit cards.

Amos Dmello,VII-A,                 
St.Lawrence High School

Credit cards cause way more trouble than they are worth. When you use a credit card to pay for something, you are living beyond your capacity. You are putting yourself in debt and paying high interest rates. I believe they do more harm as people get into debt and the credit card holder does not have enough money to fully cover the amount they spend. They may be helpful when you need money in emergency situations but if you are unable to pay the dues, it could become a burden that you cannot bear. On the other hand, if you use cash for your purchases, you may not have “good credit”, but you will surely not be in debt. Staying out of debt is much better than “good credit”.

Dhairya A. Parekh,X,
St. Lawrence High School, Borivli (W)

Are you a credit card owner? If you are not, the thought may have crossed your mind. After all, you have likely received numerous offers in the mail or you may have even been presented with credit card offers online. To determine if having a credit card is the best decision for you, you are advised to know how these cards are more harmful than good. Perhaps these cards are easy to use. Many shopkeepers give some discount on using these credit cards. What does this mean for you? It means that credit cards are becoming even easier to use. With this card, we can do online shopping. Online shopping these days have skyrocketed world over. Many credit card companies offer balance transfers, rewards, and so much more. It is also important to mention the protection that you receive. In the event that your credit card gets lost or stolen, you should not find yourself responsible for any illegally made purchases. With that in mind, it is first important to fully review each credit card application you complete. Most credit card companies have rules and restrictions, concerning theft protection.  You likely already know how large of a problem credit card debt is. It is something that millions of Americans suffer from. Credit cards can harm you, if you are using them to purchase items that you cannot afford. Credit card cause more trouble than they worth. If you are purchasing an item on credit card, you are putting yourself in debt and high rate of interest. Sometimes people get fooled against the credit card offers given by companies. Sometimes the debts acquired through these cards put people in a bigger financial mess and ruin their credit. One more risk of credit card offers is that a person is given a chance to take existing balances and put them onto this new credit card. It sounds great.  But reality is different, that is, they provide very low amounts. By proper usage of your credit card and making on time payments, you will not be a victim of credit card debt. If you don’t pay their money, then credit card is harmful and not a good thing.

Therefore as common survey goes, if it is not an urgency or emergency don’t get a credit card because they do more harm
than good.

Arin Mashta,
DAV Public School

Credit card is the need of the town these days. Often referred to as “plastic money”, it is the apt source of cash in case of empty pockets. But it is one of the prime reasons which may turn our wallet void of bucks. Credit cards always increase our urge to splurge. We spend beyond our capacity, forgetting that the card favours the bank and not the frugal. Since no direct deal in cash is involved, the lazy bones especially avoid counting the amount of squandering done. This is the indirect loan we take from a bank. We impetuously pay more than expected because of the additional rate of interest. These cards ultimately turn futile and a deficit transaction for all users. Though these credit cards do more harm than good if you cut your coat according to your cloth, you may escape the detriment.

Harshala P Raj, XII A,
St. Joseph’s High School & Jr. College, Kalamboli

Credit cards in other words are also known as hard currency. It is a very useful thing if used in a good way. Because of credit cards, the risk of carrying heavy amount of money has come under control. It can be easily carried anywhere and we can use as much money as our requirement.

But if it is robbed, it can be a great danger. If a person comes to know about someone’s credit card password, that person can use it to shop  or use it on internet. This can be a great loss for the person who has lost the card. If a person robs a cheque, then that person can be caught as he has to go to the bank for getting the money. But if a person robs a credit card, he can take out as much money as he wants online. Therefore, it’s near impossible to catch the robber.

Hence, as there are good sides, in the same way there are bad sides of the credit cards.

Himanshi Dave, lX-C ,
St Xavier’s High School, Borivli (E)

Credit card is a dangerous thing used by us which causes harm and loss, for those who take it thinking they don’t have to pay cash. Credit cards are potable and can be used instead of foreign currency. But, if lost, can create a big problem for the owners. If credit card is used by some unknown, care should be taken to get that credit card sealed with the help of the bank and one should ask the bank manager to keep a trace on the credit card because ones lost would never be found again.
If a relative uses the credit card, make sure that you ask for the money with drawn receipt. So, we come to the conclusion that there are many advantages but much more disadvantages.

Zalak Makwana,  lX-B,
St Xavier’s High School, Borivli (E)

A credit card is a payment card issued to a user as a system of payment. It allows us to pay later for goods and services that we enjoy. There are some benefits of using a credit card. People prefer it mainly because of its convenience. All we have to do is take the card with us if we have to shop. It is not necessary to carry heavy cash which at times may not be safe.
Now-a-days credit cards offer rewards and benefit packages to its user. The reward points offered can also be redeemed for cash, product or air tickets.

But credit cards have their own demerits. They charge extra fees and interest for every usage. So the customer has to pay a certain percentage of extra money on every payment on a wider perspective. Customers are likely to spend more when they pay by credit card and never think twice before shopping. This may be because the customers do not experience the actual pain of payment. Further more, credit cards increase consumption in an unhealthy manner. The card holder is put to a lot of inconvenience if he loses his credit card. It takes him more than a month to get a new one.

The present generation is hooked to credit card. It gives them a lot of freedom in terms of buying. So parents have to keep a close watch on them.

The concept of “to save and buy” must be inculcated in children from their youth. They must be taught “how to” and “when to” swipe the card. There is an increase in crime rates in the society and these can be attributed indirectly to these
credit cards.

So in my opinion if the credit card is used wisely, it is an asset, but if misused, it can damage the society as it encourages people to spend beyond their means.

Kishore Gujaran,
VPM’s Vidya Mandir

The ease in swiping a credit card for a purchase has its pros and cons. It may either help when handled properly or become a detriment. If you are able to pay your bills on time every month and not carry over the balance, credit cards are a great convenience. The cards can also land you deep in debt. This often occurs if you are unaware of terms of credit card agreement, and if you carry too many cards.

Credit cards can have their disadvantages, though especially when they are used in an unwise manner. Some consumers feel compelled to spend more money than they have. Consumers may continuously roll over a balance for several months. When you default on credit card payments, you are charged with late fees and interest, increasing your debt load. Carrying a large number of credit cards also isn’t too favourable in eyes of lenders. Acquiring too much credit card debt can ruin your credit score. Studies have indicated credit card debt as a significant factor in consumer bankruptcies. Credit card fraud is a possibility.

Simran Dhami, XII C,
St. Joseph’s High School & Jr. College, Kalamboli

For all the latest Mumbai News, download Indian Express App