It is not by chance that banks try to issue credit cards to everyone, and in advertising they endlessly talk about the opportunities that this financial instrument provides. They want to make money on you – and they will definitely make money. Especially if the following seven points are about you.
1. You often borrow from friends
At first glance, borrowing from a bank is morally easier than constantly asking a friend for a favor. But this is where the catch lies: close relationships motivate you to remain a decent person and return the money on time. The bank will only ask for interest – there is a great temptation to postpone the payment until better times. As a result, you will not notice how you find yourself in a financial hole. In addition, regular loans indicate a difficult relationship with money. Do not aggravate the situation.
2. You plan to get a credit card just in case
A credit card gives you a false sense of security. You start to think that money is always at hand. But sooner or later, a “convincing” reason will come up to spend it. Don’t forget that this is the bank’s money, not yours, and you will soon have to pay it back. Let’s imagine a situation: there is a week until payday, and you decided to pay for delicacies for the holiday table with a credit card. It seems like nothing to worry about, but if you think about it, you wouldn’t take out a classic loan to buy a little food (which you can do without)? That’s why credit cards are advertised: this way, you are more likely to get into debt, and at any time, even for an unnecessary or useless purchase.
3. You don’t have a steady income
Freelancing is no longer a surprise, more and more people work for themselves. There are advantages to a free approach to a career, but financial stability is usually not included in the list. In such a situation, you need to plan your budget based on the income you have already received, not the expected profit, since there are no guarantees of receiving it. The bank will not be sympathetic to the situation – in case of delay, you will ruin your credit history, pay interest and penalties.
4. There is a tendency to make impulsive purchases
Admit to yourself honestly, are you ready to spend every last penny on shopping? Then stay away from loans and credit cards. Otherwise, there is every chance of repeating the fate of the heroine of the film “Shopaholic”, finding yourself surrounded by unnecessary things and with a huge minus on your bank account. This situation will not bring happiness!
5. Already have a loan or debts
The card is not a panacea. For debtors, a brand new credit card will only help worsen their financial situation in the short term. You will quickly exhaust the limit and get hooked on paying interest. As a result, the debt burden will only increase. Do not give in to the illusion that the card will save you from debt: it only pushes you to take out another loan.
6. There is no financial “cushion”
Savings are not a whim of those who have nowhere to put their money, but the first sign of a financially literate person. Even those with a solid salary are not insured against “force majeure”, and ending up in the red, even for a “valid” reason, is not normal. Do you feel a constant shortage of funds? In this case, a credit card will not help you. First, look for an additional source of income, and not an opportunity to spend money that you do not have.
7. No willpower
Can’t resist, say, an extra piece of cake? Your lack of restraint will probably manifest itself in other areas of life, including financial matters. A credit card is a great financial tool, but only in the hands of those who use it consciously and understand how to squeeze profit out of it. For example, take advantage of interest-free periods while your own funds are on deposit in the bank. Otherwise, testing your patience with the possibility of impulsive spending is a bad idea.