Credit Cards: Convenience or debt trap? How useful or dangerous are they in a cashless world?

In today's digital age, credit cards have become a vital part of everyday needs. Whether paying bills, shopping, or traveling, they make payments easier. The hassle of carrying cash has been eliminated, and online shopping has become more secure. If your card is lost or stolen, you can avoid losses by immediately blocking it with your bank.

Rewards, cashback, and discounts increase your benefits.
Credit cards not only offer convenience but also make every expense profitable. From purchasing groceries to paying your electricity bill, many card companies offer reward points and cashback. These points can later be redeemed for gift vouchers or discounts. Special discounts at partner brands are also common, enabling savings on everyday expenses.

Responsible use boosts credit score.
Paying your credit card bill on time strengthens your credit score, which helps you secure loans and other financial benefits in the future. A credit card also serves as an emergency fund for unexpected needs. However, caution is necessary, as late payments or negligence can harm your credit score.

The Danger of High Interest Rates and Hidden Fees
The biggest challenge with credit cards is their high interest rates. If payments are not made on time, interest on the outstanding balance increases rapidly, leading to mounting debt. Additionally, many cards have hidden costs such as joining fees, annual fees, and processing charges. Frequent swiping often leads people to spend beyond their means, which can increase financial pressure. When used wisely, credit cards can be a financial asset, but when used carelessly, they can also lead to increased debt. Therefore, it's crucial to understand the terms, interest rates, and fees before using them.

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