The Credit Card industry is a thriving business. Just over decade ago, this convenience is offered to just the few elite and the rich. Now, this magic strip of plastic is being made available to the masses.
Acquiring credit card is being made easy by the credit card companies. The annual service fee is almost negligible, what with the convenience credit card offers.
This alternative of cashless purchasing offers convenience in shopping unheard of before. Add to these the attractive perks offered by the credit card companies and credit card is simply irresistible. Honored by merchants and establishments almost everywhere, shopping has never been made easy.
There are even items one can purchase on credit cards with zero interest rate amortized for up to 24 monthly installments.
Yet, unless a credit card user avails of the added convenience of instant cash advance, one does not have to pay any interest for these purchases made on credit for period of up to 45 days depending on the cut-off date.
Why then are there complaints of many credit card users of being brought down to the quagmire of debts? Some went to the extent of asking state legislators to regulate credit card companies and lower the interest rate on overdue accounts.
The term is overdue accounts. As mentioned earlier one does not have to pay any interest. This is true for any amount, within the credit card limits, used in purchasing and paid on or before the due date.
Of course the credit card companies made it very clear the interest rate the user had to pay for overdue accounts.
The problem therefore lies clearly on the discipline on the part of the user. The convenience of credit card use can only be fully realized if the user does his part on paying liabilities incurred through the use of the card whenever they are due.
Either the user spends more than his capacity thus he incurs large due amount he cannot pay in full or simply neglects to pay the due amount in full. Whatever the user incurs through the use of credit card that plunges the user to debt is simply one's own doing. It is rather ridiculous to blame credit card companies for the user's lack of discipline.
Credit card is here to stay and it is very convenient to have one. It is a good, if not the best, alternative to a short-term cash loan. A little self-discipline would make this convenience much more meaningful for the credit card user.
