Since the introduction of credit cards up till now the world has seen a tremendous increase n the number of users of credit cards. Majority of the people in America today can’t be found holding cash and do almost all of their transactions with the help of credit cards. However, the fact remains that cash is one of the safest options compared to checks and credit cards.
In case of cash one is always aware and alert of his financial status and spends accordingly which reduces the chances of getting into debt. Credit cards on the other hand drastically increase the probability of people going into debt and each year more and more credit card users are getting into debt. As more and more people start owing money, the effect on economy becomes adverse. It has been estimated that Americans owe more than $387 billion on their credit cards. This frightening number averages to about $3,900 per family.
With credit cards, people do not get to realize the amount of expenditure they have done as it directly is not going out from their pocket. Just a swipe and you do not get to know how much over expenditure has been done.
While people can surely limit the use of credit cards, it remains true that they can’t actually get rid of it because its usage applies everywhere be it online or in day to day lives.
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