Disadvantages of credit cards nz

Disadvantages of credit cards

Disadvantages of credit cards  

Looking to get a credit card ? Wan to to know the disadvantages of credit cards? Find out some of the bad sides of credit cards before you get a credit card. Loan nz has sourced some of the main disadvantages to help you decide if getting a credit card is best for you and your family.

Disadvantage of credit card 

  • Over spending. Since purchasing with credit card does not involve actual exchange of money, therefore, the card holder feels nothing is being paid at all by that person. This is one of the most negative points about credit cards.

  • Unpaid balances. One can tend to forget paying the credit card bill as payment is done once a month. In this process of unpaid balances, higher interest rate is charged with overdue accounts.

  •  People tend to have more than one credit card and those credit cards all have limits. And then adding up all the credit card limits eventually puts a person in deep thought regarding how to overcome the habit of spending to extend income.

  • High interest rates. Most credit card companies charger hefty amount of interest on balance that is not paid off end of each month.

  •  When a consumer does not pay their dues in time, they are more likely to end up in debt. It does not take long for a person to get into debt, but it takes them a lifetime crawling out of it.

  • Credit card PIN theft, using skimming devices.

  • Most credit cards have annual fees.