Monday, January 13, 2014

Why we should avoid credit card

I hate the bank officer who call my house because the officer ask whether my brother had his paid credit card bill. The officer told me to send his message to my brother.

Next day, I told what officer said to my brother. He was angry because he had paid the bill before the end of the month. He called the officer to confirm the bill but the officer said that my brother's payment was late because my brother paid through a bank which has no online payment with the credit card. Next month, he paid through the bank as the officer has suggested but he was charge some fee too.

He called the credit card manager to ask about the payment, but the manager said that those were the term of credit card. I think a credit card company want the credit card holder are fined so they will get some profit. That is why credit card is expensive than cash, You should be careful with credit card.

I do not like credit card because it wastes money. My finance lecture said that owning a credit card will load you because they will charge you with high interest at the end of month. Do not trust what the credit card sales or credit card brochure.

There are some reason why credit card is so expensive, you can see the reason below:

1. Credit card's interest is so high and it will load you. Of course the credit card company want profit for the company operation so do not believe that credit card is cheap.

2.Boost us to spending more money. With credit card, you will be easy to buy at market, shop, restaurant, etc and you will forget to count your expenses.

3. You will get some fine if you late to pay the bill. As I mentioned above, the credit company try to make you late to pay the bill.


In my country the credit card trouble is increasing so high. The Bank or credit company does not want to be bothered by credit card remainder. They bid to the debt collector company for cover their loss. The debt collector company pay a half of amount of unpaid credit card bill. For example, a credit card company has 1 million dollar unpaid credit card bill, so the debt collector will bid $ 500,000 to the credit card company. Some debt collector company are dare to bid for $ 750,000.

If the company get it, they will chase the credit card remainder. Sometimes they use harassment to get money. I think this harassment does not occur in develop countries.

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