ADVANTAGES AND DISADVANTAGES OF CREDIT CARD? IS THE PEOPLE OF MIDDLE CLASS USE MORE CREDIT CARD THAN OTHER PEOPLE? - PTE Academic study guide

ADVANTAGES AND DISADVANTAGES OF CREDIT CARD? IS THE PEOPLE OF MIDDLE CLASS USE MORE CREDIT CARD THAN OTHER PEOPLE?

Modern wireless POS-terminal with battery and GPRS module

Credit card

Credit card is defined as “It is the combination of two words first is credit means The ability to obtain goods or services before payment, based on the trust that payment will be made in the future and card is defined as A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit”. According to my views, I am partially agree with the statement that middle-class people use credit card more than other people.

First of all, it is convenient for those people, who don’t want to carry cash, when someone is going for shopping. Another benefit is sometime people of middle class have situation in which they have no money for buy grocery and pay bills, so through credit card they can easily solve their problem. A person can do shopping and pay bills through it. Bank provide card limit, which it set according to the person monthly income, he has to pay little amount of interest. Thirdly, it is the best way to shopping online. we can watch  internet goods and products cheaper than showroom prices and more variety on internet. We can easily use credit card on internet by just answering some option very quickly. Fourthly, If someone go abroad then he has no need to convert currency because when we go abroad if we want to do shopping, then we just have to swap card, currency will adjusted automatically by system.   So in these ways credit card is very beneficial for middle-class person.

On other hand, we can say that some people use credit card for shopping, for their useless name and fame. Secondly, some people of middle class have less income as compared to other persons in their economy, so just for maintaining their standard and their show off they use credit cards. So they also have to pay interest which is useless. Another one is, if a person is not able to refund bank money in proper time, then he will come in black list of bank. Then he will not able to get help from bank like home loan, car loan etcetera from bank. This whole problem occurs only for raising their standard. Thirdly, when a rich person use credit card,(who has too much income) he has no worries about paying interest but middle class people are not able to do the same. Fourthly, interest of credit card is very high, which is not affordable to pay by a normal person of middle class. So it can also become burden.

In the nutshell, I would like to say that in 21st century credit card is very good facility for every person. But everyone must have to use it according to their family income and condition. We must not forget that a credit card demands to be used carefully, like most modern devices is neither good or nor bad like most modern devices

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