No to credit cards and Personal loans
By Shivaji N
@nshivaji (18)
August 9, 2021 10:02pm CST
Never ever take personal loan unless you don't have any other loan choices. The interest will spoil your life. It may not look like that but your entire earnings will go as interest. You could very easily see the huge difference between the borrowed amount and the repaying amount. When you calculate that that tells you whether you should get the loan or not.
Though credit cards are not dangerous as the personal loan but Credit cards are also spoils your financial habit. You will get into the habit of spending money even when you are not really capable of. There are nice ways to wise way of using the credit cards but the discipline should be there. Only use when it is needed and within our spending capacity.
6 people like this
6 responses
@jefferson126 (3271)
• Shenzhen, China
10 Aug 21
I beared a loan but no credit card.I purchased a house based on loan of bank,since then,every month i must repay loan and interest,and i will pay off it after 15 years,it is really a burden.I was scared of interest on loan,so never apply for credit card.
1 person likes this
@pumpkinjam (8763)
• United Kingdom
10 Aug 21
Having a little bit of credit can be helpful. With no credit at all, you can't build a credit score. Not having a credit score can make it difficult to get even some basics like a mortgage or even a place to rent.
Of course, if you can manage without credit then that's great. It certainly shouldn't be something to rely on. I've been in the unfortunate position of having to rely on credit for the simple reason of my income not covering costs. It took years to get out of that debt, although it wasn't huge, and most of the debt was from interest. Thankfully, I'm no longer in that position but I still have a credit card for convenience. The difference now is that I'll spend only what I'm certain I can repay so no interest payments.
@louievill (28851)
• Philippines
10 Aug 21
Loan or debt does not sound as bad if you use it to acquire assets and investments that would pay off or at least partly the borrowed amount. It becomes a burden when people buy useless things that would become a burden or liability later on.
Buy cash whenever possible, credit card for me is just for emergency use, I have a credit card that I do not use at all or if ever pay the whole amount due and not just the minimum, it's a trap!. Credit card is getting something with money you do not yet have and would still be working for
@Deepizzaguy (102889)
• Lake Charles, Louisiana
10 Aug 21
Thank you for sharing the financial advice of loans and credit cards.
1 person likes this
