Nowadays it is easy to apply for and be given a credit card. However, some people experience problems when they are not be able to pay their debts back. In your opinion, do the advantages of credit cards outweigh the disadvantages?
Along with the search of more comprehensive techniques to deal with the problems that might occur in the world, credit card is invented as a quick and easy way to pay the bills. With the simple steps for one to be granted, an increasing number of people are now using it. While it has some obvious advantages, the potential problems it yield should not be neglected as well. Overall, in my opinion, the benefits of such method still outweigh its drawbacks.
First of all, one of the primary functions of credit card is to provide a convenient alterative to make payments whenever is needed. This way, people are able to withdraw a great amount of money without carrying much cash around. Take purchasing cars as an example, people do not want using a suitcase carrying hundreds of thousands of dollars to make the purchase. Latest technologies even link the cards to one's phone, making it possible to pay just by one click. This way, online shopping is made possible by the use of credit cards, yielding even more convenience for users.
Second, credit card is safe comparing to using cash. It provides protection against street crimes such as theft and robbery by password protection and tracking measures. Although criminals are coming up with increasing credit card crimes, it is still not as easy as cash ones. Comprehensive planning and a team is usually needed for the process from obtaining password through to getting the card, which prevent it from becoming popular.
However, using credit cards encourages risk-taking in some way since it allows overdrafts to be made. Also the zero-interest for saving policy discourage people from saving first then spending, which is detriment to personal financial management. Thus some people who lost control and spend an amount that well exceed their repay abilities might affect the whole economic system.
To conclude, there are many advantages of credit card including its value of convenience and safety. Despite the potential problems it causes for individuals and society, the prevalence of this in recent years has proved its usefulness to people. With more measures to solve the problems, the payment method is becoming increasingly comprehensive.