Owning a credit card makes you feel rich. Why? It is because you can now buy/shop anything you want. You do not worry if you have cash in your pocket. Anyway, who needs cash? you have this thin card that you can swipe whatever and whenever you want. Latest gadgets? New pair of shoes? New set of clothes? Name it and you have it.
Later on you will not notice that you are now having debt trouble and you cannot even pay your minimum dues and the worst thing is when you are in a foreign country where credit card laws and monetary policy is tight.
They say prevention is better than cure. So we need to prevent the future problem. First, ask yourself do you really need a credit card? If the answer is YES, then list down all the things that you want to buy that cannot paid in cash. Weigh in and think again, if then your answer is still YES then get one.
Next thing to do is read the rules/policies of the bank offering credit cards and the law of land on which country you are in. Remember that if you are in foreign country like UAE. If you lose your job and cannot able to pay your credit card debt for the time being you will be having a civil case and will lead you to jail for 1 month to 3 years depending on the amount borrowed.You will also banned to enter the country again as you are already blacklisted. Are you ready for these?
I am not discouraging people to use credit cards since it has also advantages. You can use it during emergency, like going home or travelling for leisure, buying stuff online for your business. Just make sure that you are using it wisely and paying your obligations on time as interest doubles every time you missed your payment.
Now, here’s my question to you. Should you say Yes or No to credit card?
About the Author:
Joshel Celis is currently working as Accounts/Office executive in a hospital in Abu Dhabi. Her previous work is Project Analyst of a top IT/Outsourcing company in the Philippines. She is a graduate of Bachelor of Science Major in Management Accounting at Central Philippine University in Iloilo. Joshel is continuously studying and investing in Philippine stock market.
