Disadvantages Of Credit Cards

2140 Words9 Pages
Credit cards are used as a foundation for setting college students up financial future. Although this may be true, it can also bring you down every time you swipe. The purpose of this paper is to illustrate that credit cards can be dangerous because it can lead to debt and the toll it could take on the future financially. College graduates in their late 20s can face three major issues such as overspending, high interest rates, and possibly low credit scores when dealing with credit card debt. Strategic recommendations include not only being careful when using credit cards, but also limiting yourself to what you can afford so that you will be able to look forward to other possibilities in your financial future. These possibilities include, but are not limited to, buying a car, a house, a boat, vacation, etc.
Many college students and graduate students need money for school or other needs because they do not work but just go to school. A credit card is a great opportunity for them to purchase what they need to get through each and every day. Although this can be very helpful it can cause problems because some students’ needs are different than others but you can also look into different ways to overcome these habits. “Perhaps the greatest disadvantage of using credit is the temptation to overspend, especially during periods of inflation. Buying today and paying tomorrow, using cheaper dollars, seems ideal. But continual overspending can lead to serious trouble” (Focus on Personal Finance Edition 5, 2015). Some needs college students have can range anywhere from toiletries and clothes to partying in your dorm or buying drinks for friends. Using a credit card is a great opportunity to “borrow” money without having to spend what you have at the time and can be risky throughout every day purchases. “The problem with credit cards is that it’s easy to abuse them. That is what makes them a very popular sinkhole.” (Credit Card Debt What You Need to Know, n.d.) Overspending on a credit card can not only create stress as to how you will pay them back but will also create a financial whole for your future.
Jose Cesneros is a loving partner who works hard to provide for his family. He had some great uses for credit
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