4 Reasons Why We Are Spending More on Credit Cards

Image Source: Google

It’s typical human behavior that we are more likely to be cautious when spending cash than we do while using a credit card. This is because cash is tangible. When we hand it over at the cash counter it’s a visible sign of a depleted balance. With credit cards we look at the bill only at the end of the month, so it seems like deferred spends. Online shopping too has made it so convenient for us to type in the numbers and checkout via credit card payment, ensuring instant gratification and delayed payments.

So yes, there are a lot of reasons why we tend to spend more when using a credit card.

 

It’s so easy to use

Be it clothes, accessories, furniture to adore your home or office, smartphones etc. we have almost everything and anything available over online marketplaces and websites. The impulse to keep adding products to the cart is difficult to avoid.

 

The pain of payment

While spending cash, the gain and the pain go hand in hand. The gains from a new acquisition and the pain of parting with your hard earned cash. With a credit card we can focus exclusively on the delights of the new purchase. The bill only comes in at the end of the billing cycle.

 

Rewards on Spending

Besides, credit card companies offer reward points to encourage more and regular use of their credit cards. This naturally makes it very tempting to spend more under the illusion of earning some freebies as well.

 

EMI Option

Credit card companies allow you to opt for EMI payments and therefore further extend your credit period. Keep in mind though that choosing the EMI option means end up paying more in return as these companies charge interest rates of approximately 2-2.5% to lend via EMI. This is the highway to Credit Card debt.

Remember though that it is important to not default on credit card payments as they do not reflect well on your credit report

 

14 thoughts on “4 Reasons Why We Are Spending More on Credit Cards

  1. Pingback:Analysis of Credit Card Fraud And 3 Ways You Can Prevent It

  2. Pingback:3 Point Analysis – Personal Loan vs. Credit Card Loan

  3. Pingback:Credit Card Limit Increase! 3 Things You Should Know

  4. Pingback:4 Steps To Remember When Closing A Credit Card

  5. Pingback:6 Financial Challenges Faced By Salaried Professionals - Loan Singh

  6. Pingback:5 Things To Should Know About Credit Card Fraud

  7. Pingback:Loan Singh Guide: 3 Safety Practices Against Credit Card Fraud

  8. Pingback:Loan Singh Explains – What is Cryptocurrency and Bitcoin?

  9. Pingback:10 Things to Remember When Applying For an Online Festival Loan

  10. Pingback:8 Things to Remember When Applying For a Diwali Personal Loan

  11. Pingback:8 Things to Consider When Applying For an Online Loan

  12. Throughout this grand design of things you receive a B+ for effort. Where exactly you actually lost us was first in your specifics. You know, it is said, details make or break the argument.. And it couldn’t be much more correct in this article. Having said that, permit me tell you just what exactly did deliver the results. Your writing can be very engaging and that is possibly why I am taking an effort to opine. I do not really make it a regular habit of doing that. 2nd, while I can easily see a leaps in reasoning you come up with, I am not necessarily certain of how you appear to connect your ideas that produce your final result. For now I shall yield to your position however wish in the foreseeable future you actually link the facts much better.

Leave a Reply

Your email address will not be published. Required fields are marked *