Debt is among one of the most prominent reasons that using cash is wiser than using credit. Many people will spend money on their credit cards thinking that they will pay it off at the end of the month, but, in reality, that rarely happens. The credit card companies trick their customers into believing they will get rewards, but the interest that has to be paid on credit spending completely overruns the rewards that are promised. “The average family owes $8,000 dollars in ... ... middle of paper ... ...itionally, another advantage of credit is the rewards that some credit card companies offer. Most major companies offer cash back, frequent flier miles, and other rewards programs.
Overdraft – An overdraft is a short-term source of finance. This is when the bank allows the owner to take out more money out of their bank account than they have . These are only used when they are absolutely necessary as they tend to have a higher interest rate than a typical loan. This would useful for Sports Direct if they do not have any money within in the business to purchase more stock or to pay employees. Advantages of an overdraft is that it is simple to set-up, allowing you to quickly fix cash flow issues.
Credit cards tend to be more convenient for shopping because they’re effortless to carry around and they make it painless to return purchases. They also make tracking of spending a lot simpler due to the credit card statements. But, they also are have their disadvantages. Credit cards make it easier for consumers to spend more than what they can afford. They also mean more paperwork for people to go through.
It doesn 't help that banks offer many credit cards to people, ending in high debt. Banks also encourage low monthly payments. If people pay low monthly payments, they will never end up paying their credit card debt off. They will probably end up paying for the objects they bought, two or three times. People aren 't forced to pay high monthly payments in order for it to take longer to pay the card off.
In today’s world, checking and using credit cards online are easy. Many major card offer rewards to businesses. The down fall of using credit cards is that it is more expensive. There is a monthly balance that owners have to pay off. If an owner lacked responsibility than they could face incurring late fees and penalties.
Some people think that using credit cards have a disadvantage and are not a good idea. I however think that using credit cards is a good idea and advantageous for most people. These advantages include more benefits, a better way to structure money, and it’s safer for people to use. One advantage of using credit cards is that they have more benefits and features for people. Credit cards are very useful since it is much easier to carry around than having cash.
Despite the increasing popularity of online banking, the traditional banking is still being used and traditional banking is still important as there are people who choose traditional banking over online banking. Even though online banking is an easy process of doing banking transactions, bank users still need to be aware of the danger that might come or affected you. Cyber-crime, like hacking and stealing others identity in order to gain benefits is the new type of crime done by the robbers. This type of crime is a lot easier as you only need to sit at one place and does not need to go through hardships to broke into someone's property in order to get valuable things such as money. With a single click, a robber can get money and do the crime, but with one single click too, a person can save his time, energy and ease him in doing his banking transactions.
If you don’t have enough money to meet the requirements or you just don’t want to spend the money to get a savings account, a simple container will work- maybe one with a lid. The lid will keep the money in, just in case you knock the container over and it might also deter you from sneaking a few dollars. Use the container, like you would use a bank account, to localize your money- anything from spare change to large sums of money. After some time has passed, the amount of money in your container will appear to sky rocket. Dip into the bank account or container’s contents only if you truly need the money, otherwise it’ll make saving truly difficult.
Traditionally a business owner applies for a bank loan to get funding to fund the startup phase, unfortunately usually banks decline them. An easy option is to use credit instead which provide fast and easy spending ability for a new and growing business. There are good uses of credit cards, there are also downsides. Careful use of credit cards can make them attractive as an option. First, some advantages to using credit cards to fund your business operations: • Easier to get funds • On time payments improve credit scores for the business owners and the business • There are rewards and benefits such as gas discounts, airline miles, cash rebates • Record keeping is easier.
By not educating themselves, borrowers will be scammed into spending more money then they originally intended to. As long as these consumers spend their money wisely and properly the credit card can work in their favor but until then people will continue to be in debt and spend their money in am unjust manner. Works Cited Harding, Nick. "Plastic People: How Credit Cards Changed Our Relationship with Money." Independent.co.uk The Independent, 10 Aug. 2013.