Restrict the use of plastic money

Jagjit Singh

I AM sure all of you know as to what I am referring to when the word “plastic money” is used. If not, then just open your wallet and peep inside I am sure you will find a credit card of your own.

The modern society encourages consumers to practice the philosophy advocating ‘buy now and pay later’.

This has become possible with the prevalence of credit cards and their easy availability to any human being. On a normal day at least 2-3 phone calls one receives, can easily be attributed to those sales executives who try their level best to convince you to buy a credit card. The so called convenience offered by these credit cards can easily lead a person to spend more than what one is required to, in normal circumstances.

That’s why it is so easy to get carried away with spending spree, and eventually end up ‘knee-deep in debt’. Nowadays it has become a fashion to keep multiple credit cards; otherwise one can be termed as a backward or a traditional person.

Though this situation got created due to the undue aggressive marketing practiced by many sales executives, who in order to achieve their monthly business targets, are ready to trap any person to buy credit cards without clearly explaining its repercussions on the customer’s day-to-day life. Do you know that the mere presence of a credit card in the pocket enhances one’s impulse to spend? This is quite true as I have experienced myself so many times.

Mere presence of Credit Card make me feel comfortable and I don’t care how much shopping my family is doing. But on a day if I am not carrying my credit card then I become extremely cautious in my spending. Why it happened that way?

Confused, the answer is obvious! During the time when someone carries the credit card in his/her pocket will not be worried on the immediate payouts and thus end up overspending.

However, when someone is without the Credit Card, he/she become cautious in spending, as you are required to make payments out of the hard cash placed in the purse.

On close review of the above kind of behavioural pattern would indicate that the mere presence of a credit card in the pocket strengthen our impulse to spend and as a result sometime we end up buying non-essential items, which otherwise could have been avoided, had there been a need to make upfront payments.

Though it is easy to understand that at the end of the day, money spent on the shopping whether through a credit card or upfront payment is one and the same thing, except that under a credit card one enjoys some grace period to pay.

However, before I go further let me put forth a disclaimer that I am not out-rightly against possessing a credit card. But what I am trying to advocate is the caution which needs to be applied while buying things through a credit card. Therefore there is a need to get educated on the usability of credit cards considering all pros and cons.

The moment monthly outstanding payment bill for a credit card arrives; often we get rid of it by paying just the minimum amount. But do we know the exorbitant rate which the issuer bank is charging on the balance unpaid amount.

Probably if you know this, you will never make the mistake of making minimum amount payment on your credit card bill and would rather settle it full by any means. Even the modern day students are not immune to this menace; as they at a very tender age are getting trapped into the infamous world of credit cards.

With increased use of credit cards, more and more people are falling into deep debt crisis, leading to a lot of stress in their respective lives. After having read the above, please do not throw your credit card in the nearest dustbin. This is not what I intend to achieve through this article.

So together let us understand the utility of a credit card and the precautions, which one needs to take on its use. One thing goes without saying that credit cards provide us a more convenient way than to carry huge cash in our purse. Secondly, it offers free use of funds provided you always pay your balance in full and on time.

This is the core principle of achieving a healthy credit card utility. Always strive hard to make your due payments in time and in full denominations. The moment you derail from this core principle, the menace of credit card strikes you in many ways.


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