What are the disadvantages of using credit cards opposed to using cash?

Answer 1

There are both advantages and disadvantages.

Some of the disadvantages are:

1. People have a tendency to overspend on a credit card.

2. Credit cards can be lost or stolen.

3. Interest rates are sky high.

4. Poor payment reduces you credit scores.

5. Some people go bankrupt because of credit cards.

6. Others due to the high interest never get from under.

7. Your identity may be stolen.

8. Credit cards may be stolen.

Answer 2

Interest rates and fees.

Those are the biggest reasons I can think of. Lets say you have a 15% rate on the cards and carry a $2000 balance. You are paying more than $300 a year. There are some people who carry a larger balance and have a larger interest rate. Also, credit card companies do love their fees. That will make the amount of money lost per year greater.

Another reason for some people is that cash is more anonomous. Credit card transactions are traceable back to you. This may not be important to you however.

Answer 3

There are no disadvantages if you control how often you use them and pay them in full at the end of each month. I don't believe in using cash except for purchases under $20.00. If you don't believe you are good at handling money, the interest on credit cards are unbelievable. I would highly recommend carrying a debit card instead of a lot of cash. It is just not safe to open your wallet and have the stranger behind you see it full of money.

Answer 4

As u know the main use of credit card is wen u dont hav cash in handor u dont hav 2 carry cash in hand, so credit cards r helpful. u jus can tak that card & buy anything. but at the end of the month u will be given a long list of payments and then u realiz that u hav spent more and later they charge interests wen u couldnt pay by the due date. So this wat happens if people use credit cards and i would like to say that its better to pay cash than using credit cards.

Answer 5

Cash is always better because you can't incur interest charges and/or late fees like you can with credit cards. You have peace of mind - whatever you bought it paid for and behind you - not a bill that's gonna show up in your mailbox some day!

Answer 6

interest charges... and if you buy stuff online (mainly credit cards to pay) you run into the chance of people hacking your computer and stealing that information. And if you wanna hide something you bought from your spouse , it's hard because it would be on your credit card bill.

Answer 7

Finance charges.