One of the biggest disadvantages of using credit cards, is the usually high interest rates they (the issuer) charge, and if you're unable to clear the entire balance every month, the amount of interest you pay over time to clear your debt, is astronomical! There are usually annual or 6 monthly bank fees on top of the interest charges. Even if you havent used the credit card, you'll still get charged the annual (or 1/2 annual) fee.
Also they're quite addictive, and give the user a false sense of security. It's too easy to just pass the credit card over the counter when purchasing on a whim - and much more difficult to be strong and only use the facility for emergencies.
It's far too easy to over-extend yourself and find yourself in trouble when it comes to pay back.
Banks and/or other Issuers, nowadays make it too easy for the user/borrower to increase their credit limit to way beyond their means. Often, the Bank will increase the customers limit automatically, and although there is an opt-out customers generally do not take that option, and instead, think yay, more credit - now I can spend up large (forgetting the debt they're getting in to at the same time)
Also they're quite addictive, and give the user a false sense of security. It's too easy to just pass the credit card over the counter when purchasing on a whim - and much more difficult to be strong and only use the facility for emergencies.
It's far too easy to over-extend yourself and find yourself in trouble when it comes to pay back.
Banks and/or other Issuers, nowadays make it too easy for the user/borrower to increase their credit limit to way beyond their means. Often, the Bank will increase the customers limit automatically, and although there is an opt-out customers generally do not take that option, and instead, think yay, more credit - now I can spend up large (forgetting the debt they're getting in to at the same time)
