Many people use credit cards for making purchase. Credit Cards are available under various terms and conditions and can be beneficial when cash is not available. However there are some disadvantages of credit cards. Read these few points carefully to know about the disadvantages of credit cards and how to use them effectively.

Drawbacks of credit cards

Overuse of card and increase of debt
The easy use of credit cards can lead to overuse and result in a minimum payment that isn’t affordable and a balance that can take years to pay off.

Keep a track of receipts
If you are using a card then you have to keep all the receipts so that you can match them from your statement. It is important that you keep a track of them as in this way you can see whether the company has charged the correct amount.

Introductory rates
Some credit cards offer a low introductory rate or promotional period where no payment is due. Once the time expires however the interest rate can change. Be sure you to verify the amount of interest you will be charged once this introductory period ends.

Interest
The interest charged is one of the major disadvantages to credit cards. The interest will compile on top of the balance leaving you with a higher amount to pay then if you were paying cash for the items.

It is important that you read and understand the terms and conditions of your credit card. If you have any confusion better to ask the person you are getting this financial help from. It is a good way to have a life free of unnecessary debts.