Picture this scenario – you’re shopping for your summer closet at a high-end apparel showroom. You're standing at the billing counter when you realize that you went a little overboard and are now running out of cash. What would your first move be? Would you leave the cart behind or discard some of the clothes? Maybe, but what if you're carrying a credit card? Ah! Problem solved!

Clay Banks/Unsplash | A credit card is an easy source of money when you’re low on cash, but it can easily run you into a lot of trouble

A credit card can be an easy source of money. It can help you in the time of need without you having to carry around too much cash. But you can't deny that it's a double-edged sword, a root cause for many problems. It’s a snake in your pocket which can sometimes lead to stiff situations. After all, you’ve got to pay the bill someday, right? And what if you don’t have any cash in hand at that time?

This post allows us to give you a peek into the downfalls of using credit cards way too aggressively. We don't mean to scare you, but you should probably be a little cautious with those innocent-looking things.

#1 High-interest rates

A credit card comes with very high-interest rates as compared to current market situations. In fact, some cards charge more than 25% interest on unpaid balances. For instance, if your balance isn't zeroed out at the end of each month, the interest rates are accumulated with the unpaid balances, and that ultimately reduces your available cash balance. While it may seem trivial, you should know that this will make a huge impact on your credit score, and that brings us to our next crucial point.

Pepi Stojanovski/Unsplash | If your balance isn't zeroed out at the end of each month, the interest rates are accumulated with the unpaid balances

#2 Poor credit score

A low credit score puts a halt on a lot of your dreams. If your dues aren’t paid on time, it ends up hampering your credit score, which means that your eligibility for getting a loan is very low or even impossible in some scenarios. It could shatter your goal of buying a new house, a new car, or even something as regular as a smartphone. Can’t get any worse than that, right?

#3 Impulsive purchases

When you have plastic money in your hands, it often leads to unnecessary purchases and overspending. It’s easy to get tempted by things you don't need if you don't actually see the money go out of your pocket (it’s true). All you have to do is swipe your card, isn't it? But it’s only after you’ve spent your money that you realize how deep you have succumbed to this black hole. Therefore, it's important to know when to stop.

Tom Official/Unsplash | When you have plastic money in your hands, it often leads to unnecessary purchases and overspending

Wrapping up

Like we said, it’s a coin with two sides – one where you have the convenience of never having to carry cash, and the other where you have to pay a hefty bill at the end of the month. It’s a simple pick if you ask us, but, to every man his own choice!