It’s seems that debt right now or utang is the in thing.

It is readily accessible to everyone who wishes to acquire some funds to use for spending.

One debt instrument in particular is credit card where almost all banks are offering and that all sorts of promo are being offered just to get you to sign up.

But does having a credit card a disadvantage or an advantage on your journey to financial freedom?

Credit card can be viewed as both and will solely depend on the user.

It can be a blessing, saving a lot of time and money. Not to mention leverage when used in a positive light.

It can also serve as a curse putting you deep in debt and will greatly affect the relationships you have with your family and with others as well, if you don’t know how to responsibly handle the use of a credit card.

Some people have one credit card while others have multiple credit cards inside their wallets.

Let’s discuss the advantages of having a credit card then the disadvantage after so that you can decide whether you are ready for the challenge.


1. Convenience

Having a credit card in hand saves you time and money because you can opt not to bring a large amount of cash with you and use your credit card to pay for your purchases especially big ticket purchases that requires you to bring a sizeable amount of money.

You can also use this for emergencies like using this as a deposit when you get admitted in the hospitals. As well as purchasing online tickets.

2. Leverage

Having a credit card helps you maximize the existing capital you have if you’re planning to put up certain businesses like laundry business by opting to pay for it in instalments at zero interest and letting your business pay for the monthly payments.

3. Perks and bonuses

Most credit card companies give you incentives and bonuses for using their credit card for your purchases. You can have free meals or raffle promos.

4. Basis for Credit record

Having a credit card helps you when you need to apply for bank loans and other types of debt instrument to either fund home purchase or a automobile purchase in the future.


1. High-Interest rate

If you miss a monthly payment or decide to pay the minimum amount then you will be charged around 3.5% interest rate/month on top of your purchase and if you again miss to pay the succeeding month then you will be charged an addition 3.5% interest rate on top of the balance with the previous penalty. If left unchecked then your small debt might balloon to a debilitating debt just because of the compounding interest rates.

2. Annual fees

Credit card companies offer annual fees that you have to pay for even if you don’t decide to use your credit card for that year. If you are absent minded and forget to check and pay it then with that alone could put you in debt.

3. Over budget

Because it’s easy to purchase stuff using your credit card, if you don’t have self control, then you can easily be tempted to purchase things that you don’t necessarily need on impulse especially when there is sale. When this happens then your monthly budget will be affected and you need to sacrifice on other more valuable expenses just to pay for the credit card bill.

4. Risk of Fraud

Although having a credit card is very convenient because we don’t need to bring actual cash with us. Because technology is involved then there is always a risk that other people might use our credit card details to make fraudulent purchases. We should always be wary and always check our credit card bill because this really happens to some people.

In conclusion,

A credit card is only a tool that when put to good use can be beneficial to us. If we just use it wisely then we can maximize its uses to our advantage. Make sure to use credit card responsibly and always assess yourself if you are up to the challenge.

If you think you are not ready then might as well save for what you want and pay for it in cash.
Being deep in debt is very debilitating especially if it is the kind of debt that does not put money in our pockets.

Make sure to have financial freedom always as your constant goal in mind.

Good luck and slowly but surely you will achieve it.

Always aim to be debt free!


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