CREDIT CARD: A BANE OR A BOON? (outline)

OUTLINE CREDIT CARD: A BANE OR A BOON?

Introduction         : A credit card is an automatic advanced card. Nowadays, credit cards are widely used sources for convenient credit such as hotel, medical care and others.

Thesis                  : These are some advantages of using credit card such as record keeping on your spending, delaying expenses in buying something and more safety than cash. However, it also have disadvantages of use it in misuse consequences such as unexpected expenses, irresponsible spending and be swindled by dishonest person.

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The advantages of using credit card.

                             1.  Record keeping on your spending

i.        The advantage from using the credit cards is you can record everything that you bought and paid.

a)      A person that starting a new business venture, they will know whether they have paid their debt or not.

2.      some credit cards offer additional rewards and benefits such as discounts.

i.        discounts from particular stores or companies, bonuses such as free airline miles or travel discounts, and special insurances

a)      Enable us to purchase items with lower cost than using cash.

b) The Credit Card Advantages website says that some also provide benefits like free travel insurance, rental car insurance, and protection for theft, damage or loss of items purchased with the card. 

3.      By using the credit cards, it is more safety than cash

i.         It is more safety than carrying a lot of money and it often more convenient if we use credit card.

a)      When you have your card in your wallet, you don't have to carry cash that can be lost or stolen.

b)  if your credit cards is lost or stolen, you can report the missing card to the card company which the company will then stop accepting any charges on your card.

Disadvantages of credit card.

4.      Unexpected expenses

i.         Can raise the issues of budgeting for yourself and family

a)      It can become a loan and will adding monthly interest charges

5.      Irresponsible spending

i.       Credit card can be viewed as a license to spend up to maximum credit limits

a)      Often encourage user to spend beyond their ability to repay

6.      Been swindled by dishonest person

i.       Our card is used fraudulently which mean other person have stole and use it without our knowledge

a)      Give a credit card number to salespeople or other agencies that require us to give pin number and told us that we have won something

Conclusion           : The advantages of having a credit card are convenience and safety if we   use it carefully but nevertheless if we use it in misuse condition at budgeting and managing our finance, it can leave us with a lot of debt that’s very difficult to pay back. Credit card gives advantages but in spite of that it also gives us disadvantages.