The bdo credit card change the way we make our purchases – for better or for worse. Some people actually earn from using their credit cards, while others are hopelessly pinned by credit card debt. But if you’re going to compare credit cards from personal loans, credit cards are on a bad scale. People might disagree with this viewpoint, but it’s based from numerous studies conducted by financial experts around the world.

 

Do you want to know the reasons why credit cards are worse than personal loans? Check these out:

 

Complacency

Once you’re approved for a credit card, the usual feeling of complacency will wash over you. It’s as if you’re directed by the urge to buy one thing after another. After all, you’re backed up by the credit card, right? This complacency led to the downfall of many borrowers. If you’re going to research about the growing credit card debt problem in the world, you’ll be astonished with the results. Despite the tips and lessons, people keep on maxing out their credit cards. If you paid out a personal loan, the problem is over. But if you maxed out a credit card, then your problem has just begun.

 

Faster Cumulative Debts

Let’s say you’re in the unfortunate spot of a maxed out credit card. Even if you dedicate yourself towards repaying it, the debt will accumulate. Credit card companies are notorious for penalty fees and they’ll keep on draining you until you have nothing left in your account. Personal loans have it better. They have penalties but they’re more manageable.

 

Stressful in the Long Run

An unpaid personal loan can be stressful, but a withering credit card is worse. Creditors will call you day in and day out until you’re ready to negotiate or pay up. Many people who suffered from credit card debts succumb to the pressure and they end up having numerous health problems. So, if you’re planning to get a credit card, you probably need to think twice.

 

Credit cards can still be used to your advantage, though. Before applying for a credit card, make sure that you’re ready for it. Treat the card as an emergency solution – the same way for a personal loan. Whenever the going gets rough, your credit card can save you. Don’t max it out!