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  • November 23, 2020
  • Leo

When you shop for something, and there might be a time when you are with no money and abruptly think of paying through your credit card. Credit card, helped you a lot to maintain your status of buying in a shop, but that help you got as of only for a short period.

The help you received with a credit card will bring you a bill in the next couple of days. The bill will contain all the specific expenses you had made, and you have to pay. If you do not do this and tend to shop more and more, this will put you into the web of debts.

The debt you will be facing can come with extra charges; you will be charged via fines and late payment penalties. With the credit card, you are allowed to borrow month after month and have a limit under some amount, but it will remain a debt until you repay them off.

Through this article, I shall share what I feel about possessing a credit card, compare it with direct lenders, and assert the relevance and benefits from them.

About credit card debt

Credit cards were first introduced in the decade of 1950s, and from that time, it has been gaining popularity in the financial world. The banks provide it to their customers to come up with extra protection of their expenses offered by credit cards and thus simplify their shopping life.

However, due to lack, of potential of repaying the borrowed money with a credit card, a person gets stuck in debt, and this incapability brings him down to the stage in which he becomes helpless, and rarely finds any substitution to get rid of it.

If the consumer reached the highest point of its limit, then he remains with no choice other than repayment of the borrowed money. To cover credit card debts, he can even reach the level of bankruptcy.

In addition to money, he loses his respect in the society that was brought by himself, putting him into the debt trap.

Work of credit card debts

  • First, credit card loans bring insecurity as it is entirely unsecured because it cannot be backed with a single piece of property.
  • It claims no collateral, and the bank does not sell anything from the borrower’s possessions.
  • It deteriorates your credit score and demeans your history if you found failure in repayment.
  • If you do not end up the term with making repayment, then you will actually have a severe problem in your credit history and deny you further help.
  • You have to pay the entire balance by the end of every limited-term; otherwise, you will be charged with massive interest or penalties for deliberate outstanding.
  • If you pay timely the full amount, you will be adjusted with benefits that were with you before making payments with credit cards.

Pros of credit card debt

The majority of card users believe that credit cards improve credit score, but in reality, they do not do this at all.

Only owing something does not mean you will achieve from it, when you use it efficiently and comprehensively you will get the desired results.

Similarly, utilizing credit cards can improve your credit scores. Spending there where you can afford to pay, making timely payments and keeping your balance to zero must help get your credit score improved.

Financial aid

You can easily get guaranteed loans from direct lenders in the UK and boost up your run towards your shopping goal. Direct lenders can provide help by offering easy loans with easy installments you can use to repay.

The loans offered by direct lenders are the loans on benefits, and obviously, you would choose the type of help that brings benefits to you. 


The credit card does allow one to spend indefinitely but remains a debt and can take a huge form unless you pay it off within time. The debt can get ahead of you.

I urge you not to use credit cards and charge more amount than you can afford to repay at the end of each term of the loan. Instead, approaching direct lenders can be comparatively useful and pocket friendly. Like credit cards, direct lenders help instantly, but unlike them, their repayment technique is flexible.

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