Which of the following are disadvantages of using credit?

J

James white

Member
I’m currently learning more about personal finance and came across a question that got me thinking: what are the actual disadvantages of using credit?

We always hear about the perks rewards, cash back, building your credit score but I feel like the downsides don’t get talked about as much unless someone is already in trouble.

In your experience, what would you say are the biggest risks or drawbacks to using credit cards regularly? Things like overspending, interest rates, or getting too dependent on credit come to mind, but I’d love to hear what others think.

Also curious if anyone’s ever been burned by credit use and had to change their habits.
 
I think the sneakiest disadvantage is how easy it is to feel like you’re spending future money. You swipe a card, don’t feel the money leaving and suddenly that $20 dinner becomes $200 over the week. It’s not just the interest......it's the delay between spending and consequence that’s dangerous.
 
Totally agree with u. The perks are great if you’re disciplined, but the moment you’re not? That’s when credit becomes a trap. I was $6k in debt before i even realized how bad it got. It was mostly small purchases like coffee runs and subscriptions i forgot about.
 
My issue was psychological. I associated credit cards with emergency funds when in reality, it was just bad planning. I’d swipe during rough months thinking i’ll catch up next month. Spoiler: i didn’t. Now i save in advance and use debit for 90% of things.
 
I once thought I was smart by getting 0% intro cards and balance transferring debt. It worked...until i forgot to pay off in time. Missed the promo deadline, got slapped with backdated interest. A very expensive lesson in reading the fine print.
 
I don't think credit cards are evil but they’re a tool that requires maturity. Imagine giving 18-year-olds access to hundreds or thousands of dollars before they even know how taxes work. Recipe for disaster.
 
Being overly reliant on credit ruined my perception of affordability. I kept thinking if i can pay the minimum i can afford it. That logic is what led to 10 years of revolving debt. Never again.
 
Honestly rewards are overrated unless you’re really optimizing. Most people spend more chasing points than they’d ever get back. I calculated once........ispent $1,800 extra in a year trying to hit a $150 cash back bonus.
 
Had a roommate who used his credit card to pay rent. Every month. Said he’d pay it off later. Guess who had debt collectors calling him 9 months later? Pro tip is if you can’t pay rent without a credit card, it’s time to reassess finances.
 
This thread is giving me flashbacks....i got my first card in college, maxed it out buying concert tickets and food. Took me years to crawl out. Wish I’d known that credit isn’t extra money....it’s borrowed money.
 
The problem isn’t credit cards. It’s the lack of education around them. We throw people into the adult world with zero prep and then act surprised when they drown in debt. Schools should teach interest compounding more than parallelograms.
 
Sometimes the credit system punishes you for doing the right thing. Like closing a paid-off card and losing credit history points. Or keeping a card open and getting hit with an annual fee. Damned if you do, damned if you don’t.
 
Getting denied a loan because of high credit utilization is the worst. You think you're using your card responsibly because you always pay on time but boom your score drops 50 points because you hit 60% utilization one month
 
My partner got addicted to the dopamine of buying stuff with credit. New tech, clothes, even random Amazon crap. We’re now in couples therapy AND paying off $14k of debt. Credit didn’t cause the issue, but it enabled it fast.
 
Credit cards make budgeting harder, at least for me. I used to use cash and envelopes and had a tight grip on my expenses. Once i switched to credit, it became easier to forget how much i’d already spent by mid-month.
 
Bro have you seen how some banks calculate interest? Daily compounding on balances you didn’t even spend that day. You pay off half and somehow the interest grows?! Feels like legal theft sometimes.
 
Honestly i’ve seen relationships break over credit issues. One person hides spending, racks up debt, and it all explodes later. Transparency is key but credit cards make secret spending way too easy.
 
Not to mention identity theft. Got my card info stolen and they racked up charges in Spain while i was at work in Ohio. Took weeks to resolve. Now I use virtual card numbers religiously.
 
Y’all remember store cards?“Save 15% today! Next thing you know you’ve got a dozen cards at 29% APR. I worked at a retail chain those cards were designed to trap impulse shoppers.
 
Tbh i think the stigma around debt makes it worse. People suffer in silence trying to maintain appearances while their credit card interest eats them alive. Normalize talking about it earlier.
 
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