Plastic Money; Constructive and Destructive. Review on Advantages of Credit Cards

Imagine going anywhere and no botheration of payments! A Credit Card. You go anywhere and you do not bother carrying cash. Not used on a wide scale in India but the US and the UK completely work on the plastic money. In fact its worth noting the fact that around a trillion dollar transaction is made by cards in the US.(No wonder the economy is doing great). The fact that it’s not doing immensely good in India even after this concept being in the country since almost a decade now, its catching pace because the methods of business are now diverting and a few of them perhaps matching the western world.

In the modern competitive world, it is of utmost importance to keep pace with the developed nations which would not only improve the standard of living but would also help invent new ways to doing things better. A credit card in India is not used at many places and it would take a long time before it could be used in the grocery markets on a regular basis as compared to the western world where the entire grocery shopping too is done by cards – rest aside all major listed shopping items. If we also keep an eye on the standard of living of the people in India and at their interests, we could come across some hard facts.

Lets just take the following case: I was marketing a credit card and being too hot outside, I just entered one of the not-known banks(a branch) located in one of the small gullys(small lane). It was cool inside and as I thought not doing anything entering into a bank, I would only find the guard coming to me and throwing me out. I would rather market the card and have a chat to a few people. To my surprise, I managed to chat with a gentleman who(I believe) did not possess much knowledge about how the bank was running and who drew a salary of Rs.1, 800/- per month but also the most anxious person to have the first deal in the bank. He also managed to observe the word ‘global’ associated with the card and the name of the company and requested an explanation about the same. He finally wanted to go for a ‘global card.’ Its just amazing at times when we find that the system or the technology just would not work because of the people around. Although it can change the economy structure absolutely, but do you think its really good to be influenced by the entire system?

Its plastic money. You just know when you use it and being easy to carry and use, you do not think twice before spending. Wow! Wonderful again to find that you have to make the payment after almost 20 days after the arrival of the same and if you spend in the beginning of the month, you end up making payments after almost 50 days. Great:isn’t it? I would say it would rather be cruel to take money through credit cards from the person who does not even earn the amount, which he is now spending. If he goes bankrupt or does not get a monthly salary, imagine the level of mental disorder the person could go through especially when he has the entire family to handle too. Its difficult to change a habit and using a card would then be a habit for the one who starts using it regularly. Again in a habit you always raise the level of wrong consumption, which is the same when you start using a card. Using a credit card could be as dangerous as probably commencing to smoke or falling for one single female who does not even want to know you. As compared to a credit card, the better option would be to go for a Debit Card, where you just need to take care of the fact that you have enough amount in your bank account to use it. Whenever you use it you are assured that the payment has already been made once you get your card swiped and that you do not have any burdens at the end of the month.

A debit card could be perfect also considering the fact that you end up not carrying large amount of cash. If there is not enough cash in your bank account the card would not be accepted by the machine. It’s the perfect system to bring about a change in the payment mode, making it easier and calculative too. I guess, with the rapid use of debit cards, it would be essential for all the stores and businesses in all the industries to start having the swiping machines, which is one of the biggest problems in the development of the said industry.