Easy to Swipe: How Credit Cards Can Cause You to Build Debt
While having a credit card can provide you with great convenience, there can also be some negative aspects of having credit cards readily disposable for your everyday needs. Having credit cards in a wallet makes it easier for you to spend large amounts of money in a short period of time. Expert psychologists frequently discuss the tendency that individuals have for spending money when they have access to credit cards. Even seeing a credit card logo can set off a trigger in a person's mind that encourages him or her to spend more money.
Over time, having access to multiple credit cards can easily cause a person to build up debt. People have a tendency to break a budget and spend more money on gasoline, groceries, clothing and other basic necessities with credit cards. One major reason is due to the fact that credit cards make it easy for people to spend money without giving it a second thought. With one quick swipe, a person can make a purchase the adds up to thousands of dollars. According to Psychology Today, individuals are less likely to spend great sums of money when they use actual cash. The physical handling of cash gives people more time to conceptualize about the money that they are spending on objects. This makes them more likely to reconsider making a purchase that could have a significant impact on a budget.
Also, using a credit card allows people to spend without remembering how much they have spent on an item. With cash, there is always a physical reminder of the exact amount of cash that a person has spent on an item. It is also easier for people to stay within a budget by limiting the amount of cash that they have with them at all times.
Overall, credit cards can cause individuals to build debt in a short period of time. A credit card can cause a person to spend significant sums of cash that add up to be large amounts of debt.