Pros and Cons of Using Credit Cards

A new record in card payments: Is paying by credit card good or bad?

According to data released by the Interbank Card Center (BKM) for March 2024, a record was broken in card payments. The total number of payments made with credit cards, debit cards, and prepaid cards in March saw a 25 percent increase compared to the same period last year, reaching 1.45 billion transactions.

But the question remains, is paying by credit card a good or bad practice? Economist Murat Ferman weighed in on this issue, stating that using a credit card can create the impression of not actually spending money, unlike cash payments which trigger a “pain index” in consumer psychology. Ferman emphasized the importance of maintaining budget discipline when using credit cards and adhering to consumer protection regulations.

The growth rates in different types of card payments were also highlighted in the report, showing a 27 percent increase in credit card transactions, 15 percent in debit card transactions, and a significant 59 percent increase in prepaid card transactions. Experts caution that while the convenience of card payments is undeniable, it is crucial to monitor and control spending to avoid accumulating unnecessary debts.

In conclusion, Ferman stressed the importance of using credit cards responsibly, staying within budget limits, and approaching transactions with a disciplined and planned mindset. Consumer cards are protected by legal regulations, but ultimately, it is the consumer’s responsibility to manage their debts wisely. As the trend of card payments continues to rise, it is essential for individuals to adopt a cautious and thoughtful approach towards their financial transactions.

 

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