Overspending
Although credit cards give you access to sufficient credit for a long period, you must exercise caution when using the funds. A significant debt trap could develop in the future as a result of excessive spending on pointless things.
High Rate of Interest
The bank will impose interest if you don't pay your credit card bill in a timely manner. These cards often have high interest rates, with an average monthly rate of 3%. The annual rate increases to 36% when the monthly rates are added up.
Deception
There is a chance that someone will use your credit card fraudulently. Even the information from your credit card might be stolen by thieves or fraudsters, who then use it to make unauthorised purchases.
Hidden Costs
Credit cards may at first glance seem simple and uncomplicated, but often contain a number of hidden fees that significantly raise the cost.
Minimum Due
Customers overspend because they believe their bill will be little, which results in interest being added to their outstanding balance, which can quickly grow to a significant and unmanageable amount.