Credit cards are a necessity or a luxury

Recently, I tried to mend my shopaholic ways by trying out the ‘100 days shopping ban’ challenge. This meant that I would not shop for anything except for the basic necessities for a 100 days, starting from a certain date. One weekend, I decided that the best thing to do was to hit a mall but carry no cash in order to refrain from spending.

As I was window shopping, my eyes dilated when I saw the ‘perfect pair of shoes’ on the display. This made way for a short-term memory loss and I completely forgot about the challenge. My frugal side tried to stop me from splurging on the pair as it would only mean adding to my self-proclaimed museum of shoes. But my shopaholic side encouraged me to go weak in the knees just this one single time. But I wasn’t carrying any cash. So making a purchase was impossible. Just then, it dawned upon me that I did have the ‘power’ to own the shoes after all. I frantically searched my handbag and got hold of a shiny object which would save the day, and help me pamper myself with some retail therapy. Yes, it was my best shopping pal – my credit card.

Most of us would have at some point in time, used our credit cards to buy stuff which we didn’t really need. Using a credit card always feels good till your eyes pop out at the end of the month when the long bill with an alarming figure reaches you. While some consider credit cards to be an outright extravagance, there are others who think that they are a necessary evil. So, are credit cards a necessity or a luxury?
Credit Cards as a Necessity
If you are traveling to a distant place, carrying your credit card instead of cash will be beneficial for you. If you lose your credit card, you can block it immediately before someone else misuses it. Moreover, a credit card helps you to acquire something or make the payment for it even when you do not have cash in hand. This is important in today’s times when the threat of having your cash stolen looms large.

Expense Tracking

If you pay for your transactions in cash, you may not be maintaining a record of the same. Just imagine how difficult it would be for you to keep a track of all your expenditures at the end of the month or for tax purposes. Imagine running from pillar to post trying to get hold of all the receipts at the end of the year. This is when your credit card statement’s year-end summary will help you track all your records.