Why applying for a credit card when you run out of money is a bad idea

The money will be even less

When you pay with a credit card, you are spending other people's money. They will have to be returned, in the worst case with interest.

If you often find yourself in a situation where you run out of funds, then your income does not coincide with expenses. The credit card creates the illusion of increasing income, and it does not improve your financial discipline. Moreover, reckless use of a loan can be dangerous.

Let's say you get 25 thousand rubles a month and spend them entirely. This is only enough for what is needed. You spent an extra $ 5k on your credit card this month. This means that next month you will be able to spend only 20 thousand, the rest will go to pay off the debt. But this amount will end even faster. And at the end of the month, you will face a longer period of lack of money. This usually leads to new debt.

Often, events develop according to this scenario: a person spends money from a credit card, and then cannot return it in full. As a result, the interest-free period ends and interest begins to accrue on the debt. The borrower pays the necessary amount on a monthly basis so that the bank does not start applying additional sanctions to him, but he is no longer able to repay the loan due to the increased financial burden.

As a result, the debt does not decrease, and the owner of the credit card lives much worse, since he gives part of his small earnings to the bank.

Not everything can be paid with a credit card

Technically, you can use your credit card money as you please. But a big mistake would be to withdraw cash from her or transfer funds to a debit card, for example, for renting an apartment.

As a rule, banks charge a commission for such operations. For example, for Sberbank this is 3% of the amount, but not less than 390 rubles. For a person who did not have enough funds for what is needed, this is a lot of money. On them you can eat at the very least for several days, if you cook at home from inexpensive products.

In addition, there is no interest-free period for such cases - interest will begin to accrue the very next day. Which, again, will lead to the fact that the money will become less due to the increase in the debt burden.

You shouldn't pay for everyday needs with a credit card

There are nuances here. For example, if you pay with a credit card, while interest is accrued on the balance on the debit card, and at the end of the month you pay off the debt, then this is a working scheme for albeit insignificant, but increasing income.

But we are talking about a completely different situation, when you simply do not have enough money. If you buy everyday goods with a credit card, the balance between your own spending and your bank money gradually shifts. After a while, you can easily find that you eat and travel to work on credit.

It is very difficult to emerge from this whirlpool without fundamental changes, since a significant part of your earnings will be spent on paying off debt. You can hardly notice the changes: spend about the same amount. Only before did you manage your salary at your own discretion. And now a significant part of it must be taken to the bank, otherwise sanctions will follow, and the collector will knock on the door.

When you can still use a credit card

The life hacker wrote in detail how to use a credit card to your advantage. In short:

You need to be confident that you can pay off your debts in an interest-free period.
To repay the loan, conditionally extra money should go - those that you would postpone or spend on entertainment. If for this you have to eat less often or deny yourself other vital things, the credit card is not for you - the risk is too great that you will not be able to cope.
A credit card is a force majeure tool, not for everyday use.
Any loans should be taken only by those who have a good understanding of the structure of their income and expenses, are able to plan a budget and draw up a loan repayment schedule faster than a bank specialist. Financial illiteracy is at the root of most loan problems.