Why do people rely on acquiring loans? Do credit ...

Acquiring debts is similar to a quick fix. They enable people to purchase items they usually do not need because of slick advertising and prmotions. A credit card allows the owner to lose track of his budget because money is not removed from a purse and carefully counted befo making the purchase. So like drugs, people take the easy way. This imaturity gets the susceptible deeper and deeper into debt. 

People rely on acquiring loans for different reasons. Others acquire loan to make both ends meet. Others take out loan due to emergency and unexpected reason. However, there are some who take out loan just to indulge their whims, without thinking the future implications of their inappropriate loaning.

Regarding credit cards, it only destroy someone's life if the individual let's his/her whims and caprices get the upper hand of his/her life. They tend to make wrong decisions, purchase things that they really don't need. And just woke up one day that they are facing huge financial obligations that they perfectly know they cannot handle.

However, not all credit card holders are irresponsible. There are some who uses their cards wisely. They just use it if the moment really needs it.

well yes and no, it all depends on the person http://www.creditcardcentral.blogspot.com

Credit cards are good but Credit card owners cards have to exercise extreme responsibility. It should be noted here that, you must fall into a huge debt if you fail to budget that you will be unable to handle and you ruin your relationship with your bank. It’s very important thing.

Lenders rely on your ability to handle your finances. If you cannot handle a $2,000 credit card, they would not lend hundreds of thousands for a home or tens of thousands for an auto loan. As I have always said, it is all about RISK. Can some allow credit cards to ruin their lives? YES YES YES So many people have acquired so much debt, not counting on the fact that they could lose their jobs someday, lose a loved one and have to pay for a funeral, there are so many hardships that could happen. Never allow your credit card to go over 1/4th (.25) of the credit limit. Always have two credit cards that are used for only small items that can be paid off within one month. Never use them for groceries, bills, car payments, etc. Now, they are even profiling where you shop - Walmart verses Macy's. Revolving credit gives more points on a score because it has no collateral attached. Derogatory payments usually report for seven years whereas bankruptcy and foreclosure are for 10 years. Today 620 is a bad score but two years ago, 540 was a bad score. Never cosign for someone else. The odds are that they cannot make the payments because the lender is requiring you to take the risk and their formulas do not lie. Learn to do a budget and keep a budget for 6 months before requesting a credit card. If you are late or miscalculate a payment, call the creditor and beg for forgiveness on your credit report. Times have changed and they are upset over the loss of compensation so now they are going to be much tougher in reporting. Take classes on personal finance if you ever want to own a home, refinance one or purchase a new home from now on. Always live within your means.

Hi there,

really credits card be the great panic if you are unable to pay all the amount to the bank. What the most important disadvantage about credit cards in shopping that people forget their limits of credit, they don't think while purchasing any thing that will they able to pay all the amount and there it becomes very tough to pay with a huge interest.

Credit cards can be bad, but all depending on the credit card holder and the credit card company.  Sometimes credit card can cause a false sense of unlimited money and if not used properly can cost a lot of money in the long run.  Credit card companies are renowned for their bad practices, including raising interest rates for any number of reasons.

Credit cards are not essential for today's society, but it is hard to go without one.  They are needed for reserving, day to day purchases and building credit.  People need to keep their balances below 35% and pay on time to help build their credit rating, if they don't do that, it isn't worth having one.

Loans along with credit cards can help with credit, but they can also both destroy credit scores.  Credit repair can help when the credit bureaus have reported something wrong.  Remove late payments that aren't yours to help keep your credit reports correct.

Some people use credit cards irresponsibly, that can lead to all kinds of heartache. 

If you are using credit cards to finance a lifestyle that is above your means it will very likely comeback to haunt you.  Ideally, you should never carry over a balance from month to month and have a cash emergency fund.