Paying the minimum payment on a credit card versus paying extra to get the credit card paid off early.

Paying the Minimum Payment on a Credit Card Versus Paying Extra to Get the Credit Paid off Earlier
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Paying the Minimum Payment on a Credit Card Versus Paying Extra to Get the Credit Paid off Earlier
Basically, credit cards are cards that allow one to acquire items on credit then send money to the bank or credit card issuing company later but on certain agreed terms. For some, credit cards are a wonderful tool as they allow them to sort out emergencies when they are broke and organize for finances afterward. For others, the cards are a dangerous invention because of their overall costs and the spending habits they can instill in people. I belong to the second category of people as I will illustrate in this paper.
First of all, credit is important at several points in life. It helps us get over emergencies and difficult financial barriers and gives us a relatively stable peace of mind as we source for funds to repay the creditors. A good example of where credit or credit cards might prove useful is a case where an individual or their close relative is taken ill, and money is needed before the doctors can perform any life-saving procedure on them. In such an instance, if one cannot raise the cash immediately, it is a good idea to make the payment using a credit card then clear the credit balance as soon as possible to avoid attracting too much compound interests. In that respect, I believe that credit cards are necessary.

However, at times the convenience of knowing that one could always get whatever they want if the price falls within the credit card limit could be quite tempting.

Take an instance where one is out drinking, and he or she runs out of cash yet he or she does not feel like leaving the bar or club. No matter how responsible a person is, the temptation to buy a few more glasses of whiskey and swipe their credit card always arises (Nedeva, 2011). Therefore, if one is not disciplined enough, they could end up spending much more than necessary.
Moreover, because of the compound interest, they would be purchasing items more expensively than they would with cash. In essence, whatever credit balance a person carries over to the next month attracts a fixed interest rate for as long as it takes the individual to make the full payment (Nedeva, 2011). For instance, as shown in the attached worksheet, if I had a credit balance of $5,000, paying back using the minimum monthly payment plan would take me about 2.63 years and cost me approximately $1,312 more than the actual store value of the items I got. However, doubling the monthly payments would help me clear the loan faster and help me save at least $320. Even though I am always aware of this while making my payments, things like heavy short-term responsibilities such as the need to pay my bills or irresponsible behavior like spending too much on luxuries and fun often derail me. Nonetheless, so far, I have always managed to clear my credit balances within reasonable timelines. Nonetheless, if I could get the discipline to pay them off in full all at once or within shorter durations, then, I would feel proud of myself. In fact, it would make me think that I am ready to take on more responsibilities in the family and my life in general.
In conclusion, credit cards are neither too bad nor too good; it all depends on how one sees them. As explained in the paper, some situations are greatly enhanced by the convenience of a credit card. In the same light, there are those that are significantly complicated by the existence of this card. Therefore, to make the most out of the card, it is upon an individual to watch their spending and become committed enough to pay their credit balances as fast as possible. Overall, I do not think that credit cards are a wise way to pay for things.
References
Nedeva, M. (2011, June 27). Why using credit cards is a really bad idea. Retrieved from
https://www.themoneyprinciple.co.uk/why-using-credit-cards-is-a-really-bad-idea/