I want Information of this project..........
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study of merits and demerits of plastic money based on experiences of people
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I want Information of this project..........
05-08-2017, 03:55 PM
Plastic money or polymer money, made out of plastic, is a new and easier way to pay for goods and services. Plastic money was introduced in the 1950s and is now an essential form of ready money that reduces the risk of handlings a huge amount of cash. It includes debit cards, smart cards, credit cards etc., variants of plastic money, are used as substitutes for the currency.
Advantages of a credit card
• Credit cards bring easy cash at your disposal, even when your wallet runs out of cash. It comes handy especially when you are in a lot of traveling and carrying cash is a big hassle. They come handy especially as you travel overseas.
• Credit cards provide security and protection compared to cash. There is a lot of risk in carrying a large amount of cash in your wallet. As for credit cards, they will give you money when you need it and if it is lost or if it is stolen you can always save yourself from further losses by locking your card right away.
• How credit cards give you the facility to buy goods and services online that helps in increasing your purchasing power.
• The credit cards of some financial institutions are loaded with facilities like cash that serve as an incentive for you and few offer reward points that can be used in the form of coupons or gifts.
• In situations like job loss or health emergencies credit cards can play a vital role in providing you with that extra money that you are desperately in need of.
• Credit cards bring along easy payment options such as monthly installments that help you to cancel your debit easily without asking you to shell out a lump sum out of pocket that can interfere with your cash needs on hand.
• You can also withhold credit card payments.
• Credit cards also give you an ease to withdraw cash from ATMs. It should be noted that in such a case there is no free credit period and interest begins to accumulate from the first day itself. Interest rates can range from 25 percent to 45 percent annually. A cash withdrawal rate of 2 percent to 3.5 percent is also charged on the amount that is withdrawn.
Disadvantages of a Credit Card
• If you are the one who thinks you should have a credit card, because all your friends have one, then think again, as this can lead to problems. Credit cards have to be owned only by those who can use it with care taking into account the billing cycle, interest rates, etc.
• Due to a credit card you can drive your way to a lot of impulse buying as in the back of your mind you are aware of the fact that you have credit at your disposal even though you do not have cash in your account.
• You can not ignore the fact that scams have been made and can be done with credit cards.
• If you think you need a credit card because you are in need of building your credit limit, then that is not true at all. In order to build your credit limit it is necessary for you to pay your bills on time and can be any invoice not necessarily your credit card bill. Credit card should not be interpreted as a tool that will allow you to build your credit history.
• You really do not need a credit card if you think you need it just to shop online. You can jolly well do it using your debit card. Debit card can do everything a credit card can with the only difference that a debit card can not provide credit when it does not have it. So if you plan to own a credit card only for online purchases, then you may drop the idea.
• If you can not pay your credit card dues on time, then you are charged late fees and interest that increase your debt burden.
• There are times when you can get so deeply trapped in rolling over the balance for several months that it is becomes difficult to break the vicious circle. It's like getting trapped in a credit trap.
• If you own a good number of credit cards, lenders may not have a good opinion about you.
• If you go for the investigations that have been done, credit cards have paved the way to the lot number of consumer bankruptcies.
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