The Real Truth About Credit Cards | How to Avoid Debt and Improve Your Credit Score

Many people use Credit card these days mostly young generation, and there are many people got stuck with high debt situation while using Credit Cards. And there is a myth – Credit Card is a scam.
Is this really a scam: Short answer is no – Credit cards are not scams by themselves but depends how do you use? Means the purpose – while misuse can lead to serious financial problems.
Many people have wrong thought on it.
- “It’s free money”
- “Minimum payment is enough”
- “I’ll convert it to EMI later”
These beliefs can trap users in high-interest debt cycles.

Example: You spend ₹10,000 and pay only ₹500 as minimum payment.
The remaining ₹9,500 accrues interest—often at rates of 30–40% annually.
If you continue spending without clearing dues, compounding interest causes debt to snowball.
Using multiple cards increases the risk of overspending and confusion.

First thing is always pay the full amount every month—don’t rely on minimum payments.
Always track your spending, which makes easier to track all your expenses and maintain a balance spending.
Never withdraw cash using Credit Card—Since high interest starts from day one.
Use credit cards only for essentials, not luxury or impulse purchases.
Best Set auto-pay reminders to avoid late fees.
Do not use multiple cards, Limit the number of cards.

Credit cards can be powerful financial tools if you use in proper way.
Smart usage helps you:
- Earn rewards- you can use rewards to book your tickets, free subscriptions etc.
- It helps you to gain your overall credit score.

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