2023-05-16 10:07:01
“Credit cards may not help you save.” This is confirmed by new research published by the American “Forbes” magazine, which revealed that 45 percent of credit card holders “do not know the costs of their monthly expenses.”
The study found that “the size of expenses and the moral value of purchases are not clear to credit card users, unlike those who pay cash.”.
On the other hand, researchers in the field of psychology at the Massachusetts Institute of Technology revealed that “people tend to spend more when using credit cards, compared to those who pay cash.”.
According to Forbes, “interest rates go up for consumers who are unable to pay their credit card balance on time.”.
The research warned against falling into the trap of points or rewards that they reap from credit card purchases, such as winning free tickets or bookings in luxury hotels..
The researchers explained that “focusing on investing in assets and other sectors is more beneficial than relying on credit card points.”.
In this regard, Mahasin Mursal, a journalist specializing in economic affairs, told Sky News Arabia: “There is a difference between paying in cash and paying with plastic money (cards), because psychology says that paying in cash is painful even for those with wealth, because The person feels that his money is being eroded.”
Economists: A card in your wallet may “destroy” your future
And she added, “On the other hand, when payment is made by credit cards, psychology says that human sensors about the risk of these operations and their impact on the monthly budget or a person’s finances are disrupted.”
She pointed out that the use of credit cards is “a major reason for the accumulation of debts and interest on people, in exchange for things they bought, most of which they do not need.”
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