Laminated sharks: The Dangers of Credit Cards

Credit cards are often called "laminated sharks" because they can be a dangerous financial tool if used irresponsibly.

Like sharks, credit cards can be predatory, luring people in with promises of easy access to money, but then sinking their teeth in with high interest rates and fees.

One of the biggest dangers of credit cards is that they can make it easy to overspend.

When you use a credit card, you are not spending real money, so it can be easy to lose track of how much you are spending.

This can lead to debt problems if you are not careful.

Another danger of credit cards is that they can have high-interest rates.

If you do not pay off your credit card balance in full each month, you will be charged interest on the remaining balance.

This interest can add up quickly, especially if you have a high balance.

Finally, credit cards can also have high fees.

There are annual fees, late fees, and foreign transaction fees, just to name a few.

These fees can add up and make it more difficult to pay off your debt.

If you are considering using a credit card, it is important to be aware of the dangers.

Be sure to understand the interest rates and fees associated with the card before you use it, and only use it for purchases that you can afford to pay off in full each month.

Here are some tips to avoid becoming a victim of the "laminated shark":

• Make a budget and stick to it. This will help you track your spending and avoid overspending.
• Set a spending limit for your credit card. This will help you stay within your budget and avoid debt problems.
• Pay your credit card bill in full each month to avoid interest charges.
• If you cannot pay your credit card bill in full, make at least the minimum payment to avoid late fees.
• Be aware of the fees associated with your credit card, such as annual fees, late fees, and foreign transaction fees.
• If you are struggling to pay off your credit card debt, seek help from a credit counsellor.

By following these tips, you can avoid the dangers of credit cards and use them responsibly.