In other words, the overdraft limit of credit card can increase the limit of our "psychological account" and make us mistakenly think that our disposable cash has increased.
For example, our cash account has 10000 yuan. We think we have 10000 yuan. At this time, we applied for a credit card, and the overdraft limit of the credit card is: 5000 yuan. At this time, we often think that our disposable cash is: 10000+5000 = 15000 yuan. And ignore the reality that the amount of credit card overdraft should be paid back.
In order to continue to "cheat" our minds, credit cards often have installment payment business. It can make us forget that the overdraft limit is to be repaid, and mistakenly think that we only need to repay a little. In fact, the goods that can be paid in installments have already received interest in advance.
In order to attract more people to apply for credit cards, credit cards also provide two functions to lure or force us to apply for credit cards.
Feature 1: Interest-free period.
Credit cards usually offer an interest-free period without paying interest. Let's mistakenly think that we can delay payment to earn interest on the cash left in our account.
In fact, the cost of this part of the interest-free period has already entered the price.
Feature 2: It is more convenient to use credit cards for some goods and services.
For example, if we book a hotel and rent a car, it will be very troublesome if we don't pay by credit card. You even need to pay an extra deposit in advance.
To sum up, credit cards mainly "cheat" and "force" us to spend, which can effectively increase extra consumption. If you are not careful, you will overspend and pay a high penalty interest.
Similar to credit cards, there are also common businesses such as flowers and white bars in China. Its characteristics are basically similar.
Young people are immature because of lack of social experience. Coupled with the influence of unhealthy consumerism, "psychological accounts" are often inflated by handling credit cards, flowers and IOUs. Therefore, Moonlight, burdened with debt and interest, has become a "debt slave" of banks, Alipay or JD.COM.
So how to change this problem?
First of all, try not to open credit cards, flowers or IOUs. If you want to open one, try to open only one, such as a credit card.
Secondly, don't open the above credit cards during the interest-free period. The gain is outweighed by the loss.
Finally, always be alert to your psychology of excessive consumption. Spend as much as you earn and save in advance. Form a good habit of saving and increasing investment value.