Nowadays, people’s consumption patterns have undergone great changes. Many young people use credit cards to make purchases in advance. Credit cards play an active role in promoting residents’ consumption and facilitating residents’ lives. However, when using credit cards, In the process, problems such as overdue payment and cash out have become increasingly prominent.
The Consumer Insurance Bureau of the China Banking and Insurance Regulatory Commission issued a risk warning on June 29. The China Banking and Insurance Regulatory Commission stated that consumers should correctly understand the functions of credit cards and use credit cards rationally. Credit card is an overdraft tool provided by banks to cardholders. Its main function is to meet consumers' daily, high-frequency, small-amount consumption needs and to facilitate consumers' lives.
However, in the process of using credit cards, some consumers rely too much on credit card overdrafts for consumption, so that the consumption amount exceeds their repayment ability, resulting in being burdened with large credit card loans, and even having a card Friends have fallen into the situation of "using their cards to support their cards". For this type of cardholders, credit cards not only fail to alleviate the financial pressure of the cardholders, but also lead to financial constraints and doubled repayment pressure.
In addition, banks have restrictions on the use of credit cards. Credit card funds cannot be used to purchase real estate, investment and financial management, etc. However, in real life, there are still some cardholders who will use their credit cards to cash out. The borrowed funds were illegally used in non-consumption fields such as real estate, funds, securities, and financial management. Illegal use of credit card borrowed funds in non-consumption areas will amplify financial leverage, easily lead to unsustainable personal or family finances of cardholders, and will also bear corresponding consequences.
Cashing out is also expressly prohibited by banks. Cashing out is an act that disrupts financial order. If a cardholder uses a credit card to cash out, once the bank discovers that the cardholder has used the card illegally, the bank may Some measures will be taken, such as reducing the cardholder's credit card limit, freezing the credit card, etc., and illegal use of credit cards will also affect personal credit.
Generally speaking, if a credit card is used well, it can provide cardholders with more convenience, allowing credit card users to purchase their favorite things in advance and enjoy the interest-free period. However, If used improperly, credit cards will also produce a series of adverse consequences, such as overdue interest, bad credit records, etc.
It is recommended that credit card users use credit cards to overdraft their purchases rationally, handle installments appropriately, and repay debts on time. They must not "use the card to maintain the card" or "borrow for a short period of time and use it for a long time." behavior to avoid falling into credit card debt.