UAE | General
Credit cards: Living without them
Salim Seddiqi from India swore off credit cards in 1998 when the "exorbitant interest rates and fines" finally got the better of him.
- By Sanya Nayeem
- Published: 23:53 July 10, 2008
Salim Seddiqi from India swore off credit cards in 1998 when the "exorbitant interest rates and fines" finally got the better of him.
Today, this veterinary doctor is debt-free and promises his family of five will never go through credit card hassles again.
A Fujairah resident for the past six years, Seddiqi's relationship with plastic money soured when he realised he was paying for much more than just his purchases.
"There are a lot of strings attached when you have a credit card. My bill was one and a half times higher than the amount it should have been; that's when I knew I had fallen into a trap," he said.
But once he paid off his debts and cancelled his credit card, there was no looking back. "When you own a credit card, you are always pinched for money and this is an added stress in today's hectic times," Seddiqi said.
Having learned to manage within his budget over the past decade, Seddiqi is now passing on his experiences to his children.
He said: "I give my children an allowance every month and they are learning how to save. But more importantly, they are learning how to spend."
Do you think credit cards have more disadvantages than advantages? Why? What is your biggest concern with plastic money? Tell us at letter2editor@gulfnews.com
Your comments
There is no hassle in using your credit card expect the fact that one needs to know how to use it and to what extent. we all know about the hidden charges and the late payment charge which most of us experience so in order to avoid all this its best that we use the card and pay it on time. I have a credit card but hardly use it since I always use my Debit card as it's an automatic deduction. I do not have to pay later or have any hurdles with the bank.
Mathew
Dubai,UAE
Posted: July 11, 2008, 13:18
I have been living in UAE since 1991 and and I have never applied or had one credit card with me so far. I am still thinking whether I should go for one or not? Most of my friends who has credit cards advised me not to apply and they said I am better off without them. I don't know why?
Nashua
Abu Dhabi,UAE
Posted: July 11, 2008, 12:08
I strongly believe that Credit cards are not at all bad. The usage depends on the person. If we can use it as real plastic money nothing wrong with that. I am holding credit cards for the last 6 years and I never paid any extra money or interest for that.
Subodh
Abu Dhabi,UAE
Posted: July 11, 2008, 11:50
Never had any Credit Card, and believe me Life is really cool without one.
Tariq
Abu Dhabi,UAE
Posted: July 11, 2008, 11:24
Controlling expenses is about yourself. it has nothing to do with the credit card. but once you use it, you have to know the consequences. the credit card in your pocket is supposed to be under your control, not the opposite.
Syaifoel
Doha,Qatar
Posted: July 11, 2008, 06:50
Keep away from credit cards even if they offer the best deal ever. However, I think Debit Card is a good idea to have, you just spend what you have in your bank account and you don't have to carry cash.
Hassan
Ajman,U.A.E
Posted: July 11, 2008, 05:40
I use to use credit cards , but not anymore, even no loans at all, I found out by the hard way that its a way to go down insted of going up in life, the banks arr incresing their intrests at anytime without informing. More late fees, hiding charges.
Haitham
Dubai,Jordan
Posted: July 11, 2008, 01:56
Did people not go shopping before credit cards came into vogue? It is but a dangerous habit in immature hands. I stick to debit cards for my shopping, and more the happier man for that.
Sreenath
Abu Dhabi,UAE
Posted: July 11, 2008, 01:54
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