Opinions | City Talk
It 'is hard but crucial' to cut credit card spending
Given how often banks advertise their credit cards, and how fast prices are rising in Dubai, it is tempting to think that it is much easier to get into debt than out of it.
- Staff Report
- Published: 00:00 January 8, 2007
- "For online purchases credit cards are useful - for some purchases, they won't accept debit cards." - Donna Bracey
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Dubai: Given how often banks advertise their credit cards, and how fast prices are rising in Dubai, it is tempting to think that it is much easier to get into debt than out of it.
After all, who wants to save up for a new television or stereo system, when you can buy almost everything on credit and worry about the payment later?
City Talk spoke to a cross section of Dubai residents to find out if they could live without their credit cards.
We also asked them whether credit cards were tempting us to get trapped by debts we would never be able to pay off.
Raymond De Mundo, 35, a courier from the Philippines, said credit cards could "make your life miserable" if you got carried away.
"Now I am very careful, unlike before when I just kept on spending," he said, adding that now he could completely live without a credit card.
"For me it's better without, otherwise you have late payment fees," he said.
Niall Grant, 33, a quantity surveyor from the United Kingdom said credit cards were "certainly a necessity", being particularly useful for online purchases.
"I buy tickets for events and concerts and anything else on the internet, using a credit card," he said.
Like De Mundo, however, Grant warned that there were financial risks linked to having credit cards.
"Certainly, there's too much temptation to use your credit card and pay it next month. The interest just compounds and compounds.
"The advertisements [for credit cards] encourage you to get something you always thought you couldn't afford. They push you over the edge," he said.
Accountant Mohammad Hassan, 32, from Palestine, said "everybody has a credit card" because using them was easier than carrying cash around.
He added: "Maybe if there's an emergency and you don't have any money in your pocket, then it's very useful to have a credit card.
"It is possible to live without having a credit card, but in a big city like Dubai and in places like the United States and the United Kingdom so many shops have machines for them you almost must have one."
A similar point was made by Vijay Raghavan, 47, a purchaser and driver from India, who said he could live without a credit card but added it was useful to have one for day to day purchases.
He is currently applying for a credit card and said he "didn't have the character" to get into trouble by spending too heavily on the plastic.
"If I buy something I would pay in advance. I would deposit the money, and then buy," he said.
Iraqi marine engineer Akram Arab, 44, was another who pointed out the convenience of purchasing with a credit card. "It is much better. You can use it if you don't have cash and also you get a receipt, which can be useful. I don't want to have too much cash with me," he said.
Arab said he had "a big problem" early on when he had a credit card and piled up charges because contrary to what he thought was happening, his salary was not being transferred to pay off his credit card balance. However, now he ensures the credit card gets paid off quickly.
"I had to pay Dh4,000 that time. That was very bad for me. Now I control my salary and my shopping," he told Gulf News.
Lawyer Donna Bracey, 34, from Great Britain, said she does use a credit card - but only because of the convenience of making purchases electronically.
"For online purchases especially credit cards are useful - for some online purchases, they won't accept debit cards. I make sure my credit card is paid off each month - my bank takes the money straight out of my current account," she said.
Mohammad Iqbal, 36, a visitor from India, avoids credit cards completely. "I don't use them. They are not needed. Cash is better," he said, safe in the knowledge that he would never be swamped by ever-increasing monthly demands for payment.
Natalie Kunytska, 28, a graphic designer from Ukraine, is also not likely to end up heavily in debt because she said her bank was not giving her much credit on her cards.
"It is not a big amount of credit at all. I don't even use the card. I prefer debit cards - I think they are easier and you don't have late payment fees, nothing. You can use debit cards to withdraw money and to pay in the supermarket, whatever you want. I don't really need a credit card - if I need credit I would rather go for a loan," she said.
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