'Credit cards are silent killers'

We asked Get Ahead readers to send in their opinions on the credit card vs debit card debate. Here's their take on the advantages and disadvantages of credit and debit cards and the problems they faced after using their credit cards :

Credit Cards can 'earn' you lot of money

I have been using 3 Credit Cards of different Banks with unique benefits being offered on each Card. The mantra with Credit Cards is to spend only what you can actually pay before the Due Date in totality. NEVER revolve the Credit or pay only the Minimum Amount Due, as then the Banks start squeezing you with interest on interest which is as high as 36% p.a.

Now the benefit with Credit Cards is the Reward Points Program. I have "earned" as much as Rs. 3500 in 1 year from a certain Credit Card being offered by a Bank which gives Cash-back as much as 4% on Departmental Stores Shopping & 2.5% extra Cash Back on Petrol Purchases.

But this has been possible only because I have paid all my Bills on time & never ever paid a single paisa in interest. My second Card which is Co-branded of which I have been a member since past 12 years, I might have "earned" as much as Rs. 8,000-10,000 in Petro Coupons, just by filling Petrol through this Card. The third Card I only use to buy my Insurance Policies, Renewal Premium etc. of the same Bank as this Bank gives the facility of Interest Free EMI's on purchase of its own products.

Thereby I actually earn interest from the Bank by having derived full value of the Service at purchase, whereas only paying a 12th portion of the purchase amount, every month.

I actually have a 4th Credit Card also which is Co-branded with a Grocery Store Chain & offering as much as 5% discount on purchases from its Stores.

Now coming to Debit Cards, which DO NOT offer any free Credit Period or Rewards on purchases, but make you disciplined in not spending more then actually what you can pay for.

However I feel Credit Cards are any day much more useful as you can also Plan your future Payouts by utilizing the Credit Free Periods, since you would know your Cash Flow status at the due date of payment.

But remember 'DISCIPLINE' is the MAGIC word if you want to "earn" money & that too with free Credit ranging from 10-50 days instead of paying interest.

                                                                                                                                                            -- Sumeet Goel

It is heavenly to use credit cards

Credit card, when used very carefully, has all the advantages in the world. First, a guarantor is needed when any bank or financial institution is approached for a loan. Next, they will cut a certain part of it and convert it into shares. Most probably, it is 10% of the loan amount. This is not the case with credit cards. Swipe it and the payment is made followed by handing over the goods. No hard cash.

SBI card offers a Flexi Pay Plan wherein any transaction has to be reported within 10 days for conversion to Flexi Pay Plan. Although with a flat rate of interest of around 10% it is still affordable to use credit cards and Flexi Pay Plan. Further, online shopping sites require Credit Cards for realisation of payment which is done within a few hours. These online shopping sites are actually "window shopping" sites where one can get to know the prices of commodities, rather than asking for them in shops.

I have reversed many a dues and penalties of SBI Card through helpline numbers. I would get my statements late and would be charged for late payments. Reminding the Card company of such dubious policies and the RBI directive to these companies not the charge penalties to customers in case of late statement delivery, they have accepted requests and reversed any penalties.

With the increasing amount of credit facility, every 2 - 3 years, and with the Flexi Pay Plan, it is heavenly to use credit cards, of course, within ones limits and careful planning.

I, for one, have brought many commodities like laptop, mobile, furniture, vacuum cleaner, etc. through credit cards.

                                                                                                                                                       -- Vinay Khedekar

Credit cards are silent killers

Credit Cards are silent killers of your hard earned money, once you are trapped then you turn out to be prestigious slaves for the banks, they enjoy the benefit out of you with their tricky flashy discounts and offers, where their calculations could be understood only by the banks.

I had a terrible experience with the SBI Card, though I had dropped the cheque in one of the SBI branch, Perungudi, Chennai, before the due date, ie 26th of every month, on 28th of the respective month I got a call from the SBI Card centre stating we have still no received your check for the respective month.

I said to them please do check it up with the bank where I have dropped it or with your clearing office. Suddenly the guy who spoke to me through phone started raising his voice and he was not ready to accept what I said. I replied back saying him "Please do speak politely with manners with your customers and do check my past payment history, I have paid by cheques ahead of time", and suddenly he replied back saying with arroagance "This is the way we speak". I just kept the phone down.

This event made me to close my SBI Card the next day by paying out the entire remaining balance. Perhaps I was using this card for the past 2 years. Now I am free with no more credit cards and no more headaches! Never opt for a Credit Card, its a silent killer!

                                                                                                                                                 -- P.S. Pramod Kumar

Salaried people should not have a credit card

At the outset, all the bank offering credit card to almost businessman, self-employed and salaried person and invariably even if you have credit card with the same bank you will get call from the same bank customer care department almost everyday.

I feel credit card is useful only for the business man not for any individual. The salaried person can not afford to have more than one card if still he wants to have more than one he should definitely burn his finger at any point of time.

Most of the banks offer you more credit limit by way of inviting to make more purchases on your card to enable you to increase your debt and ultimately the holder of the card suffers lot by way of paying more interest by way of paying minimum amount charges on their purchases.

I really feel if we are a salaried person best thing is to come out of this entire problem by way of not having credit card.

Ramamurthy Sridhar

Credit and debit cards can create financial burden...

I am an Accountant living in UK. I personally feel that everyone should have at least two credit cards. Because I travel a lot and it is

very useful to get things done like paying for your hotel accommodation etc. But I have arranged a direct debit payment on a monthly

basis for my credit card expenses, so it is not a burden for me at all.

I personally feel that any financial device like cash, credit or debit cards will create financial burden like debt if not managed properly.

Debit card is a blessing because we can carry it in our purse instead of cash. If our wallet is ever stolen if its cash then we wont be

able to do  anything but if it is cards we will be able to call and cancel them.

                                                                                                                                                            -- Mary Vincent