Credit Cards are on the Way Out

I often call them “liability cards”. Why? Because they are a liability. They don’t do any good to society as a whole as they allow you to spend before you earn. They encourage people to spend more than their mean. I often come across the clients who are stuck in the credit card debts and the advice I gave them was to simply cut their credit cards off.

Well, but don’t they give us reward points or cash backs? This is often $100, or $75, for $1 back, or cash reward of $250 when applying for a credit card. Do you take the bait? With retail stores having to fork out an additional 2.5% of the money to the bank, the cost has been passed back to the consumers. The only winners here are the bank and the credit card companies.

I don’t like credit cards, but I have to have one. There are a lot of payments I have to make online that only accept credit cards. With the direct payment systems like “Alipay” growing in popularity, credit cards—which once used to be a symbol of status—are becoming an old fashion and we are going to see them become history, just like Kodak.


About Lucia Xiao

FINAX founder, Lucia Xiao is passionate about helping Kiwis reach financial freedom. Lucia’s an ex-Housing NZ tenant, who through hard work and the correct strategy, built a NZ$17M property portfolio in just 5 years. Now, she wants to share her knowledge with you so you too can use real estate to achieve financial freedom and live your true life purpose. Find out more about Lucia’s mentoring program through the link.

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