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  • Category: Miscellaneous

    Do you feel that credit cards, debit cards and KCC eat your future saving capacity?

    Now Kissan Credit Cards often referred as KCC, Credit Cards, Debit Cards are issued by the banks so as to lessen the congestion in the branch premises as the owners of such card can make their transactions anywhere anytime 24x7x365. These credit cards are issued to the even illiterate people who have somehow learnt to sign in their mother tongue or English but they are actually illiterate. In my opinion such cards need to be issued to persons with education up to matriculation level at least and if at all these are to be issued to illiterate then they need to be counselled about the use of cards as I have seen that card users spend money without any thought and become debt ridden as they eat away their future earnings and saving capacities in advance. Government owes responsibility so that the illiterate public does not land in debt trap. Do you feel that credit cards, debit cards and KCC eat your future saving capacity?
  • #422659
    Dear Ashokji,

    It's true. Credit cards, debit cards and KCC eat our future saving capacity. These types of cards completely changed our mentality to saving money. Our thought is changed about saving money. Every card holder is using his/her card for unnecessary transactions. This situation is for both type of people literate & illiterate. Illiterate people don't know how to use & literate people use these cards in different offers, discounts & schemes. Banks & marketing companies also encourage card holders to use these cards maximum. So that card holders are loosing saving capacity day by day.

  • #422675
    One thing is damn sure. Unless and until you wont maintain good balance at the banks , then these cards of no use and they become in effective. Who says that savings habit will wade if we start use of those cards. Both are interrelated.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #422891
    @K.Mohan, Whatever you said may be true for debit cards. Have you gone through the statistical figures of outstanding debts under credit card segment with no balances in their bank accounts.
    Ashok Goyal

  • #422988
    Mohan there is some basic difference between the KCC, Debit Cards and Credit cards.

    Debit Cards are only an alternative to carry physical cash. You can buy till the balance in the account is available only.

    Credit Cards allow you to use and spend even without having actual money in your account, but you are permitted to use it for withdrawing cash or purchasing up to pre-determined level. Yes, here is a chance to overspend and inviting interest and financial charges. It is a borrowing.

    KCC is a user friendly facility given by banks to the farmers who have availed loan from those banks in the form cash credits. As many of the inputs for agriculture are not available in the village. Hence they have to go o a nearby town t bu these items. If ready cash is given, they may get some discount. But carrying high amount of physical cash is risky and may be spent otherwise. Hence the KCC facility. Using this card the can buy the goods they need. But as the bank is monitoring these transactions later when they come for reimbursement, banks can find whether the spending is on productive purpose or speculation or otherwise. Accordingly they will act further.

  • #423016
    People using credit cards are more careless than others in their spending habits and they often find themselves over-debted. When you spend an amount without really owning it, than you owe it. These people rarely have the money to repay the amounts spend through their credit cards within time, and get charged with interest only putting more burden on themselves. Thus, I am of the view that credit cards destroy your savings habit.
    Success is not granted, it is earned!

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