Automated Investing

IS A CREDIT CARD BALANCE AN ASSET OR LIABILITY?



Earning money is not easy, don't make your life more miserable because of lack of understanding.  Be the owner of the credit card and don't be its slave.

AD2

Table of Contents
[]

    1- Is a credit card balance an asset or liability?

    2- When Credit cards in the hands of people without money

    3- When Credit cards in the hands of people with money

    4- Be an owner of your credit cards

Earning money is not easy, don't make your life more miserable because of lack of understanding.  Be the owner of the credit card and don't be its slave.

It is a fact that more and more young people are in debt.  The biggest reason pointed out is because of the habit of blind consumption, the money that should be saved for tomorrow then it is spent up today.  And if you have to find a cause for this, the credit card will certainly be called by many people.  Many young people today use credit cards like digging their own graves, the more they spend, the more debt they owe.

So is a credit card balance an asset or liability? 
 

IS A CREDIT CARD BALANCE AN ASSET OR LIABILITY?

1- Is a credit card balance an asset or liability?

A credit card balance is an asset or liability depends on whose hand it is in.  Those who insist on saying credit cards are as harmful as this, are all just their own opinion.  

The reality is that everyone uses credit cards differently.  Like a knife in the kitchen, some people use it to cook, others use it for other purposes, the knife's essence is not wrong, the problem lies entirely on whom use it. Similar to a credit card, a credit card in the hands of people with money and people without money, will work completely opposite.

2- When Credit cards in the hands of people without money

Credit cards will quickly become debt in the hands of people without money, which is a disaster.  One of the biggest reasons for this is that people without money often don't understand what credit cards are for.  They do not understand its real purpose but only know how to use it as a consumer overdraft loan.

For some people, getting a credit card is a great feeling of happiness, it feels like the bank automatically sends money into your wallet.  And this is the first step to get people without money into deep debt, because credit cards have distorted their consumption attitudes.  This is really scary.


Is A Credit Card Balance An Asset Or Liability?Is A Credit Card Balance An Asset Or Liability? / ph: pexels 

The number of people who own a credit card is now very large.  Unfortunately, not all of them possess enough financial knowledge to be able to use a credit card properly, instead, the ambiguity in how to use the card has made many people step by step closer to the debt nightmare.

In the hands of normal person, credit cards have essentially become a debt that must be paid, it's only a matter of time.  When we are in economic trouble, credit card is like a life-saving hero, but at the same time, we also accidentally sow an invisible bomb.

3- When Credit cards in the hands of people with money

The credit card itself is just a payment instrument, and people with money are very good at using it.  Some people think that people with money never take credit cards, of course not, there are many millionaires and billionaires who still use credit cards every day.  It's just that they don't use credit cards to overdraft, but use it to accumulate assets for themselves, or create a reserve fund, either for themselves or for the business they run.

Everyone has their own credit profile.  The size of the credit profile you have in the bank determines whether the bank will grant you money and how much money you will be granted.  Why is the higher your personal value, the more favourite by the bank?  In general, credit cards in the hands of people with money can become part of their own wealth.

4- Be an owner of your credit cards

The question here is why it is difficult for normal people to get money from the bank.  The answer is simple, because very few normal people like us know the concept of a "credit record". 

AD3


 

A credit card issued to an normal person should be used to build credibility with the bank and increase their credit assets in the bank, so that the bank can easily give you money when you need it in the future.  

“The larger the debt, the stronger the capacity.” - The real meaning behind this is a reference to the assets and credit records that a person owns.  When a person can owe a huge amount of money, the first thing that shows that this person's credit record must be very good before.  Because if a person really has no money, only two empty hands, even if they want to owe, there is no place to borrow.

A credit card is only an asset when it is in the hands of someone who understands it and can use it to create value for themselves.  And if it is in the hands of those who do not understand it, it will definitely become a debt.  

Earning money is not easy, don't make your life more miserable because of lack of understanding.  Be the owner of the credit card and don't be its slave.

IS A CREDIT CARD BALANCE AN ASSET OR LIABILITY?

300x600

Your comment
*
*
*
*
 Captcha

4 GOOD FINANCIAL HABITS FOR YOUNG ADULTS

Good financial habits are the key to your wealth and abundance.  Fixing bad financial habits will help you fix your financial risks. Below are 4 good financial habits for young adults which will help you soon achieve your Financial Independence, Retire Early (FIRE) aims and objectives.

Good financial habits are the key to your wealth and abundance.  Fixing bad financial habits will help you fix your financial risks. Below are 4 good financial habits for young adults which will help you soon achieve your Financial Independence, Retire Early (FIRE) aims and objectives.

Read more

5 FINANCIAL SAFETY TIPS

Have you ever wondered what is the best thing you can do for your money and your financial future?  Here is our list of the smartest things not everyone knows to protect their finances.

Have you ever wondered what is the best thing you can do for your money and your financial future?  Here is our list of the smartest things not everyone knows to protect their finances.

Read more

AD5

4 GOLDEN RULES FOR PROSPERITY AND WEALTH

Smart and lucky are not enough, if you don't know these things, you will definitely regret in life.

Smart and lucky are not enough, if you don\'t know these things, you will definitely regret in life.

Read more

MINDSET COACHING: 6 ABUNDANCE MINDSETS TO SUCCESS

To be successful, you don't just have to work hard to get to the finish point, but you must own soft skills that are the core part and govern all.  If you want to get rich or become successful, you should always cultivate in your mind the following 6 special Abundance Mindsets.

To be successful, you don\'t just have to work hard to get to the finish point, but you must own soft skills that are the core part and govern all.  If you want to get rich or become successful, you should always cultivate in your mind the following 6 special Abundance Mindsets.

Read more

AD6

3 Rules to Get Rich

When facing with difficulties, definitely do not rush to complain.  Sometimes we have to accept the loss, let go of something, then find another solution.  Only when you work hard can you receive opportunities and luck.

When facing with difficulties, definitely do not rush to complain.  Sometimes we have to accept the loss, let go of something, then find another solution.  Only when you work hard can you receive opportunities and luck.

Read more

4 MILLIONAIRE MIND PRINCIPLES OF WEALTH CREATION

Here are 4 Millionaire Mind Principles of Wealth Creation you can apply for your success achievement. 

Here are 4 Millionaire Mind Principles of Wealth Creation you can apply for your success achievement. 

Read more

AD7

5 EMOTIONAL TRAPS PREVENT YOU FROM GREAT SUCCESS

Emotions are the enemies of GREAT SUCCESS - emotional traps may keep your life in failure.

Emotions are the enemies of GREAT SUCCESS - emotional traps may keep your life in failure.

Read more

Green tea plant and benefits

Green Tea, we immediately think of a familiar daily drink, especially for the people of the countryside, with a distinctive character of the mountain.  However, green tea plant is not just that, with super effects that green tea plant leaves brings, especially in the prevention of cancer.

Green Tea, we immediately think of a familiar daily drink, especially for the people of the countryside, with a distinctive character of the mountain.  However, green tea plant is not just that, with super effects that green tea plant leaves brings, especially in the prevention of cancer.

Read more

Top 10 kinds of super smoothie contain high axit folic for prenant women

Pregnant women drink a lot of super smoothie containing high axit folic will help moms healthy and babies grow fast, greatly reducing the risk of birth defects. Below are top 10 kinds of super smoothie contain high axit folic which are very nutritious and good for prenant women.

Pregnant women drink a lot of super smoothie containing high axit folic will help moms healthy and babies grow fast, greatly reducing the risk of birth defects. Below are top 10 kinds of super smoothie contain high axit folic which are very nutritious and good for prenant women.

Read more

Copyright © Ojermes. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ojermes.