Wow this video is an eye opener to all of us. The facts that you have presented are relevant and we all are well aware of that as well. But only thing is that we never observed them as you have mentioned. Woah ! Completely mind blown 👍🏻
@@AkshatZayn sorry you have made just a biased video...you have missed a very crucial point of having the free credit for one month and invest it for short term...if you are wise enough you can make money from it also....cheers!
Listening to this video made me remember a quote I love about credit cards. "Credit cards are useful only for those who don't need credit. For everyone else it's the most expensive source of borrowing" Though I'm a frequent cc user, I loved the video as it rightly points out the psychology with which a cc should be used.
credit card usage is profitable to you as long as you use cc to buy things u required NOT when u buy things just to use cc !! this is damn important . for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
That´s how it works... they try to get you into a big buy. And you are thinking you saved some money... but in reality you lost money. All this cashback stuff is a part of this. @@sonamdeshpande7281
"Simplicity is the best way of being financially free"- one of the best lessons for the youth out there. Really loved the video! Indeed, your simplicity says a lot about your financial discipline and it's truely inspiring :))
credit card usage is profitable to you as long as you use cc to buy things u required NOT when u buy things just to use cc !! this is damn important . for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
When he said that i am one person going against billion dollar industry. He earned the like for honesty. 1 million subs in 2022. Keep the content rolling.
Lol! That's how you win sympathy. 😂 "I don't know if I will be alive after posting this video. There are very powerful people who will go against me because I'm speaking the truth" 😂😂
I could say, spending wisely with credit card and timely payment has lot of benefits like loads of cashbacks, reward points etc. All credit cards I hold are limetime free. Not even one single payment was missed from past 15 years for the 4 credit cards I hold.. Spend wisely, pay timely, Live well :-)
@@himanshusolanki3799 not sure everyone is eligible for life time. I am a salaried employee and while applying credit card they ask for salary slip. I hold HDFC regalia, Citibank rewards, icici bank platinum, icici bank Amazon pay, sbi simply save card. cards like Citi and sbi as annual fee waiver of you spend 30k and 1L respectively per year. Of all, I like Regalia for their offers and premium facilities.
Your entire video has an inherent assumption that one doesn't have self control when using a credit card. If that is the assumption then such people would face much bigger issues in life than credit card debt. For logical people, it is an amazing service.
credit card usage is profitable to you as long as you use cc to buy things u required NOT when u buy things just to use cc !! this is damn important . for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
@@andyc9902 he is right ,. if u assume that u can't avoid compulsive buying if had a credit card ,., then u ll feel as if credit card will is a 'cheater ' BUT , if u use wisely then cc is really beneficial. for example -- spend some money (say rs 50000) using ur debit card for 1 month And spend similar amount of money in next 1 month . then, compare urself how much a cc is beneficial to u
You are a Gem :) Seriously loving all your videos as they are truly informative, intellectual, precise for people of all age groups especially youth. Can't thank you enough for making people 'Financial Literate'. You are an inspiration to me!
@@sonamdeshpande7281 its not bad idea when you have life time free credit cards.. in other cases you need to pay issuance and annual fees and this might be liability.
This is actually quite a brave video Akshat. I also have always evaluated credit cards as a means of Corporate companies promoting consumerist culture. For the same reason I have never owned a credit card and will never own one in future. An example in which I have seen my friends who where dead against watching crappy movies at the theatre after getting the credit card started going to theatres every month to watch crappy movies simply because they were offered discounts. Also as you said in the video that we cannot compare our culture to that of the United States. In United States the social security is strong enough to take care of their people who are interested in consumerist culture. I would again say Kudos for this brave video.
Great argument! 1. You think you are spending on needs but actually you have crossed the limits for example 1chps pack without a credit card but with one, I shall buy 3. 2. Unnecessary consumeristic, materialistic life which could be simpler. 3. One the name of discounts I shall buy higher than required leading to bad debts same as first but this is more focused towards non-essential things. I wanted entry-level phone but because I saw discounts I bought a mid-level or even high-level
Hey Akshat! Being from a business family, my dad always disregarded the use of credit cards with all this same minimalist viewpoints and tbh it helped me alot to gain financial freedom. Loved your video! Great content❤
credit card usage is profitable to you as long as you use cc to buy things u required NOT when u buy things just to use cc !! this is damn important . for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
Hey Akshat, this was a real eye-opener for me. I received a credit card just 3 months back, and since then my behaviour changed from being a "saving-oriented" person to a "spending-oriented" one. Thanks for the video, really enjoyed it! Would love to know your journey to becoming a millionaire! :)
@@sonamdeshpande7281 it's all about having a cute cat 🐈 in your hand which will scratch when you don't pay attention or no cat at all. None never said it's bad but there's constant risk cuz of human nature if you can manage that it's good for you otherwise it's good for your credit card company No bad at all😂😂😂😂😂
@@sonamdeshpande7281 The nature of credit being readily available can give you a false sense of affordability that can change our spending habits. It completely depends on the person's spending habits and financial awareness. There is a reason why the interest rates on cc are so high and missed payments affect the credit score drastically.
@@gulammohiddin5747 if we want to enjoy some benefits, it's okay to keep "auto debit " option ON ., so that bill payment is not delayed . how would you feel when u do shopping of 20,000 in a Mall , bill counter displays 5% off with HDFC credit cards and u don't have a cc to avail the offer?!!
@@sonamdeshpande7281 Did you watch the video? He explains about this exact thing. You can bargain and get the same discount w/o cc. Well thats how you can get things done in India. In countries like US you rarely see anyone haggling for price.
That's why I always pay my bill as soon as I purchase anything via a credit card. Thus it exhibits Debit card like behaviour, restricting me from overspending, and gives me extra rewards as well. Also, my credit card has zero fees (be it annual or sign up). So its a win for me!
Hi Akshat, I totally agree with you. And I like your quote "Money is more about psychology". Let me tell you a story about credit cards. Earlier, when I got my first credit card, I use to buy vegetables, petrol, or using every time where I can find a swipe machine. I got lots of rewards points. Here is the trick of credit cards. So, I had 50000rs spends on credit card and I have 1 Lac in my account. In the back of my mind, I always thought I have lots of money and which leads me to buy more unnecessary stuff. And in last, I was the loser. So I stopped using credit cards after that.
Thanks for the video, I'm 31 now, i keep getting calls for Credit card, after watching your video, i have got a clear picture, simplicity is the best way of being Financially free, "If you buy things you don't need, soon you will have to sell the things you don't need". Warren Buffett.
Really just a couple of days back I had same conversation with my mom and she was also saying same thing that simplicity is best way of living debt and tension free. Kudos to you Akshat keep the good work. Wish you more success.👍
As a 22 year old just starting out on her financial journey, this video is very helpful! Please come out with some videos for financial tips for young people like me, I would love to hear your suggestions on financial well being in your early 20s. 😊
I don't think this video will get dislikes just because you have put forward facts & analysis which enable people to deduce the utility and non-utility of credit cards themselves rather than blindly trusting a straightforward statement of not owning a credit card. Thanks a lot for your insights!
Point to be noted: Most of the debit card (with 500+ annual maintenance charge) do provide free launge acess. Food is free in airport launge. You might go well fed, but it's mostly cheap to take connecting flights with 5-6hrs difference. In this case, it's definitely good to go to launge.
The issue is not in credit card.Its how you use it.But rather the most important thing is it affects our behaviour,our psychology. And particularly this video I found out that the best video because it not only talks about pros and cons but more important our behaviour,our psychology. And I am convinced that for me using credit card will take my mental peace away. But here the exciting for me instead of taking credit card I would buy shares of credit card companies, because of the people who support other side of argument, because consumption through credit card will increase.
Hello Akshat You are to the point. I feel credit card changes our spending behaviour very much. Most of the time we end up spending on unwanted stuffs. To reduce the burden, we will accept the emi conversation offered to us. When we take a pause on a later date and look back, we realise how much extra we have paid wherein on the first place the expense itself was unwanted.
Nice video. But its important to understand that it is addressed to general public. the 999 out of 1000 people. Answering at question at 10:31. Who pays for credit card conveniences? Credit card companies rely on you to use these conveniences to a point beyond what you can afford. such that you have monthly payments at high interest rates. However this is a double edged sword for the credit card company as well. There are those people as you said, one in a thousand, who spend using credit cards, to get benefits like reward points, insurance, risk free safe spending, availability of customer care etc. These are amazing benefits if you make your payments on time. A basic rule to follow is to have cash in bank at least as much as your credit limit, and then credit cards no longer attract unnecessary purchases, since you already have to money to pay for what you would have otherwise bought using credit cards. Secondly, Credit card in the US are needed to build credit. They arent in India. In the US if you dont have any credit, it is not considered a good thing. Note that having credit doesnt mean having loan. Having credit means having credibility that the banks would give you a loan if you wanted one. To build this credit, you need to have credit cards. the more the better.
"Money is more about psychology than finance itself". 💯 True. I will tell my own experience, in Jan 2021, I don't have any dues towards card's/loans,I thought I can save next month onwards from my salary but eventually by April I ended up with credit card dues of around 52k,I don't know how it became that much... it's all psychology...
Maybe your CC statement would help you identify how it became that much. You didn’t donate that money to the bank , you would have also consumed services or products in exchange. 🙏🏼 Being responsible.
@@cadarsh80 agreed with you and with credit Cards we are tempting to spend, and also we have dam confidence on anyway it's going to pay after 40 to 50 day's na.
Akshat I totally agree with you. I don't support taking unnecessary debt in any aesthetically pleasing form, which is a slow poison, and like to stay away from spending uncontrollably. Investing correctly should be the way one should follow instead of fast credit which may sometimes be difficult to pay. Great video man.
Thank you so much for listening to my suggestion. Thoroughly enjoyed watching this one! 😀 Edit: Can’t speak for all but atleast I am with you against this billion dollar industry after watching the video :)
I totally agree with this. Using credit cards leads to bad financial discipline and creates a vicious cycle of bad fund management. Thanks for taking this up!
Actually one big advantage of credit card is in case of a fraud you will not lose money directly from bank account, which is what happens if a debit card is affected by fraud. While paying credit card bill you can alert customer care about fraudulent transactions hence can avoid paying for that transaction in the bill. So that amount that was affected by fraud will be safe in your account
You hit the nail on the head. I too don't like credit cards. But given how lawless this country is, having a credit card protects your bank account from fraud. Banks really don't care if your account has been hacked and all your life savings stolen. A credit card provide at least one more layer between scamsters and your money. Ironically the best point has the least amount of likes.
Hello Akshat,thank you for making and sharing a very lucid and powerful video.I have been making the exact same arguments about why I don’t own a credit card despite coming from a financial and banking career background. I have been having losing arguments with some of my juniors who are earning 30-40k and buying an iPhone on EMIs ,because I don’t seem to understand the ‘social’ requirement of having an iPhone and other consumer goods! Best wishes and keep making these videos. Your child will surely be proud of you in the future.
To the point Akshat. Very well explained. Even I'm someone who has fallen to these credit card traps in the past and have paid huge interests, even more than the principal amount. I'm also of the same view that it's best to avoid using a credit card. I see many people having credit card debts simply falling to traps of minimum credit card payments.
Amazing video Akshat! though I own a credit card, I believe it is in my nature to not indulge in frivolous spends. I think it is very important to keep in my mind that you need to repay the credit card money in a month. As you rightly said, its all about the psychology! However, I would like to point that card companies make their money mostly from the retailers. People pay the price only if they are revolvers or are paying annual membership fees (which can very easily be reversed nowadays). Keep up the good work! :)
This is so true, people don't understand that credit card loans are the most expensive loans out there which charges them somewhere around 35-40% interest rate per annum, but just because of some small lucrative offers by the credit card companies people end up neglecting this big loss.
Thanks for bringing out of box informative stuffs in your every video. Really liked the statement "Simplicity is the best way of being financially free"- Most applicable truth to the youth living on cities in current era.
Thank you. This argument of having credit card or not has been there for a long period in my family. I have shared this video to all my family members. Thank you.
Credit card is trap for most of the people, only few utilities it properly. I have not bought any CC in my 8 years of professional career and will not buy any in future too. Thanks Akshat for your efforts.
Rightly said. My teacher also said not to use credit card. But I was in a dilemma, as there were numerous famous youtubers who encourages to get a credit card. Now after watching your video, my dilemma is solved. I will not use redit card from now on.
Hello Akshat, kudos to all your efforts and time to research and convey some insightful thoughts in a simplified manner. Look forward to more such insightful videos👍🏻
credit card usage is profitable to you as long as you use cc to buy things u required NOT when u buy things just to use cc !! this is damn important . for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
So I watched your video today, I would like to show some Pros and Cons of using credit card, (I'm not against your views nor in support of credit card company) - Cons - 1. If not used properly you can be in huge debt. 2. They lure you to buy goods beyond ur reach ( expensive) by giving unbelievable discounts. 3. You buy more number of products against what actually needed. Pros - 1. It gives you benefits like lounge access ( rather what you said in your video, lounge access means food for ₹2, in which you can eat anything and not paying any extra amount, the way you mentioned is very different). 2. Help to pay bills very conveniently. 3. You get no cost emi ( again a arguable points) 4. Save us from frauds by retailers. 5. Provide insurance........and many more. One Point Summary - if you know how to spend and where to spend wisely and pay your bills on time then credit card is boon(good) or else it's a curse(bad). I have seen this, I use credit card and have savings too but on the other hand my friend is in debt of lakhs of rupees.
Hey Akshat! This video was great and with the habit of consuming powerful content from you i'd request you to please make a video on the best platform to upskill oneself online..Thank you
Totally agree with your arguments Akshat. I have not had a credit card in my life and it hasn’t affected me in any way. If you save well and invest wisely then you are sorted
Sir I believe that if one treats his Credit Card as his Debit Card linked to his Savings A/c then it automatically solves all the problems related to debt and overspending. Also side by side that person can avail cashbacks, discounts and coupons wisely to get benefited by them.
Best one akshay , I was using credit card for 20 years but discontinued since last one year, even though I was paying bill to bill , I feel better life without credit card , u spend within ur means no over spending
This video reveals a lot about the credit card industry and their intention of driving consumerist culture to make insane profits. My friends also give the Airport lounge logic of using the credit cards. The credit card companies are so conniving that they subconsciously make us want to spend more. Thanks and lots of respect for making this video Akshat.
credit card usage is profitable to you as long as you use cc to buy things u required NOT when u buy things just to use cc !! this is damn important . for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
Yes as you said its a psychological thing, actually credit cards not having that much power to hurt your finance, instead its very good if you have proper mindset to spend wisely and pay the credit bills on time (I have chosen to pay it through auto debt mode so no need to worry about that also). If you use credit cards wisely(use it just like your debt card and make normal purchase only simple as that) its having lot of benefits like offers, cashbacks etc and actually it helps you to build a good financial discipline as well.
Hey Akshat, here's my theory about how CC companies make money. They actually profit off a user who misses their payments but has the potential to pay. Someone who never misses a payment schedule or someone who can't pay up at all are both loss making entities for them. I think that's why they lure you towards more spends so that when the user starts bordering on their "extra" purchases with essential spends like rent, groceries, investments, etc they will miss out on payments but not entirely lose their ability to pay. Am I close? (A bit unsure because I don't have any data on this)
@@143kiruba correct. They also avail this facility in spite of charges coz it saves them from carrying huge cash every day to deposit in bank and long waiting time. Money goes directly in bank. So its the vendor who shares a part of his profit for the convenience and time saving he gets.
I agree with you Akshat unnecessary "faux" benefits and moreover, some bank managers even harass you to take their platinum credit cards and stuff I strongly support the points you made here
You are absolutely right I have a history of using credit card for the last 17 yrs. I realised the same points you mentioned. Then i gradually started closing one after the other. I used as many as 5 cards. I closed sbi, icici, american express. I even closed hdfc but because to pay some online fee for my son exams at jee, engineering colleges i again started using hdfc., but very less out standing. The points you mentioned were really correct, credit history, cibil score are points to be very important but not at our risk. Emergency fund, some savings should be there. Spend from income but not from credit
Thank you, your video just confirmed the reasons for which I don't take credit cards. And if someone is minimalist and manages their finances well, they don't need any credit card. And you have some great content. ✨
Thank you so much Akshat for such great content. The amount of informative opinion you bring on UA-cam is immense and it seriously gives many of us a peek into the something very important one should do in life
*NOBODY BECOMES MILLIONAIRE OR A BILLIONAIRE'S BY WORKING FOR OTHERS AND DEPENDING ON THEM, GOOD INVESTMENT BRING MILLIONS OF DOLLARS, AND CONSISTENCY BRING BILLIONS, THE MARKET IS ALL ABOUT BITCOIN AT THE MOMENT NOW.,*
I have two credit cards and always keep tape on what i am spending , i never missed a credit card bill. From this i love the connecpt on emergency funds , keep tape on your spending habits and how you can be financially stable by following financial discipline. Thanks Akshat
While I totally agree with most of your points, at the same time I feel if a financially sound person uses credit cards with appropriate behavior, it won't harm either. It's true that the credit card industry is designed to exploit our consumerist behavior, we can game them too by being a Lil bit more careful about how we spend. But then again, it is very easy to get lost in the marketing tactics. Thanks for calling out all these, we really need to know this. It would be really helpful if you could create a video around tax planning for youngsters, which is unbiased like this.
@@AJK666007 It's not you don't have the money. It just helps consolidates all month's expenses, and I just have to pay once in a month for which the money and emergency fund is always there in the bank account. Credit card isn't free money. As long as you only spend what you have in bank balance. Pay timely and get various benefits.
@@ashishIMpro as long as you have the discipline and know what you are doing it's all good. Problem however start when you slip up on one payment or go overboard with your spending. For me credit card is still borrowed money no matter what and this is the very reason why I never had one and will probably never get one going forward. Having said that, Im missing out on certain benefits like you mentioned. However I'm ok with that as my debit card does the job for me and I don't have to think about the payments once done.
Your video will definitely break the internet one day, not sure if that video is going to be this one or one that'll come in future. I am already a fan. Good Luck.
Can't same arguments be made against debit cards as well? Especially for the ones having good sums in bank account? Ease of payment comes from debit card and upi as well. I understand for younger ones with less savings it really shifts the mindset towards easy spending, but is that true for someone in late 30s as well? I believe credit cards is a took like any other tool, you can hurt yourself with it if you don't know how to use it.
Fully accept your views I stopped using plastic money , in my very start of my career, after failing Bill payment, and credit card company charged very heavily Now very happy with debit card If you have money spend or otherwise, sit tightly at home
Loved the content...I hav 3 credit card and I use them like gold ... however most people may not....u have my 200% in this venture and thought process....keep going...
"If you buy things you do not need, soon you will have to sell things you need."
Warren Buffett
Well said :)
Wow this video is an eye opener to all of us. The facts that you have presented are relevant and we all are well aware of that as well. But only thing is that we never observed them as you have mentioned. Woah ! Completely mind blown 👍🏻
@@AkshatZayn sorry you have made just a biased video...you have missed a very crucial point of having the free credit for one month and invest it for short term...if you are wise enough you can make money from it also....cheers!
Listening to this video made me remember a quote I love about credit cards.
"Credit cards are useful only for those who don't need credit. For everyone else it's the most expensive source of borrowing"
Though I'm a frequent cc user, I loved the video as it rightly points out the psychology with which a cc should be used.
credit card usage is profitable to you as long as you use cc to buy things u required
NOT when u buy things just to use cc !!
this is damn important .
for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
Very nice quote! 😁
That´s how it works... they try to get you into a big buy. And you are thinking you saved some money... but in reality you lost money. All this cashback stuff is a part of this. @@sonamdeshpande7281
"Simplicity is the best way of being financially free"- one of the best lessons for the youth out there. Really loved the video!
Indeed, your simplicity says a lot about your financial discipline and it's truely inspiring :))
Glad you liked it!
credit card usage is profitable to you as long as you use cc to buy things u required
NOT when u buy things just to use cc !!
this is damn important .
for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
After watching this video
CRED's kunal shah be like: "mai kya karu phir? JOB chhod du? 😅
😂😂
:D :D :D
Hehehe
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
@@sonamdeshpande7281 only true for 1-2% people
When he said that i am one person going against billion dollar industry. He earned the like for honesty.
1 million subs in 2022. Keep the content rolling.
There are many such videos in youtube, this is not the only one.
Lol! That's how you win sympathy. 😂
"I don't know if I will be alive after posting this video. There are very powerful people who will go against me because I'm speaking the truth" 😂😂
@@g.i.y.u true 😀 . Techniques to increase youtube viewers.
I am with you on this. Finally someone has the courage to bell the cat.
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
I could say, spending wisely with credit card and timely payment has lot of benefits like loads of cashbacks, reward points etc. All credit cards I hold are limetime free. Not even one single payment was missed from past 15 years for the 4 credit cards I hold..
Spend wisely, pay timely, Live well :-)
Do you have hdfc credit card will use it to book products and give you some commission?.
If interested please reply
Which are those lifetime free cards? I'd like to join this lifetime free party too :p
Exactly
@@himanshusolanki3799 not sure everyone is eligible for life time. I am a salaried employee and while applying credit card they ask for salary slip. I hold HDFC regalia, Citibank rewards, icici bank platinum, icici bank Amazon pay, sbi simply save card. cards like Citi and sbi as annual fee waiver of you spend 30k and 1L respectively per year.
Of all, I like Regalia for their offers and premium facilities.
@@iamvikaskumar wow. That's great.
The day when Indians realize that being rich is not using an iPhone at 25, but rather than owning a bungalow at 50, we will become a wealthy Nation.
Absolutely correct 😃
Bhai unke maarze 25 mein nahi lenge iPhone toh 60 mein lenge kya?
@@jinfin221 ok
@@micagar2510 Yes
@@jinfin221 ok
Conclusion sums up all the points a " money is more about psychology than finance itself"
Best lines till date .
Thank brother
:)
Have never used a credit card in my life. My arguments remain the same. I agree to all the points completely. Keep up the awesome work !!
Having studied economics.. the way u break down economics into simple lay man language is good. Keep up the work gentleman 👍🏽
Your entire video has an inherent assumption that one doesn't have self control when using a credit card. If that is the assumption then such people would face much bigger issues in life than credit card debt. For logical people, it is an amazing service.
credit card usage is profitable to you as long as you use cc to buy things u required
NOT when u buy things just to use cc !!
this is damn important .
for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
No
@@andyc9902 he is right ,.
if u assume that u can't avoid compulsive buying if had a credit card ,., then u ll feel as if credit card will is a 'cheater '
BUT , if u use wisely then cc is really beneficial.
for example -- spend some money (say rs 50000) using ur debit card for 1 month And spend similar amount of money in next 1 month .
then, compare urself how much a cc is beneficial to u
You are a Gem :) Seriously loving all your videos as they are truly informative, intellectual, precise for people of all age groups especially youth. Can't thank you enough for making people 'Financial Literate'. You are an inspiration to me!
You are so welcome!
@@AkshatZayn
when you
-dont do compulsive buying and
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
@@sonamdeshpande7281 its not bad idea when you have life time free credit cards.. in other cases you need to pay issuance and annual fees and this might be liability.
This is actually quite a brave video Akshat.
I also have always evaluated credit cards as a means of Corporate companies promoting consumerist culture. For the same reason I have never owned a credit card and will never own one in future.
An example in which I have seen my friends who where dead against watching crappy movies at the theatre after getting the credit card started going to theatres every month to watch crappy movies simply because they were offered discounts.
Also as you said in the video that we cannot compare our culture to that of the United States. In United States the social security is strong enough to take care of their people who are interested in consumerist culture.
I would again say Kudos for this brave video.
Well said and thanks :)
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
Great argument!
1. You think you are spending on needs but actually you have crossed the limits for example 1chps pack without a credit card but with one, I shall buy 3.
2. Unnecessary consumeristic, materialistic life which could be simpler.
3. One the name of discounts I shall buy higher than required leading to bad debts same as first but this is more focused towards non-essential things. I wanted entry-level phone but because I saw discounts I bought a mid-level or even high-level
Hey Akshat!
Being from a business family, my dad always disregarded the use of credit cards with all this same minimalist viewpoints and tbh it helped me alot to gain financial freedom.
Loved your video! Great content❤
Glad Dhruv :)
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
I have always advocated the point of not using credit cards. Thank you for putting it out there for everyone to understand the spiral of credits.
credit card usage is profitable to you as long as you use cc to buy things u required
NOT when u buy things just to use cc !!
this is damn important .
for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
Hey Akshat, this was a real eye-opener for me. I received a credit card just 3 months back, and since then my behaviour changed from being a "saving-oriented" person to a "spending-oriented" one. Thanks for the video, really enjoyed it!
Would love to know your journey to becoming a millionaire! :)
Will share :)
@@AkshatZayn Thank You! :)
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
@@sonamdeshpande7281 it's all about having a cute cat 🐈 in your hand which will scratch when you don't pay attention or no cat at all.
None never said it's bad but there's constant risk cuz of human nature if you can manage that it's good for you otherwise it's good for your credit card company
No bad at all😂😂😂😂😂
Your stuff is actually mentally stimulating man! I am just binge-watching it.
Me too actually I don't understand most of what he says as I'm illeterate in terms of finance.but somehow binge watching.
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
@@sonamdeshpande7281 The nature of credit being readily available can give you a false sense of affordability that can change our spending habits. It completely depends on the person's spending habits and financial awareness. There is a reason why the interest rates on cc are so high and missed payments affect the credit score drastically.
@@gulammohiddin5747
if we want to enjoy some benefits, it's okay to keep "auto debit " option ON ., so that bill payment is not delayed .
how would you feel when u do shopping of 20,000 in a Mall , bill counter displays 5% off with HDFC credit cards and u don't have a cc to avail the offer?!!
@@sonamdeshpande7281 Did you watch the video? He explains about this exact thing. You can bargain and get the same discount w/o cc. Well thats how you can get things done in India. In countries like US you rarely see anyone haggling for price.
That's why I always pay my bill as soon as I purchase anything via a credit card. Thus it exhibits Debit card like behaviour, restricting me from overspending, and gives me extra rewards as well. Also, my credit card has zero fees (be it annual or sign up). So its a win for me!
what card is that?
I really don't see why people would ever hate this! You have shown us the way towards being a 'rational consumer' and shown the ground reality!
I'm glad :)
Because most of those people are CONSUMERS and hate to be made look in the mirror.
#HappyMinimalist
@@anewlife5846 or may be they are more disiplined and doesnt end up buying something that they cannot afford
Hi Akshat, I totally agree with you. And I like your quote "Money is more about psychology". Let me tell you a story about credit cards. Earlier, when I got my first credit card, I use to buy vegetables, petrol, or using every time where I can find a swipe machine. I got lots of rewards points. Here is the trick of credit cards. So, I had 50000rs spends on credit card and I have 1 Lac in my account. In the back of my mind, I always thought I have lots of money and which leads me to buy more unnecessary stuff. And in last, I was the loser. So I stopped using credit cards after that.
Thanks for the video, I'm 31 now, i keep getting calls for Credit card, after watching your video, i have got a clear picture, simplicity is the best way of being Financially free,
"If you buy things you don't need, soon you will have to sell the things you don't need".
Warren Buffett.
Valid points it comes down to personal habits and one's self restrain .
There are very few people who genuinely give the right direction.Thanks a lot Akshat.
Unbiased, eye-opening and insightful!
Thank you :)
I
L
First-ever honest videos on credit cards. Hats off to you.
Really just a couple of days back I had same conversation with my mom and she was also saying same thing that simplicity is best way of living debt and tension free. Kudos to you Akshat keep the good work. Wish you more success.👍
Love that!
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
Last time i saw your channel it was 23k... now 43k ...... congratulations...
Adding value to our lives👌👌
As a 22 year old just starting out on her financial journey, this video is very helpful! Please come out with some videos for financial tips for young people like me, I would love to hear your suggestions on financial well being in your early 20s. 😊
I don't think this video will get dislikes just because you have put forward facts & analysis which enable people to deduce the utility and non-utility of credit cards themselves rather than blindly trusting a straightforward statement of not owning a credit card. Thanks a lot for your insights!
Point to be noted:
Most of the debit card (with 500+ annual maintenance charge) do provide free launge acess.
Food is free in airport launge.
You might go well fed, but it's mostly cheap to take connecting flights with 5-6hrs difference. In this case, it's definitely good to go to launge.
Last quote was lit!!
Great video!
You sound and look like such a simple positive person. I like it.
I appreciate that!
@@AkshatZayn Are you into crypto as well?
The issue is not in credit card.Its how you use it.But rather the most important thing is it affects our behaviour,our psychology.
And particularly this video I found out that the best video because it not only talks about pros and cons but more important our behaviour,our psychology. And I am convinced that for me using credit card will take my mental peace away. But here the exciting for me instead of taking credit card I would buy shares of credit card companies, because of the people who support other side of argument, because consumption through credit card will increase.
I stopped using credit card long back . I agree with you 100%
The clarity was impeccable! Thanks Akshat...
In the meanwhile, I noticed that channel is growing super crazy.
Hello Akshat
You are to the point. I feel credit card changes our spending behaviour very much. Most of the time we end up spending on unwanted stuffs. To reduce the burden, we will accept the emi conversation offered to us. When we take a pause on a later date and look back, we realise how much extra we have paid wherein on the first place the expense itself was unwanted.
Nice video. But its important to understand that it is addressed to general public. the 999 out of 1000 people. Answering at question at 10:31. Who pays for credit card conveniences? Credit card companies rely on you to use these conveniences to a point beyond what you can afford. such that you have monthly payments at high interest rates. However this is a double edged sword for the credit card company as well. There are those people as you said, one in a thousand, who spend using credit cards, to get benefits like reward points, insurance, risk free safe spending, availability of customer care etc. These are amazing benefits if you make your payments on time. A basic rule to follow is to have cash in bank at least as much as your credit limit, and then credit cards no longer attract unnecessary purchases, since you already have to money to pay for what you would have otherwise bought using credit cards.
Secondly, Credit card in the US are needed to build credit. They arent in India. In the US if you dont have any credit, it is not considered a good thing. Note that having credit doesnt mean having loan. Having credit means having credibility that the banks would give you a loan if you wanted one. To build this credit, you need to have credit cards. the more the better.
Exactly, can't believe this guy is from Bain.
What a serendipitous blessing that I found your channel 🙏
"Money is more about psychology than finance itself". 💯 True. I will tell my own experience, in Jan 2021, I don't have any dues towards card's/loans,I thought I can save next month onwards from my salary but eventually by April I ended up with credit card dues of around 52k,I don't know how it became that much... it's all psychology...
Maybe your CC statement would help you identify how it became that much. You didn’t donate that money to the bank , you would have also consumed services or products in exchange. 🙏🏼 Being responsible.
Principal plus fine probably.
@@cadarsh80 agreed with you and with credit Cards we are tempting to spend, and also we have dam confidence on anyway it's going to pay after 40 to 50 day's na.
Akshat I totally agree with you. I don't support taking unnecessary debt in any aesthetically pleasing form, which is a slow poison, and like to stay away from spending uncontrollably. Investing correctly should be the way one should follow instead of fast credit which may sometimes be difficult to pay. Great video man.
Thank you so much for listening to my suggestion. Thoroughly enjoyed watching this one! 😀
Edit: Can’t speak for all but atleast I am with you against this billion dollar industry after watching the video :)
Haha thanks :)
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
The argument you put here is the exact argument I used to make. Now I just forward this video instead of arguing. Thanks for saving my time 😅
I hold 6 diff. credit cards, and use them very wisely. I know it’s playing with fire.
Still I AGREE WITH YOU.
I totally agree with this. Using credit cards leads to bad financial discipline and creates a vicious cycle of bad fund management.
Thanks for taking this up!
Actually one big advantage of credit card is in case of a fraud you will not lose money directly from bank account, which is what happens if a debit card is affected by fraud. While paying credit card bill you can alert customer care about fraudulent transactions hence can avoid paying for that transaction in the bill. So that amount that was affected by fraud will be safe in your account
Thanks for your comment,👆
Make sure you reach out ⤴️
for information and advice, I have a new investment plan on crypto investment📩
You hit the nail on the head. I too don't like credit cards. But given how lawless this country is, having a credit card protects your bank account from fraud. Banks really don't care if your account has been hacked and all your life savings stolen. A credit card provide at least one more layer between scamsters and your money. Ironically the best point has the least amount of likes.
Hello Akshat,thank you for making and sharing a very lucid and powerful video.I have been making the exact same arguments about why I don’t own a credit card despite coming from a financial and banking career background.
I have been having losing arguments with some of my juniors who are earning 30-40k and buying an iPhone on EMIs ,because I don’t seem to understand the ‘social’ requirement of having an iPhone and other consumer goods!
Best wishes and keep making these videos. Your child will surely be proud of you in the future.
Moral of the story, Earn First and then claim!
Thanks Anirudh :)
To the point Akshat. Very well explained. Even I'm someone who has fallen to these credit card traps in the past and have paid huge interests, even more than the principal amount. I'm also of the same view that it's best to avoid using a credit card. I see many people having credit card debts simply falling to traps of minimum credit card payments.
Amazing video Akshat!
though I own a credit card, I believe it is in my nature to not indulge in frivolous spends. I think it is very important to keep in my mind that you need to repay the credit card money in a month. As you rightly said, its all about the psychology!
However, I would like to point that card companies make their money mostly from the retailers. People pay the price only if they are revolvers or are paying annual membership fees (which can very easily be reversed nowadays).
Keep up the good work! :)
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
This is so true, people don't understand that credit card loans are the most expensive loans out there which charges them somewhere around 35-40% interest rate per annum, but just because of some small lucrative offers by the credit card companies people end up neglecting this big loss.
Hii akshat, vegetable example in the video is an eye-opening fact. I Loved it.
Thank you so much 😀
Please put time stamp, I missed it
Thanks for bringing out of box informative stuffs in your every video.
Really liked the statement "Simplicity is the best way of being financially free"- Most applicable truth to the youth living on cities in current era.
I want to have credit card but banks don’t give it to me... I think they cares to me more😅😅
I am 19. Yesterday I got one credit card from icici bank.
@@jaybose5110 how?
Are you earning??
Bank ne rehem kar diya
SAME HERE BROTHER
@@jaybose5110 how?
Life saver of a video. I was about to get a credit card but then thought of hearing the counter arguments.
Thanks Akshat Sir.
Stumbled upon your videos oneday and dont regret a second of it 👍🏻
Glad to hear it!
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
Thank you. This argument of having credit card or not has been there for a long period in my family. I have shared this video to all my family members.
Thank you.
Credit card is trap for most of the people, only few utilities it properly.
I have not bought any CC in my 8 years of professional career and will not buy any in future too.
Thanks Akshat for your efforts.
Great point!
Rightly said. My teacher also said not to use credit card. But I was in a dilemma, as there were numerous famous youtubers who encourages to get a credit card. Now after watching your video, my dilemma is solved. I will not use redit card from now on.
Hello Akshat, kudos to all your efforts and time to research and convey some insightful thoughts in a simplified manner.
Look forward to more such insightful videos👍🏻
Thanks a ton
credit card usage is profitable to you as long as you use cc to buy things u required
NOT when u buy things just to use cc !!
this is damn important .
for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
So I watched your video today, I would like to show some Pros and Cons of using credit card, (I'm not against your views nor in support of credit card company) -
Cons -
1. If not used properly you can be in huge debt.
2. They lure you to buy goods beyond ur reach ( expensive) by giving unbelievable discounts.
3. You buy more number of products against what actually needed.
Pros -
1. It gives you benefits like lounge access ( rather what you said in your video, lounge access means food for ₹2, in which you can eat anything and not paying any extra amount, the way you mentioned is very different).
2. Help to pay bills very conveniently.
3. You get no cost emi ( again a arguable points)
4. Save us from frauds by retailers.
5. Provide insurance........and many more.
One Point Summary - if you know how to spend and where to spend wisely and pay your bills on time then credit card is boon(good) or else it's a curse(bad).
I have seen this, I use credit card and have savings too but on the other hand my friend is in debt of lakhs of rupees.
Hey Akshat!
This video was great and with the habit of consuming powerful content from you i'd request you to please make a video on the best platform to upskill oneself online..Thank you
Totally agree with your arguments Akshat. I have not had a credit card in my life and it hasn’t affected me in any way. If you save well and invest wisely then you are sorted
All are perfectly agreeable arguments- Hands Down! Thank you :)
Glad :)
Akshat, wonderful insightful video !!
Agree with you totally.
Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need, and the things you own, end up owning you
@albion you forgot the first rule
this is so true. I regularly track my expense and have seeen the expense rise with credit card as it gives the false hope that you have money in hand.
Great Video!!!
I agree with every point.
I feel that "The best way to manage your Credit Card bill is not to have one."😄
Absolutely!! :)
Everyone finance youtuber says how to use it correctly but do not say to avoid it!!!!!! Salute to you man....
Sir I believe that if one treats his Credit Card as his Debit Card linked to his Savings A/c then it automatically solves all the problems related to debt and overspending. Also side by side that person can avail cashbacks, discounts and coupons wisely to get benefited by them.
Appreciate your feedback 🔼
What'sap me with the number showing above for consultation and more profitable updates..
Best one akshay , I was using credit card for 20 years but discontinued since last one year, even though I was paying bill to bill , I feel better life without credit card , u spend within ur means no over spending
This video reveals a lot about the credit card industry and their intention of driving consumerist culture to make insane profits. My friends also give the Airport lounge logic of using the credit cards. The credit card companies are so conniving that they subconsciously make us want to spend more. Thanks and lots of respect for making this video Akshat.
Thank you Ravi :)
credit card usage is profitable to you as long as you use cc to buy things u required
NOT when u buy things just to use cc !!
this is damn important .
for example,.. when I buy some items worth of 10,000 in a Mall and bill counter displays 5% CB with CC then inspite of having 10K cash , i prefer to use cc .
Yes as you said its a psychological thing, actually credit cards not having that much power to hurt your finance, instead its very good if you have proper mindset to spend wisely and pay the credit bills on time (I have chosen to pay it through auto debt mode so no need to worry about that also). If you use credit cards wisely(use it just like your debt card and make normal purchase only simple as that) its having lot of benefits like offers, cashbacks etc and actually it helps you to build a good financial discipline as well.
Hey Akshat, here's my theory about how CC companies make money. They actually profit off a user who misses their payments but has the potential to pay. Someone who never misses a payment schedule or someone who can't pay up at all are both loss making entities for them.
I think that's why they lure you towards more spends so that when the user starts bordering on their "extra" purchases with essential spends like rent, groceries, investments, etc they will miss out on payments but not entirely lose their ability to pay.
Am I close?
(A bit unsure because I don't have any data on this)
Their main income is not from interest. It is the commission that they get from merchants when u swipe you card everytime.
cc company only give 97-98% to merchants (2-3% profit monthly)
@@143kiruba correct. They also avail this facility in spite of charges coz it saves them from carrying huge cash every day to deposit in bank and long waiting time. Money goes directly in bank. So its the vendor who shares a part of his profit for the convenience and time saving he gets.
Thanks Akshat. The simplicity with which you explain a topic is great! Look forward to more such awareness sessions..
Hey akshat pls do a qna abt yourself as I want to take inspiration from the studies you have done and how you have such a nice nature
Will do :)
Indeed! Would love a QnA session 😊
Yup will be great
@@AkshatZayn yes yes please 🙏🏻
Yes. A detailed video on your personal journey would be great.
This video earned my subscription ❤️
Your content is really insightful. Can you please make a video on tax saving strategies
Yup, will do :)
I agree with you Akshat unnecessary "faux" benefits and moreover, some bank managers even harass you to take their platinum credit cards and stuff
I strongly support the points you made here
Economic Aspect is Solidly Drafted
You are absolutely right
I have a history of using credit card for the last 17 yrs. I realised the same points you mentioned. Then i gradually started closing one after the other. I used as many as 5 cards. I closed sbi, icici, american express. I even closed hdfc but because to pay some online fee for my son exams at jee, engineering colleges i again started using hdfc., but very less out standing. The points you mentioned were really correct, credit history, cibil score are points to be very important but not at our risk. Emergency fund, some savings should be there. Spend from income but not from credit
Thank you, your video just confirmed the reasons for which I don't take credit cards.
And if someone is minimalist and manages their finances well, they don't need any credit card.
And you have some great content. ✨
The last point solved my doubt!
Brilliant content!
Thank you so much Akshat for such great content.
The amount of informative opinion you bring on UA-cam is immense and it seriously gives many of us a peek into the something very important one should do in life
I like your way of speaking, it is easy to understand for people who have normal knowledge at English pls keep continue in this way
*NOBODY BECOMES MILLIONAIRE OR A BILLIONAIRE'S BY WORKING FOR OTHERS AND DEPENDING ON THEM, GOOD INVESTMENT BRING MILLIONS OF DOLLARS, AND CONSISTENCY BRING BILLIONS, THE MARKET IS ALL ABOUT BITCOIN AT THE MOMENT NOW.,*
You're right ma,
That is why I had to start forex trading
2months ago and now am making benefits from it,
Thanks for introducing me to Sam Justin.
my first investment with Sam Justin gave me profits
of over $44,000 US dollar,
And I can't say he's the most sincere
broker I have known.
O' Yes I'm a living testimony of Sam Justin
I have two credit cards and always keep tape on what i am spending , i never missed a credit card bill. From this i love the connecpt on emergency funds , keep tape on your spending habits and how you can be financially stable by following financial discipline. Thanks Akshat
While I totally agree with most of your points, at the same time I feel if a financially sound person uses credit cards with appropriate behavior, it won't harm either. It's true that the credit card industry is designed to exploit our consumerist behavior, we can game them too by being a Lil bit more careful about how we spend. But then again, it is very easy to get lost in the marketing tactics. Thanks for calling out all these, we really need to know this. It would be really helpful if you could create a video around tax planning for youngsters, which is unbiased like this.
I second this. Request for a smart tax planning video.
Hey you speak very elegantly and politely, really liked how you speak. Subscribed.
Thank you Abhishek :)
"Never spend the money that you don't have." - My wise old grandpa who never used a credit card. 😁
Grandpa ke jamane mein kon credit card use krta tha bhai?😄 A very few people I guess!
@@MegaRamesh1982 the point being if you don't have the money, don't spend it which is exactly what the credit card companies want you to do. 😀
@@AJK666007 It's not you don't have the money. It just helps consolidates all month's expenses, and I just have to pay once in a month for which the money and emergency fund is always there in the bank account. Credit card isn't free money. As long as you only spend what you have in bank balance. Pay timely and get various benefits.
@@ashishIMpro as long as you have the discipline and know what you are doing it's all good. Problem however start when you slip up on one payment or go overboard with your spending. For me credit card is still borrowed money no matter what and this is the very reason why I never had one and will probably never get one going forward.
Having said that, Im missing out on certain benefits like you mentioned. However I'm ok with that as my debit card does the job for me and I don't have to think about the payments once done.
Makes lot of sense truly. Well done. Though I have a credit card but the pointers that you have raised are correct.
This is a great video l have ever seen in my life,we want more such kind of behaviour oriented video from you
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
Your video will definitely break the internet one day, not sure if that video is going to be this one or one that'll come in future.
I am already a fan. Good Luck.
Can't same arguments be made against debit cards as well? Especially for the ones having good sums in bank account?
Ease of payment comes from debit card and upi as well.
I understand for younger ones with less savings it really shifts the mindset towards easy spending, but is that true for someone in late 30s as well?
I believe credit cards is a took like any other tool, you can hurt yourself with it if you don't know how to use it.
Completely agree. I use credit card regularly and pay 100% every month..
You said it right. Be it credit card or debit card, financial discipline is all that matters.
Actually debit card have no limits (in some sense) but credit card have.😀
I support you. I stopped using it, but then was carried away. I will stop using them again. Thanks for sharing such great content.
Definitely its retailers who pay 2% charge on every transaction.
You will pay that even if you don't use a credit card
Fully accept your views
I stopped using plastic money , in my very start of my career, after failing Bill payment, and credit card company charged very heavily
Now very happy with debit card
If you have money spend or otherwise, sit tightly at home
This video changed my perspective on credit. Thank you for putting this video out. Unbelievably simple and important.
when you
-dont do compulsive buying
- pay cc bill on time
then, how exactly you are at loss ?? why using card is bad idea , tell me.
Loved the content...I hav 3 credit card and I use them like gold ... however most people may not....u have my 200% in this venture and thought process....keep going...