Revolving Debt and Credit CardsRevolving credit can seem very interesting insofar as:

– It is easy to use

Indeed, it is recharged according to the repayment of the money spent. The financing of expenditure is independent and free, without the need for new approaches to credit institutions.


– The revolving debt facility allows multiple transfers

In some cases, the subject is automatically used (within the limits of what is available) if the bank account of the borrower is discovered. A transfer is automatically executed to tap into the reserve and come meet the deficit of the main account.


In addition, the borrower can generally perform direct transfers of its revolving credit to his checking account to replenish cash or check to its revolving credit account enjoying a flow of money to reduce outstanding credit and lower monthly repayments.


– It is not affected and related to an expenditure

It can therefore be used to finance any type of property, without constraint.


– Monthly payments depend on the use of the reserve

The consumer can decide to puncture a sum more or less frequent in the reserve based on their needs and resources.

Indeed, interests cover only the amount used.


– The credit card allows greater autonomy

Indeed, in most cases, the map associated with this type of loan can not only pay in shops but it can also withdraw cash in ATMs.

In addition, it will generally be entitled to assistance and insurance services, including goods purchased with the card.


However, it also has disadvantages:


– The cost

The interest rate assigned to this credit is generally high and expenses are grafted easily (including fees, credit card?).


Indeed, the many advantages associated with this type of advance make it a little more expensive than a traditional personal loan.


– It can lead to a catastrophic situation for the consumer indebtedness


Indeed, this type of credit easily removes any notion of spending and can cause a person to make expenditures that would not have made ​​without revolving debt.


This adverse effect is obviously sought after by brands and credit companies but can lead the consumer to a situation of serious indebtedness.