Advantages and Disadvantages(Money Talk)

BANKS

Pros: It's the most traditional and safe way to deposit your paycheck or savings.In banks you have a lot of options.Whether you want a personal savings or checking account, trust fund, or business checking account, most major banks can provide all these services in one place.Also you can obtain personal loan or business loan if you need.

Cons: There are some drawbacks of banking system.Those drawbacks include that you have to pay interest if you borrow the money.Also if you aren't paying the credit card they can go after all your properties and if you are paying late you will be charged with a late fee.

CREDIT CARDS

Pros: They are super convenient,fast and safe to keep your money in.You just need to pull out your card,swipe it and the thing is yours.Credit cards are mostly used for online purchases.Its not possible to pay by cash over the Internet so Credit Cards are essential if you buy things online.The biggest pro about Credit Cards is that they give rewards for high usage such are airline tickets and other goods.You  generally get some points for each time you use a credit card.These points are accumulated and in the end you can buy something with those points.

Cons:  Credit Cards are dangerous for people who have less self control or are shopping freaks.It allows you to wrack up debt easily as you don’t need to apply for a loan.You can have multiple credit cards and carry huge debt.You can be stuck in a debt trap if your monthly earnings can’t cover the interest payments on your credit card debt.Many people get bankrupt and have their life destroyed through credit cards.

BEING RICH

Pros:Who doesn't want to be rich? First of all, you can enjoy a lot of things that money can buy,you don’t have to worry about matters related to money,about your living, for example: fear for losing a job, saving money to raise the child, etc.I think the biggest advantage of being rich is that you can travel the world and decide wherever you want to go to college to without needing to worry about tuition fees and payments.Also a big advantage of wealth is that you are able to give a lot to charities and help a lot of people.

Cons:However, being rich does have some disadvantages, perhaps when you’re rich, a lot of people will be jealous and envy you and that can bring a lot of risk on your life.You will most likely not have real friends because people these days may use you or strive for your weaknesses.

Possibly, you will also become materialistic.

As a matter of fact, things will get boring, since you can afford everything that money can pay, so you will participate on things that can entertain you, for example, risky things like gambling. That’s why there are people who get addicted to gambling.

HAVING A MORTGAGE

Pros:First of all having a mortgage makes the process of owning a home more affordable.For most people, buying a house is the biggest purchase you’ll ever make.A mortgage comes in handy to make the purchase affordable.With a mortgage, you are paying small amounts of money towards the house over many years.Since the payments towards the home are spread over years, the periodic payments are manageable and affordable.And a mortgage is the most cost effective way of borrowing.

Because a mortgage is secured against your property, interest rates tend to be lower than other forms of borrowing. With a mortgage, the lender has the security that if you are unable to repay the mortgage they can sell the property to pay back the mortgage.

Cons:Although mortgages are the most popular form of debt when you want to buy a house, they do come with some disadvantages:For example,the fees.In addition to mortgage interests, you are expected to pay other mortgage fees when getting a mortgage.These fees can be hefty.Also you pay back much more than you borrowed.Like any other loan, mortgage loans come with interest. At the end of the term, you’ll have paid the original loan amount plus accumulated interests.

PENSION SCHEMES

Pros:One of the most obvious advantages of pensions is that when you reach retirement, your pension plan will give you monthly payments for the rest of your life. It's like if you're still getting paid by the company even though you're no longer working.

Cons: But one of the disadvantages is if you run into a financial emergency, you can't count on the pension money to bail you out.That money stays with the employer until you actually retire.The only way to get it early is if you quit.

DIRECT DEBIT

Pros: When it comes to the advantages of paying by direct debit, convenience is always at the top of the list.It is quick and easy way to pay your bills: there are no envelopes to post or checks to write. There are also no worries about overlooking a bill and later being assessed late fees due to a delayed payment.You can simply just forget about it,except for the hole in your bank account that is a constant reminder.

Cons: One of the cons has to do with losing control of the process.While the need to write checks is eliminated, that does not mean the direct debit payments do not need to be tracked. By not doing so could leave a checking account in chaos. In addition, making changes to direct debit payments can be very difficult. For example, if payment dates need to be changed,the time and effort needed to do so can sometimes be overwhelming.