Answer
These disadvantages include:high-interest rates, No cap on fees, easy to overspend, and minimum payment trap.
Work Step by Step
The disadvantage associated with the usage of credit card is as follows:
High-interest rates: The rate of interest charged on unpaid balances of credit card is generally quite high.
No cap on fees: there is no specific cap on fees in case of usage of credit card. There might be certain other fees as well along with the main fee being charged for the use of credit card facility. Card issuers may increase the fees at any time they like. That’s why it is advised to read the credit card before applying for the same.
Easy to overspend: A person can spend more than his/ her actual spending capacity through the usage of a credit card. He/she may purchase those things which he/ she may not want or require. As a result, the user may create an additional obligation to pay the credit card bills.
Minimum payment trap: there are certain card issuers who require their credit card users to make a required amount of payment on a specific time duration basis. These payments may include the interest charges as well.
