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There are two sequential phases involved when you use your credit card: the first is the time interval between your usage of the credit card and the cut-off date for billing; the second is the time interval between the billing date and the payment due date.
The MasterCard “priceless” series of advertisements, however, try to con you into believing that only the first of these two phases exists. In this phase, the whole world is happy swiping MasterCard credit cards for airline tickets, taxis, hotels, amusement parks, dinners – the works. Though racking up really huge amounts in debt, everything’s hunk-dory and everyone’s smiling away to glory – including the person maniacally swiping his credit card.
The ads conveniently stop here. What isn’t shown is the second phase where you actually need to cough up that huge debt failing which you swim into into a perpetual miserable debt cycle.
Here’s one example from a recent MasterCard ad (published in the latest edition of Outlook Business):
flying out of the country on business: Rs 35,000
tucking your 3-year old into bed, like always: priceless
This is just Phase 1. The ad, if it were to continue, would probably have said:
waking up on the morning of the payment due date and realizing that you don’t have a dime: painful
But here’s one instance where you probably wouldn’t mind using your MasterCard!
And in an attempt to set its conscience right, MasterCard sponsors money4you.in – A Financial Education Initiative.
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.