Credit Abejar

Gerwin C.
Abejar Activity: WATCH, REACT, APPLY: The Credit Card Faults,

Schemes, Scams, and Extinguishment Related Videos
After watching and reading those videos and articles, I came up with the idea that it was
about debt. So the central message common to all videos that are linked to our activity is all
about how you can reduce or pay off your debts and what are the advantages and disadvantages
of being a credit card holder. Basically credit cards are important in a way that you can have the
ability to pay for items and necessities when you don’t have the cash or money, and it can also be
useful in a way to manage your finances. The same goes for loans when you run out of money
and you don’t have enough money to pay for your tuition or starting a business, you can borrow
some money by loaning. But loans are actually increasing our liability that can affect ourselves
in the future when you experience money shortages. In credit cards, you will have a liability to
pay for your debts from using credit cards, and if you don’t pay it before the due date it will have
a penalty that can increase your liability.
Having a credit card has its advantages and disadvantages. As long as you use
them properly, you will have no problems in the future. Having a credit card has it advantage in a
way that you will buy now and pay it later, so basically it is more convenient option to use a
credit card, as it can let you buy a product or service but not pay it immediately until you get
your salary. And also the advantage of having a credit card is getting benefits and rewards,
because there are some credit card companies comes with varying benefits and incentives that
can be useful for you. And it also has a disadvantage when using a credit card. The main risk of
using a credit card is that if you used it before to buy something and you aren’t pay back what
you borrow you maybe in debt. Because there some credit card companies that can charge high
rates of interest and this can build up quickly if you don’t pay the balances that you made. Credit
cards can also come with fees and charges if you don’t meet your repayments or you exceed your
credit limit, you need to be careful with how you use them.
The same goes for having loans; there are things to be considered before applying
for loans so that you will not be in debt in the future. Before applying for a loan you need to be
futuristic, you need to think on how you will plan to pay it off in case the date of maturity comes.
Because there are effects and consequences of being in debt. Being not able to pay your liability
or obligations can lead to losing your things, like for example your car or maybe your house can
be foreclosed in exchange for your debt. That is why you need to think before applying for loans
or in other words you must think before you go in debt.
In applying these scenarios in our lessons in obligations and contracts, in the
modes of extinguishing an obligation. According to the Article 1232. Payment means consists in
the delivery of a sum of money or a thing, or doing a thing or not doing something. So having an
obligation from buying something using a credit card, you need to be settled it by paying off the
balances you made from the credit card. Based on the definition of payment in Art. 1232,
compliance of an obligation to give, to do or not to do. It does not only mean fulfillment of
monetary obligation. It embraces all kinds of performance or compliance, regardless of the
manner; whether real or personal obligations. And the obligations of the debtor which is the
credit card holder or someone who borrow the money from loan is to pay it before its due date,
and the right of the creditor is to demand the fulfillment of the obligations of the debtor for using
Gerwin C. Abejar Activity: WATCH, REACT, APPLY: The Credit Card Faults,
Schemes, Scams, and Extinguishment Related Videos
his credit card for something they need or borrowing money for something.
Based on the Article 1253, Interest first before the principal. In payment of an
obligation producing interest, when the amount being is paid is not sufficient to cover the
principal and interest due, the amount paid must apply first to the interest, the excess if owing,
shall be applied to the principal obligation. The credit card is considered as a loan that you’re
actually paying the interest also, if you cannot pay the full amount of the loan because every
month you only paying for its minimum but you’re not paying the principal, and then your debt
will never run out. The reason is that you’re only paying its interest but not the principal amount.
This is the downside of having a credit card because your debt continues to increase and this is
the tactics of the credit card companies that people don’t know. So people have to be diligent
about using credit card and not just using it, they have to think about what happens before they
use and buying suddenly, if they can afford to pay it in the future.

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Gerwin C.

Abejar Activity: WATCH, REACT, APPLY: The Credit Card Faults,

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