Are you a credit card user? This card magic is intended to Facilitate its users to online and offline shop, eat in restaurants, travel, music to buy concert tickets, and other transactions. Credit cards can also help you with your daily financial support.
If you are broke before the end of the month, you can use a credit card to make ends meet. Just swipe, financial problems are resolved quickly. With a credit card, you also don’t need to bother always carrying large amounts of cash.
But like a double-edged knife, a credit card can instantly be a disaster if you do not use it wisely. Swipe there, swipe here, shopping without paying attention to the risks. Finally, without realizing it, you have spent too much money, not comparable to your financial condition.
As a result you have to bear the mounting debt. As a consequence, you are required to repay credit card bills every month, including interest. Pay a little late, will know the cost of the fine. If overdue and until bad credit occurs, the debt collector is ready to act to collect arrears.
If you do not want to experience something like that, you must be smart to take advantage of the various benefits of a credit card. Do not be complacent that makes your finances chaotic.
Don’t Pay Bill in Minimum Amount
One of the facilities provided by credit card issuing banks is minimum bill payment. That is, you do not have to pay off the bill in full, but can pay in installments with a minimum nominal as determined by the bank. But this is precisely what can become a big problem later on. Remember, in paying credit card installments, interest will be charged. If the installments with a minimum amount, the automatic period of time until the bill is paid off is long, while interest continues to accumulate.
The advice, it’s better if you immediately pay off the credit card debt. Or at the very least, don’t choose the minimum payment option. Although the costs must be greater, but in addition to being free from increasingly burdensome interest expenses, you can live more peacefully because you have no dependents.
In order to pay off credit card debt directly, of course you have to start managing finances with a larger portion of the budget for installment payments. You also have to live frugally, stop using a credit card first until the debt is paid off, and shop according to your needs not wants.
2. Pay Installments Faster than the Due Date
One cause of the swelling of credit card debt is payment past due date. Don’t let this happen to you. If salaries have fallen or have money, while not yet due, pay the bills immediately. Do not delay any longer. Moreover, pay when the date is tight.
This is very important so that you avoid fines, where the amount of the fines based on Cream Bank regulations can reach $ 150 thousand. At present, credit card bill payments can be made through mobile banking or internet banking facilities for 24 hours, so there is no reason to delay paying off credit card bills. It takes discipline and consistency from you in payment of credit card installments.
3. Avoid Transactions Exceeding Credit Card Limits
Usually the issuing bank provides a loan limit or limit in accordance with the prospective user’s salary. Try not to exceed this limit. For example, your credit card limit is $ 10 million, so don’t make a transaction exceed the nominal value. This is important to note because there are fines that will be imposed for over limit credit cards.
Credit Cards Are Not Scary Origin …
It’s true, a credit card is like a double-edged knife. But the term can be real, if you are not smart and wise in using a credit card. This often happens to many users. Credit card debts pile up and eventually become depressed, to the point of stress. However, for those who are good at managing finances and managing credit cards, you will avoid credit card debt bondage and still benefit from the card. Now the decision is yours, which type of user you want to be. May be useful.