Is your credit card a boon or bane? According to Credit Card Debt Advice from the experts, the answer to this question is determined by the usage of the card by the card holders. When used wisely, the card seems to be a boon and when used with ignorance ii is a bane. Several websites like consumerfinance.gov endorse the same answer to the credit card holders across the globe.
How To Use The Credit Card Smartly?
Using the credit card with smartness will undoubtedly yield many benefits. Hence you need to know some of the tricks while using your credit card. Read on to know some valuable tips listed below:
· Avoid using the card for small purchases and use cash instead.
· Always know your card limit before using your credit card.
· Track your credit card usage pattern and have it on your computer.
· Never forget your monthly payment due dates. Mark it in your calendar or save in mobile phone.
· Keep a separate file for your credit card bills and purchase bills and counter check them with the card invoices sent to you. Call the card company in case of any discrepancy found. Many do not follow this habit. Be different and stay alert.
· Know your credit card payment cycle and accordingly make your card usage. By this effort, you can enjoy the maximum credit or grace period.
· More importantly, avoid impulsive purchases through your credit card. The majority of the people have become victims to such purchases and faced credit card debt.
· Look for the card company that offers zero percent interest rate. Check the upfront fees before choosing such companies.
Offering Minimum Payment
Most of the credit card companies offer a minimum payment option for the users while sending their monthly bills. In a business sense it looks like an attraction, but in the financial term, such option will push you into the dangerous credit card debt. Paying minimum balance amount is a never ending process. Such payment makes you pay little higher than the interest each month and hence your debt will reduce in a very slow manner. It is advisable always to pay more than the minimum amount and get away from the credit card debt trap.
Avoid Taking Cash Through Credit Card
Smart card holders do not withdraw cash by using their credit cards since it attracts high-interest rate. When added to the minimum balance, such cash withdrawals will add up your debt to a great extent. Use such facility only during emergencies and pay the full money when you get the bill next month.
Treat Credit Card As Your Virtual Money Lender
Treat the plastic money as your neighbouring money lender. In a virtual sense, it is the truth behind every credit card. Credit card companies are lending you money in a more organised way in order to be in the market forever. Most companies thrive on the ignorance of the credit card holders, who later become a liability to these firms. Smart people, who are money conscious play the game of credit card wisely and make use of the cards for the sake of convenience.