Using Credit Cards Wisely

To obtain current credit cards is quite easy. Currently, many credit card sales person from various banks in shopping malls promotion to find new customers. Original credit card used appropriately will greatly help us. BUT ... if used haphazardly will certainly make us entangled in the bill that day more akin to swell the amount.

In this article, I will invite you to learn how to use credit cards properly and free from the shackles of the bill. Here goes some way that can save us from the bondage of credit cards.

Do not use credit as a loan.

Credit cards have two opposite sides, which side is on your side very depend from the way you use it. If you forget to pay bills, then you will 'enjoy' high-interest loans. Even if you pay the minimum value required by the credit card issuing bank, then your bill will be paid off in the time period long enough and with very high interest rates (above 30% per year, depending on the interest rate set by the issuing bank). On the other hand, if you always pay your bills on time, credit cards are a safe and convenient instrument to use to shop or pay your various needs.

Use credit cards instead of cash, rather than as loans with high interest.

Spend according to your ability to pay, Do not use credit cards as an instrument to finance a lifestyle that does not match your bag. If you can not pay all your bills each month, meaning you have to use this facility excessively.

Here are some things that can be used as a benchmark for credit card usage in accordance with your financial condition.

1. You have the same amount of money you spend.

Make sure you pay all your bills when you receive the invoice.

2. You can not pay the bills, but you must use your credit card.

If you can not afford to pay credit card bills, but at the same time you encounter a case of emergency, immediately arrange a financial plan so that you can pay off those bills.

3. Do not use credit cards for  shopping, that did not exist when the bill you receive. One way to reduce the use of credit cards is to not use it when your monthly shopping, eating in restaurants, or go have fun.

4. Create a financial plan.

Always write down your expenses.
Make use of your credit card limit in accordance with your financial plan.
Do not exceed the spending plan that has you stacking.
If you are not disciplined with the budget you set up, stay on your credit card at home.
Use only in times of emergency.

5. Pay all your bills each month.

One rule that must be obeyed by every user's credit card:

Pay all your bills every month.
If you can not be forced to pay the whole bill, pay most of it.
If you can only pay the minimum limit, because you will be heavily in debt with high interest.
Stop using credit cards until all your bills paid off.

6. Pay on time.

Always pay your bills on time.
Payments through the payment will be subject to penalty and interest is high.

7. Only have one, or two credit cards.

You just need to have a credit card, have two credit cards, if your primary card is not accepted in certain places.
You can monitor its use, if you only have one or two cards.
Do not use a single card to cover up another card bills.

8. As much as possible do not use a cash advance facility.

If you need money right away, do not take the credit card, use your savings.
Cash advance facility provided by the credit card issuer will only overload your bill with a super high interest rates.

9. Keep proof of your transaction.

Always keep receipts of transactions using your credit card until you receive your monthly bill.
Match the numbers on sheets of invoice with a receipt transaction that you save.
Immediately report discrepancies on invoice number, if you find it odd.

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