Credit cards are the easiest and most practical way of payment because of their cashless nature.
However, the use of a credit card requires planning and the user must understand where and when you should use a credit card. The following are some things that can help you to understand the times when you should use a credit card and when not to.
- Avoid using a credit card when buying high-interest items and avoid the urge to shop impulsively or without planning.
- Don't be too tempted by credit card promos or big price discounts. Don't let your temporary pleasures end up weighing you down.
- Plan all the transactions you will make if you want to use a credit card. If you do have cash, it's a good idea to just use your cash.
- Understand all the hidden fees that banks provide when you use your credit card abroad. Most banks can give you an interest rate of 1% to 2% every time you transact using a credit card abroad.
- Try leaving your credit card at home if you are walking to shopping or to the mall. Save your credit card so you don't get tempted to buy and work on things you don't need using a credit card.
- Keep your credit card in places where you have a hard time getting there. Store it in places where you can hardly find it. In essence, keep your credit card out of your sight.
- Calculate your monthly interest so you can start calculating how to pay off your groceries as soon as you buy the items you want using a credit card.
- Be disciplined in using credit cards. Do not exceed the limit you already have and pay the installments and all your credit card bills on time.
- If indeed a credit card only charges you financially, it's a good idea to close your credit card.
Well, so, how? Did these tips help you? Shop with discipline and responsibility. Be careful when using a credit card so that you don't get entangled in accumulated bill debt.