The Credit Card Lifestyle
September 16, 2008
It may sound absurd to many of us but when we all get our hands on a credit card we are inviting nothing short of disaster. Well if it has not happened to you as yet, be patient, it only means that your turn has not yet come. Some men (and women) love to live their live through their plastic money – and many of them have at least 4 pr 5 in their wallets or purses. The fact of the matter is that at some point in time, if they are not careful, they are going to be in a serious debt trap. Read on how to avoid that seemingly inevitable trap.
Remember that the credit card companies make a lot of money from late payments they just hope your payments will be delayed do that they can slap you with a late payment fine. Avoid this by paying them through some method that can be documented, such as online transfer or cash payment over the counter. Dropping a check will just not suffice as they will not cash it (if it is your turn to be duped) they do this to thousands of their customers regularly.
Never opt to pay the minimum amount due. Many card companies will be more than glad if you repaid them just 5% of the bill value. Remember that you will be paying them over 300% in interest if you keep up the 5% payment and it will take you 15 years to pay up completely. So pay the maximum you can before you make another spend on the card.
Never keep more than one card this is a sure way of over spending and getting caught up in a debt trap, and never use the card to withdraw cash from an ATM because it attracts interest at the rate of 4% per month from the moment you withdraw the cash.
Apply for a card with a credit limit that is within your monthly salary. This will ensure that you don’t spend more than you can repay. Follow these simple rules and you will never get into a debt trap with the card company and your credit score will always work in your favor!
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