Credit cards are very convenient in everyday life, so you can easily purchase products online and by telephone, and frees us from having to carry large sums of money to make purchases in stores. However, there is a potential dark side of plastic, with some unfortunate owners of the accounts of their depth and construction of the debt problem and concern.
This is obviously a situation that is best avoided, and when it is a bad idea to use your credit card can help you avoid trouble.
- Cash withdrawals at ATMs
Most ATMs in these days allow you to charge your credit card. This may seem an attractive option if you have no money at the end of the month, but it is a bad idea for two reasons. First ATM to withdraw an amount from a small percentage of the amount of withdrawal. This alone makes it an expensive way to get your hands on the money, but progress usually charge higher interest rates than purchases.
In addition, a system known as "the distribution of payments", payments that you first applied to your account your debt, lower interest rates to attract share. This means that when you buy participating debt, cash will sit in the background, will be charged a higher interest rate and get less.
- Credit Card Checks
Allows you to use your credit cards in situations where you normally can not, like paying bills by mail. However, the interest rate is higher, and higher output. This means that you should avoid for the same reasons above.
- Covering the cost of everyday bills
Pay your energy bill, for example, the use of your card easily and conveniently, but it's a good idea if you pay the debts on your next paycheck. If you use your card, because you can not afford to pay the bill, it is a clear sign that we should take a close look at your personal budget.
- Trade-sided impulse
Of course, we want to treat yourself from time to time, and I do not envy it. However, before handing your card, keep in mind that the interest paid during the month you need to repay the debt, your impulse to buy much more expensive than it seems. He is still worth it?
- To make payments on other debts
Credit cards are usually the cheapest type of credit available, so you never have cards for debt service, other, cheaper. The only exception is if you have an object balance transfer or 0% interest rate for several months or a low rate fixed.
As you can see, most of these tips just common sense, but after these rules gives the best chance to stay in control of your credit card debt and avoid the accumulation of unnecessary or excessive.