Many people are forced to pay using a credit card, when they incur unexpected costs such as car repairs and large medical costs. Things like this can happen, because they don’t have enough savings or emergency funds to meet unexpected expenses.
Having an emergency fund can meet your cash needs when things are urgent and avoid yourself using a credit card.
Buy Needs or Needs That You Can Pay
The next mistake that many people do is to buy things they cannot afford.
Avoid swollen credit card debt by buying various items that you can afford. Even better if you can afford to pay with cash and don’t need to use a credit card.
Don’t Miss Credit Card Payments
Paying credit card debt and not missing out on payments is one of the best ways to avoid future debt piles.
Be aware, when you miss a payment, the payment that must be paid in the following month will be much higher. This is because there is a system of interest rates and late fees that must be paid.
Pay Credit Card Debt in Full Every Month
The next wise way to use a credit card is to not avoid responsibility. You can make credit card payments in full every month with the aim of avoiding the interest that continues to swell when you delay payment.
In order for you to be able to implement this method, the thing to do is to use a credit card to shop for what you can afford to pay each month.
Know When Something Happens That Doesn’t Work
Many people are stuck with credit card debt that is piling up because of their inability to identify when payment problems occur each month. If you are able to recognize the signs of a problem on a credit card, then you can avoid credit card debt that has accumulated. A sign that is very easy to recognize is when you are unable to pay all bills every month.
Evaluation of expenditures so far has been done so as not to get caught up in a debt problem that is not over. Thus, you can apply the wise method of using a credit card even better.
Don’t Pull Money Using a Credit Card!
Never once withdraw cash using a credit card that is owned, if you do not want to face problems in the future. It is better to withdraw the money that is truly owned in a savings account and in a bank account.
Credit cards are a tool that makes it easy for you to shop, not a facility to withdraw money that you don’t have.
Don’t Lend Your Credit Card
When you lend a credit card to another party, it means you no longer have control over the credit card. You also never know how the pattern of spending they will when using a loaned credit card.
The worst thing can happen, where you end up having to take responsibility for the credit card bills they incur.
Understand Credit Card Requirements
Each credit card has features and requirements that differ from one another. By understanding the various requirements that exist, then this can help you avoid excessive credit card debt.
Some things that are very important for you to understand are about how interest is applied to credit card accounts, when you will be charged additional fees, and when interest rates can increase.
Don’t Exaggerate Having a Credit Card
The more credit cards you have, the greater your chance for uncontrolled spending. Having a credit card that is useful to make it easy for you to shop can be applied to control uncontrolled spending. Instead of increasing the number of credit cards in your wallet, it’s better to increase the amount of money you have set aside to save or invest.
Investment is a wise way to grow the value of money in the future. Because, if you only save money in savings, the value will be increasingly eroded by rising inflation.
Koinfidence is a peer to peer lending investment instrument that offers a rate of return starting from 18% in a year. The capital that must be spent to start investing is also very minimal at only $ 100,000.
Well, the returns that will be obtained from investments in Koinfidence can be used to meet various financial goals in the future. For example, for children’s education costs, or the cost of a year-end vacation together with family.