How to Avoid Credit card Trap
Credit Card Trap
Its a ultimate convinient but complex loan Product. Vacation, big dinners or emergency may lure you to use Credit Cards but its not that simple Calculation. This 'swipe happy' product can add imense debt to your Life.
How to Avoid Credit card Trap
Be Responsible - know your Credit card first. There are range of Cards offering diffrent Interest Rates, Fees and Rewards. Always chose the right Card for you.
Nothing is Free - do you think Banks are fool to give you Free Credit? Many credit card gives upgrade to higher version Card with More Credit, More Rewards (More Traps) so be cautios dont take higher version card unless needed.
Fees on urgent cash - in case emergency u may consider to encash your Credit Card In ATM remember if you use credit card in ATM they charge Fees On same.
Remember the Paymemt date - Many people unable to pay debt on time and Game starts!
Interest rates on Credit Card is around 2.5 % to 3.5% (Yes 42% Annually)
and Interest is charged on entire amount payable (Can you Imagine?)
And Interest is charged from the date of purchase (What?)
And there is Late fees also charged (Hdfc bank charges around ₹500-700/-)
And if you unable to pay further all your Reward points get down to zero!
So congratulations your Doomed to Hell !
Make sure you pay the bill on time and not with minimum payment monthly.
Credit Card is a emergency not luxury -
I know Card look sexy, you might want to floant them in front of your friends but please remember Credit card are not proved very good Friend for people. They are made for emergency not luxury.
Conclusion- Do shopping when you have money, postponed your satisfactions and if you dont really require credit then do not take Credit Card at First place.
