7 Tips to Avoid Credit Card Debt

Currently in the big city, almost everyone has a credit card. Many people who could take advantage of a credit card, but it seems far more people are harmed by credit card. I was also one of the credit card users are still trying to discipline and remind yourself of how to use a credit card that is good as written in http://www.mycozycash.com/. Below are eight things that must be realized when we have a credit card, the credit card to provide benefits to you:

  1. Realize that the credit card is a loan, you have to pay (with interest). We are all aware of this, but the implementation is still a lot of shopping credit cards beyond their capabilities and also feels a little extra money from this credit card. Remember, the more use of credit cards in the beginning, the more affected your financial health in the future.
  2. The credit card interest was very high. Do not be fooled by words only 3% interest (interest on credit cards in Indonesia about 2.5 – 3.5%). The flower is the interest per month, a year is approximately 36% (12 * 3%). Compare this with the savings deposit which is only about 4-5% per year, before tax. Compare also the prolific bank lending has averaged 10-15%.
  3. When you pay using a credit card before the due next month.You are not charged interest at all. The best way is the credit card see it as a temporary buffer, take advantage of the use of credit cards as a means of transaction for practicality and promotions. But always pay off your credit card debt before maturity next month. The portions were not paid will start to accrue interest per month applicable at maturity thereafter.
  4. The minimum amount that must be paid each monthly due date is 10% of the total principal and interest there. If you get used to paying a minimum of 10%, you have been giving maximum benefit to the bank and the maximum loss on yourself.
  5. Payment late or less than the minimum required to cause you have a credit rating that is down and a bank registered in the system and subsequently registered. The longer you are in arrears, the worse your credit rating. It is difficult when in the future you need a loan from any bank (in Indonesia) for capital requirement / business operations, home loans, car, etc.This applies to any additional cards you have.
  6. Take advantage promo offer as long as you realize that the price offered reasonable. Some promos are often offered as eating pieces up to 50%, installment purchase up to 12 months with 0% interest, reward points, cash back sometimes provide advantages in saving your expenses.
  7. For security, when you try to transact observe how many times your card swiped and transactions online make sure the site is secure. Never give your credit card information (especially the three numbers on the back of the card).

So … be mindful when using your credit cards!