Credit card debt can be very depressing. It can also ruin your life if left unresolved. Using credit cards is something that you have to watch carefully. Otherwise, you may end up in debt which is not easy to resolve. The following are some mistakes that credit card holders normally commit:
Again, there is nothing wrong to apply for a credit card and use it for reasonable purchases but be very practical about incurring debt. Financial advisors say that the proper use of this card is the only way to stay away from debt. Use your credit card sensibly at all times.
If you are looking for free legal advice on your credit card problems call CCLSWA.ORG.AU by clicking on the link. Or head over to http://cclswa.org.au
- Making late payments is said to be the biggest blunder of consumers who own credit cards. Severe consequences include exorbitant interest charges, late fees and negative credit scores which can adversely affect you financial lives.
- The next serious mistake is to keep on paying the minimum balance. If you have a high balance and Annual Percentage Rate of 14 percent but you only pay the minimum every time the bill comes in, it may take you decades to reconcile your debt. Moreover, the interest rates will also increase considerably and the balance continues to swell. You cannot expect to be debt-free unless all your balances are settled.
- Paying hospitalization and related bills using your credit card is also an impractical move. You can always negotiate a convenient extended payment scheme with zero interest. There is really no need to use your card for medical purposes.
- Using the card for cash advances is an ill-advised move. Interest charges for cash advances are normally higher compared to daily purchases. In fact, the rates are fairly unreasonable. It would be better to approach a loan shark than opt for credit card advances.
- Avoid disregarding new offers from credit card firms. Special promos for credit card holders can mean reduction of interest rates or zero interests from one year to 18 months. These can save the consumer a lot of money that could have been channeled to interest charges.
- Permitting other people to ride on your card is also a big NO. It is not wrong to be a “Good Samaritan”. However, there are other ways of doing this but not through your personal credit card. In case your friend or co-worker fails to pay, you end up footing the bill for something that you never used or enjoyed.
Again, there is nothing wrong to apply for a credit card and use it for reasonable purchases but be very practical about incurring debt. Financial advisors say that the proper use of this card is the only way to stay away from debt. Use your credit card sensibly at all times.
If you are looking for free legal advice on your credit card problems call CCLSWA.ORG.AU by clicking on the link. Or head over to http://cclswa.org.au