Credit Card Traps You Should Avoid

Credit Card Traps You Should Avoid

  • Repeated usage. What’s amazing with using credit cards is that you do not have to fill out forms over and over again. Thus, impulse buying through these are quite high. If you want to avoid this trap, leave the card behind and bring along a few cash to tide you over during the day.
  • Take note of cut offs and payment schedule. A cut off is the deadline set by card issuing company as a cap for credit recognition in a particular payment cycle. A schedule is the allowance given to card users to pay their dues and avoid paying additional surcharges. There is a gap in between; thus, your computed balance is different with the official balance. Don’t argue with regards to differences; instead, mind the deadlines to avoid penalties and sink further into credit pits.
  • Encourages spending habits. Some people have the wrong notion that it is a privilege to own a credit card and makes them cool to other people each time they use it. However, such incorrect notions and reasons are ways to fall into credit and debt traps for which you might need to seek the help of title loan companies for when payment due dates come.
  • Too much dependence. It is already stressful to own one credit card, how much more if you have more than two of these? Monitoring and paying your dues can add more stress as card companies have different policies and procedures; thus, you have several things to consider when monitoring your spending. There is nothing wrong with maintaining more than one; provided you can pay it and you do not rely on it for your daily survival.
  • Availing of promos. Do not make the mistake of availing promo offers especially if you do not need the items. For example, why avail of one day sale on grocery items when your cupboards and refrigerators are still loaded with groceries and food items that will last for more than a week? Why buy additional pair of shoes when you still have one pair that you haven’t used yet?

 

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