Practically, I would fully advocate someone as WISE who never uses a credit card for hisher wants but needs. By doing this, he or she is not only contented but also avoids consequences of near future. As soon as you get a credit card, a credit account is created to rob money from your savings account at the back end, though you enjoy the credit limits and leverage the grace period at the front end. No matter how shrewd you are, if you use your credit card just as a substitute for money and for urgency, you are failing. Any loan or credit is better than a credit card loan. My sincere recommendation for all of you would be to choose Cash instead of Cards for all the urgencies. The reason is that things that are categorized as ‘Urgency’ by us, need not necessarily be a ‘Need’. Things that are required for your survival are your ‘Needs’, but things that are required for your living is ‘Wants’. Booking tickets for a trip could be ‘urgency’ for you. While, saving money for your kid’s education is your need. Greed could be fun, but it brings ruins to your household.
Here are the three handy wise hacks you should never miss out from a credit card and also three threats that you should be careful about credit card that can pay a surprise visit to choke you down when not used wisely.
- Go for cash back credit cards and ecommerce sites, Amazon, Amex, capital one, Bank of America, Paytm , offers best cash back cards and cash back offers for High-End products such as Apple I-phones and gadgets. Use EMI options, reward points, reward travel bookings from your credit card.
- Use one credit card and go for lower limits, so that you can naturally keep the expenses under control.
- One- Fifth rule. Have a rule fixed in your mind to have maximum of only 1/5th of your income paid on credit cards, which means, dividing your monthly salary to 5 parts, not more than 1/5th should be acquired by your credit card debt, and last but not least using cash for all the expenses unless you get a freebie or benefit from your credit card will be a best productive choice. In this way, you can put a rule to your mind that ‘a credit card’ ought to be used as nothing more than a complimentary aspect for the purchases you make.
Coming to the threats,
- Skipping even a single due can raise your credit card debts to peaks.
- Your credit card debt can bring your reputation down and impact your credit score badly, further ensuing to no avail of credit or loan from bankers.
- The worst part is heavy debt load puts you and your family at stake with unnecessary financial problems. Credit can be a real Health, relationship hazard in such cases. Take it serious!.
Craving and Greed is terrible thing unless you are in on the ground floor. Hope this rings a bell for shopaholics!. Better to be safe than sorry!.
Live your life king size by working hard, seeking small joys and being thankful for what you have, for that is the ideal life! See you in my next blog! .