The use of credit cards is certainly not foreign to young executives. Its fast and uncomplicated submission process makes it easy for people to get it. Given the current credit card is not only a tertiary requirement but has begun to shift into the primary needs of the executives. However, it is important to know some surefire ways to avoid credit card traps. So that the use of credit cards run smoothly and so is the status of payment.
Many new laymen who have a new credit card is not clear about the terms and conditions listed in it. One-one they are trapped and in debt because unable to complete the payment well. If the credit card payment status is not current, it will automatically also be recorded in the Bank Indonesia system. So it can be difficult in the future if interested in applying other types of credit. Therefore, read carefully all the terms and conditions before starting to use credit cards.
The error in the use of credit cards is generally just about that-that’s it. Because it is actually we can easily recognize the tricks to overcome them. Check out some surefire ways to avoid the following credit card traps:
1. Telat Pay Billing
Often we forget to pay attention to the deadline for credit card payments, so the bills are paid late. Without us knowing, the delay is subject to fines. To make matters worse, fines are accumulated from the total bill and are interest-bearing interest from the day of late payment. It is conceivable, the amount of interest we have to pay if it is a few days late. It seems a little bit, but it turns out to be pretty big too if it’s accumulated.
For example, a credit card usually withdraws 3% of the total bill for the day of late payment. If you owe Rp1 million, then in the day the interest is Rp30 thousand. Imagine if a week late, then the accumulation of fines will be in the range of numbers more than Rp200 thousand. Well, it has reached 25% of the bill. A lot is not it?
Therefore, it is very important to pay attention to the credit card payment due date. Do not get because we ignore, credit card bills so swell. Small mistakes but can have considerable consequences. So, it is better to avoid the delay of using auto debit payment system. Just make sure the funds in the account is sufficient, so credit card payments will not experience problems.
2. Always Pay Minimum Payment
In credit card bills, there is a trick word known as “minimum payment”. Why trap? Because many people think that paying a minimum bill means they will be fine. Well, here’s a big wrong thought! Consider again the terms and conditions listed in the credit card manual.
Minimum payments result in the remaining unpaid debts exposed to interest. So paying a minimum does not mean the rest will be billed without interest. But it will make you forced to pay interest that is not small in number. Even the value of the payment will be even greater if there is a transaction again beyond the rest of the bill. So in the next month credit card charges will multiply in amount. This can certainly be fatal to the finances.
Therefore, pay as much as possible on credit card bills. Do not let the rest. If you have to pay only partially, pay off immediately when you have more funds. So no need to bother thinking about the interest on credit card bills.
3. Wearing Limit to Out
One of the dangerous things that we do not realize when using a credit card is to spend the limit. Usually credit card limit will be adjusted with our income. Sometimes even credit card limit for the amount of our income. Therefore, the use of credit cards up to the maximum limit will cause problems in the future.
Healthy finance is a finance that uses credit in the maximum limit of 30% of total income. Therefore, limit your credit card usage to a maximum of 30% of earnings. Even if it is necessary to ask the credit card to give a minimum limit so as not to be tempted to use the limit entirely.
If at any time forced to use credit card limit to the maximum, there is one useful enough tips. Enter the amount of funds on the credit card according to the funds you need. In other words if you want to have an item, make sure the value is in accordance with the financial ability. Thus, credit card charges will remain minimal. Because the limit will be added according to the amount of funds you enter. So the funds will automatically reduce the debt at the beginning before the bill appears.