Please understand if the bills continue to swell into debt that has accumulated. The thing is you have chosen to be a credit card user who is not responsible.
You need to know. Do not just because you no longer hold cash, you then use it at will. That’s not the way too. There are also limitations to using it, the same as spending cash.
So , if your finances are in trouble later because you often pay non-cash , don’t immediately blame the card in your wallet. You might not realize that you have become a user who has lost control.
So, so you can realize earlier, there are some characteristics that indicate whether you are a good or bad user. What are the characteristics ? Just check right away.
1. Really like to pay using the minimum payment option
Instead of paying in full, it’s better to pay the minimum payment . It is true that using minimum payment is easier to pay bills.
However, this is not a good thing to do continuously and only make you a bad user later. In the end because of this habit of paying the minimum payment , your financial condition will be disturbed later.
Just so you know, pay with the minimum payment option is the same as you agree to pay credit card interest . Because the rules of the game are automatically charged when you only pay USD 50 thousand for example. You can be sure your bill will swell.
2. Use to touch the limit, sometimes like going too far
This is the second characteristic that exists in users who are not responsible. It’s okay to use it to touch the limit as long as you don’t complain later when the billing statement is sent by the issuing bank.
The best way to use a credit card is not to actually transact it to the limit, but rather set a 30 percent limit on your salary as the limit. Because debt or installments or bills amount to a maximum of 30 percent of salary.
More than that, it can mess up your financial management later. At first you could hangout every weekend , but no longer because the funds are used to pay installments or bills.
3. Take advantage of 0 percent interest installment benefits, but often late to pay
One of the uses of a credit card is the zero percent installment benefit.
This is the pleasure of having a credit card. You can enjoy 0% interest installments. Imagine you buy the desired item by installments for 12 months and free of interest. Is it not profitable?
Not to mention if there are other additional promos. The more maximum the benefits obtained.
Unfortunately, the pleasure of this facility must stop when you pay bills with the minimum payment option . Or you often pay late, aka bills, pay overdue.
End of story, as a bad user, you have to bear the installments plus the interest. Coupled with late fees if you really late to pay.
4. Like to do cash withdrawals
If it’s not very important, it’s better not to do cash withdrawals. After all it’s not the same as the debit card in the matter of cash withdrawals.
If you don’t charge a debit card for cash withdrawals , on a credit card you will be charged a fee of about 3-4 percent per transaction. Not to mention the added interest. Per cash withdrawal is subject to applicable interest, which is 2.25 percent.
So if you want to be a good user, stop making cash withdrawals. Because no luck, really, unless you’re really trapped.