Things to keep in mind about not using your credit card

Things to keep in mind about not using your credit card

A credit card can be very good if you use it correctly. Many offer 30 days interest-free utilization of a credit linked to the card. If you pay the invoice on time, no interest is added, but you only pay for what you have used on the credit. You can sometimes get an unforeseen expense and then it can be nice to know that you can use your credit card.

 

Vacations

Vacations

Paying trips with a credit card can be tempting, but be careful as it can be much more expensive if you cannot pay the trip directly. The advantage of paying a trip with a credit card can be if it includes insurance when paying with the card.

 

Consumption and entertainment

Consumption and entertainment

Generally, one should avoid shopping and paying for the credit card. It is not something that you get money back on and therefore it is better to save money first and then shop or do something fun. One can ensure a basic principle of never borrowing for something that diminishes in value or disappears after the purchase, such as an experience or food.

 

Games, shares and speculation

Games, shares and speculation

Using a credit card to play, investing in shares or using a credit to speculate, thus investing money in something without knowing if you will get something back. This can be a very expensive business if one is left with debts at high interest rates and does not get anything back on one’s investment.

 

Liabilities

Liabilities

Paying debts with new debts is never a good idea. A credit can have very high interest rates, and then debt relief can grow quickly if you are not able to repay it directly. If you still choose to do so, you should first see how the economy covers the cost of the invoice for the next payment and that the interest rate is not higher than the existing debt to be paid.