Tips To Stay Away From Credit Card Debts!

Everyone today is exposed to the lives of the rich and the famous. While it is a dream to live the big life very few get round to doing it. This has resulted in an overall escalation in desires and given birth to unnecessary needs.

The credit card is a banking product which has brought about a way to lead a better life, one which would otherwise be beyond one’s means.There are many who while using this tool of money management n turn get caught up in the trap of credit card limits which are often beyond one’s means. Thus, the following tips can be rather useful if one intends to steer clear of debts from such credits cards:

  • The most pragmatic method is to keep a track of expenses and payments on a weekly basis such that one knows where the spending is happening. This will eventually enable cutting of costs.


  • It is also advisable to be aware of the nitty-gritty of the credit deal being offered such as the grace period and interest rate. Thus, when you get the card take the time out and do a bit of research.


  • CIBIL is an institution which has a financial track record of an individual who has been in the system in any manner. Hence, while high utilisation may not always get you a high credit score, an increased repayment liability as a result of rising current balance most definitely will have a negative stress.


  • It is also better if household groceries are not purchased via credit cards. Since, these are part of the budget for the month better to use an ATM or debit card to keep things in perspective. This also allows trimming down unwanted items if any on the budget.


  • A discount sale on apparel or some other item might not bring in any savings if there is a finance charge of around 18% with continuous compounding on balance dues. Thus, spend only as much can be repaid within time each month at the end of the grace period (Usually 50 days).


  • One should plan out the expenses through card and time them with income receipts or other cash flows such that late payment penalties can be avoided.

Credit cards should be used as a regular budget’s complement such that the advantages of credit protection and cash back offers specific to it can be made. Thus, care should be exercised through close quarter expense monitoring to avoid traps from debts.

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