Credit Cards No No’s

We all wanted to have credit card especially if you love shopping, dining out or you’re a gadget techie. But did you know that credit card is one of the main reasons why a lot of people are in

debt? There may be many people who suggest that you get a credit card. So in case you are wondering if credit card is necessary in your life.

Credit card can be a useful tool, when used properly and with discipline. There are times that you always wanted to use credit card and get hold of the cash you have on hand.

Let me give you some reasons why you should not use your credit card?

1. Loan Payments – never use your card to pay out your loan. Debt should not be transferred to another debt, this will just cost you more in a way that you already have interest with your loan then you’ll transfer it to your card charging you also for interest. The very simple solution here is Do Not BorrowMoney that you can’t afford to pay.

2. Impulse items – if you are shopping, never use your card to avoid impulsive buying of things you don’t actually need. Use your cash on hand and buy only what you are supposed to buy.

3. Cash Advance – do not do cash advance on your credit card. This comes with sky-high interest rates and service fees, making them a far too expensive way to get cash.

4. Don’t lend your card - never let anyone borrow your card, otherwise you are putting your financial future on that person’s hand.

5. Taxes – don’t use your card paying taxes, no one enjoys paying it so why pay even more than necessary in extra interest and fees.

6. Don’t’ pay minimum amount – always pay the full amount of your bill to avoid additional interest. And pay on time to avoid late finance charges.

7. Living expenses - if you are on a grocery buying all your basic needs and suddenly your cash is short, never use your card. This only means that you are spending more than what you are earning. This will also put you to another financial problem. Make adjustments on your budget.

8. Don’t make purchase just to earn points – making purchase to earn those freebies and points is very irresponsible.

With so many credit card facilities some are so eager to have their own credit card not realizing that they are just putting themselves in a hole of problem. Now, that you know all the disadvantages of using your credit card, it’s time for you to get out of debt. You can live without a credit card.