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Tuesday, February 2, 2010
Practicality and convenience to be the main reason some people use more than one credit card. Credit card not only makes it easier when shopping (because do not have to carry cash), but also useful when you pay the hotel bill when he was out of the country for example.
Credit cards become problematic when you have no self control in using it. So, before you have a credit card, it is important to understand how to use it intelligently.
Syafriady Hutagalung, financial planner, writing in the Financial Consultant Group defines credit cards as a form of loan accounts that can be used continuously within a specified period of time. The man who was familiarly called Adhie continue, in the loan account has been determined that the maximum limit can be used by the borrower. Borrowers can use these funds continuously provided did not reach the maximum limit. Each time a debt repayment of the loan will reduce the balance in the account. This means that funds can be used also increases.
Importantly, the credit card user is the borrower. So, make sure you have a strong self-control in order to use loans wisely. However credit card is debt.
Adhie explained, there are several drawbacks and advantages of using a credit card:
Advantages:
* You will not be charged interest if you pay your debt until paid off in the grace period (prior to maturity) within 25-30 days.
* Simplify the recording because the credit card company will send a report to your account.
* Convenience and can be used when we have no cash for unexpected needs.
* The risk is lower than carrying cash.
* Can be used around the world because the issuing bank in cooperation with international financial networks that are recognized around the world.
* Benefits for its current issuer bank has worked with several merchants to provide special discounts with credit card.
Weaknesses:
* You tend to spend more with credit cards so that higher consumer trends.
* High interest rates. You have to pay high interest for the balance not yet paid.
Tricks:
* Save your credit card for payment by installment system. Do not get stuck to always rely on payment by credit card if you can only pay the loan by installments.
* Do not buy their daily needs through credit cards because you will be addicted and then get stuck with consumer debt. Pay cash for daily basic needs, and save your credit card at home.
* Pay your bills before the due date to avoid interest.
* Pay your bills for the amount of groceries. This means, do not indulge yourself by delaying payment of bills. If you can not, then the self control to not only shop with a credit card.
Credit cards become problematic when you have no self control in using it. So, before you have a credit card, it is important to understand how to use it intelligently.
Syafriady Hutagalung, financial planner, writing in the Financial Consultant Group defines credit cards as a form of loan accounts that can be used continuously within a specified period of time. The man who was familiarly called Adhie continue, in the loan account has been determined that the maximum limit can be used by the borrower. Borrowers can use these funds continuously provided did not reach the maximum limit. Each time a debt repayment of the loan will reduce the balance in the account. This means that funds can be used also increases.
Importantly, the credit card user is the borrower. So, make sure you have a strong self-control in order to use loans wisely. However credit card is debt.
Adhie explained, there are several drawbacks and advantages of using a credit card:
Advantages:
* You will not be charged interest if you pay your debt until paid off in the grace period (prior to maturity) within 25-30 days.
* Simplify the recording because the credit card company will send a report to your account.
* Convenience and can be used when we have no cash for unexpected needs.
* The risk is lower than carrying cash.
* Can be used around the world because the issuing bank in cooperation with international financial networks that are recognized around the world.
* Benefits for its current issuer bank has worked with several merchants to provide special discounts with credit card.
Weaknesses:
* You tend to spend more with credit cards so that higher consumer trends.
* High interest rates. You have to pay high interest for the balance not yet paid.
Tricks:
* Save your credit card for payment by installment system. Do not get stuck to always rely on payment by credit card if you can only pay the loan by installments.
* Do not buy their daily needs through credit cards because you will be addicted and then get stuck with consumer debt. Pay cash for daily basic needs, and save your credit card at home.
* Pay your bills before the due date to avoid interest.
* Pay your bills for the amount of groceries. This means, do not indulge yourself by delaying payment of bills. If you can not, then the self control to not only shop with a credit card.
Labels: economy
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