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Sunday, December 25, 2011

How to Use Credit Cards Lucky

Practicality and ease the main reason most people use more than one credit card. Credit cards not only makes it easier when shopping (because do not have to carry cash), but also rewarding when you pay your hotel bill when it was out of the country for example. Credit cards become problematic when you have no self-control in using it. So, before having 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 account that can be used continuously in the specified time period. The man who is familiarly called Adhie this continues, the loan accounts have determined the maximum limit that can be used by the borrower. Borrowers may use these funds continuously provided does not reach the maximum limit. Each time the debt repayment of the loan will reduce the balance in the account. This means that funds can be used also increased.

Importantly, the credit card user is the borrower. So, make sure you have strong self control in order to wisely use the loan. However credit card is debt.

Adhie explains, there are some disadvantages and advantages of using a credit card:

Advantages:

ou will not be charged interest if you pay your debt until paid off under the grace period (prior to maturity) within 25-30 days.
*    Simplify the recording because the credit card company sends the report to your account.
*    Convenience and can be used when not have cash for unexpected needs.
*    The risk is lower than carrying cash.
*    Can be used around the world because the issuing bank in cooperation with the international financial network that is recognized around the world.
* Benefits of current widespread because the issuing bank has worked with some merchants to provide special discounts with credit cards.

Weaknesses:

*    You tend to spend more with credit cards so that a higher tendency of consumerism.
*   High interest rates. You have to pay high interest for the balance which has not been paid.

Tricks:

*    Save credit cards for payment by installment system. Do not get stuck to always rely on payment by credit card if you only can pay the loan by installments.
*   Do not buy their daily needs through credit cards because you'll be addicted and then get stuck with consumer debt. Pay cash for basic daily 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. That is, do not indulge yourself by delaying payment of bills. If unable, then the self control to not only shopping with credit cards.

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