Defaulting on credit card bills has become a very common as well as a very big problem in recent times. The biggest reason for this is probably the fact that it is easy to go overboard while spending with credit cards. There is of course a credit limit in each credit card that is set as per your monthly earning but usually the credit limit is such that you can have difficulty paying it off with your monthly salary. Even after knowing this fact, it is quite difficult to avoid the attraction of using credit cards since it offers the freedom from carrying cash around. Another big factor that contributes to the attraction of credit cards is that it is widely available. Anyone and everyone can get their hand son credit cards offered by some company.
Regardless of how much the credit card industry suffers due to the increasing defaulters every year, you too would have to face the consequences of defaulting on your credit card bills. Your credit rating report would be hampered making it difficult for you to get any loans in future. Hence it is advised that you try and avoid using credit cards as much as possible.
we know money credit cards: Here are a few tips to help you get over the attraction of using credit cards such that you can avoid defaulting and hence keep your credit rating report clean in the process.
- If you are the sole earning member of your family, then be the sole credit card holder of the family too. If you have to give a credit card to a family member make sure both the limits, of your card as well as the other card, is well within your reach.
- If your shopping bill amount is low and you are carrying that much cash with you, forget about your credit card momentarily. Paying such small amounts with credit card may seem insignificant at the moment but the amounts when added at the end of the month could snowball into something huge.
- If your account has enough money but if you are not willing to carry cash, try paying with your debit card whenever possible. Debit cards are nothing but the ATM cards that you use for getting money from ATM machines. Some kinds of ATM cards can be used directly for shopping and if you have attraction for cards, apply for such ATM cards instead of credit cards.
If you just follow the above few steps, you can avoid falling into the trap of credit card defaulting and keep yourself out of the defaulters list. Personal finance management is an art that just requires a little thinking and that is all.