You pay more than 30% of the amount as interest on you credit card annually!!!
For Rs 10000 spend, you pay about Rs 3180 as the interest rate for your credit cards each year. (With 2.65% as the interest rate)
Cards – both debit as well as credit, have made our lives easier and simpler in every manner. We do not have to worry about carrying and handling cash as it was a couple of decades ago. Money is becoming also virtual. Just as there are advantages with this, there are also many disadvantages that come with it as well. If one is not careful, it can easily lead anyone into a debt trap. I have seen this happen to many of the young and successful people in the very happening IT crowd. If you know someone you care about, who needs to learn to carefully handle credit cards, do share this post with them now.
Just as it is easy to carry, to make payments with your credit card, it is also equally easy to get into a debt trap with credit cards. However if you are careful there is a way to avoid all the interest in the credit card, but enjoy all of it’s benefits. I will be explaining in detail about how you can do this.
The first step is to get a credit card with gives you a lot of benefits without annual subscription charges. You will easily get it if your credit history is good.
As I write this I remember a joke where a teacher asked his students how they can go to heaven. He asked them if Good deeds will take them to heaven and they all replied no. Then he asked if helping the aged will take them to heaven and they all answered no etc. Finally he asked them how they can go to heaven, they answered that he needs to die first!!
Same is the case hhere 🙂
Before you sign the dotted line for the credit card BECOME AWARE of all the advantages that you can get using this card. You can easily get a lot of benefits like
1. Waiver of petrol surcharge or cash back at preferred outlets
2. Free lounge access in the airports
3. Exchange of points with air tickets.
4. There are cards that give you additional points if you purchase on certain retail or online outlets. You can divert your household purchases via those channels.There is a card that gives 5X points in case you buy on bigbasket. So I prefer to buy household items through bigbasket(Only the reasonable ones)
5. Also make sure you ask about the annual subscription fees. You can get it waivered by talking to your agent.
Once you have the card, go the the website or call the customer care or look at you statement and identify the following:
1. Bill Generation Date(BGD)
2. Payment Due Date(PDD)
Make sure to take time to search and note down these 2 dates in an important place that you will not miss. I will be write the next steps to be followed in the next post.