5 Common Mistakes of Credit Card Users, Beware of Swelling Debt
5 Common Mistakes of Credit Card Users, Beware of Swell Debt! At present the public has gotten a lot of convenience from banks related to payment options that can be done.
One such convenience is payment using a credit card. If you are wise and smart in using credit cards, this facility will greatly facilitate you to make payments.
However, when you are complacent and excessive in using credit cards, do not blame others if you are in debt in the future.
There are at least 5 common mistakes credit card users that need to be on the lookout for. In this discussion, we will describe all the mistakes, so you can prevent yourself from doing it.
5 Common Mistakes of Credit Card Users, Beware of Swell Debt!
1. Not Paying Bills On Time
This first mistake is a type of mistake that is often made by credit card users. Late credit card payments will cost you a lot of late fees. Not only that, delays in paying credit card debt can also reduce the credit score you have.
What is the solution? Yes, just take advantage of automatic payments from banks to ensure that you at least pay the minimum amount owed.
If banking offers a payment reminder email facility, it doesn’t hurt to use this facility.
2. Prioritize Other Loan Payments
This is a common mistake of other credit card users who can make debt swell. Many people also tend to pay other bills first, which are considered larger, such as KTA loans or others. As a result, delays in paying for credit cards are very common and often occur. They do not realize that the interest expense on credit cards is very large, which reaches 2-3% in one month.
The longer you postpone payment of credit card debt, the greater the interest that will be borne. Not to mention the payment of late fees which is an additional burden that must be paid.
3. You Don’t Care and Don’t See the Amount Charged Every Month
Maybe this is not done a lot by people who have credit cards because of boredom and not too fond of seeing the billed figures. Yet by paying attention and seeing the amount that is billed every month, you can identify billing errors that you shouldn’t pay. As a credit card user, you have the right to refute billing errors made by merchants or banks. The above you will not be able to do, if you yourself do not care about the amount of bills given each month.
Not only that, you also will not realize if someone stole a credit card and made payments that must be mounting. Wow, beware of swollen debt!
4. You Ignore Your Credit Score
As a credit card holder, you also have the right to view credit reports at least once a year. If you do not use this facility, then you will never know when a credit report error occurs that harms your credit score. The solution you can monitor credit scores for free by using the services offered by your credit card provider.
5. Closing the Old Credit Card Account
When credit cards are rarely used and only stored in the wallet, you might think of closing the account immediately. What you rarely realize is that closing a credit card can unexpectedly reduce your credit score, even if you don’t use it for several months. This means closing a credit card account will reduce the amount of available credit that you can take advantage of.
Especially if you have a history of credit card payments on time. The lender is usually very concerned about a positive history of payments that continue to run and this you can not get when the account is closed.
The majority of errors that we submit result in the payment of larger bills in the future. This of course will drain and affect the financial health of your family. Though you can use the money for something more useful in the future, namely investment. By investing, the money you invest in one investment instrument is able to grow in the future.
The investment results obtained can be used for various needs or needs such as holidays with family, paying down payment for a house, paying for children’s education funds, as well as buying their own vehicles.