Credit cards are magic cards that will make your shopping easier. You don’t have to always carry cash if you want to shop, pay for hotels and make other transactions. By holding this card, the owner can make transactions even though the person does not have any money in the wallet or in the account. So tempting isn’t it?
Credit cards benefit so much for payments. But wait, not always credit cards help your life. This happens if you are not smart and not wise in using a credit card when transacting. Often the convenience and enjoyment offered by a credit card makes users forget the true financial condition. Because it is too easy and profitable, this sophisticated card is able to make you lulled to the point where eventually your debt is mounting.
6 Smart Tips for Using a Credit Card for New Employees
Know that this can be the root of serious problems in the future. Of course you don’t want to be chased throughout your life by a debt collector who can ultimately make your life run out? Here are 6 smart tips for using a credit card so that you become wiser in using the magic card.
Avoid Minimum Pay Bills
A person who is good at using credit cards certainly knows that it’s not good to keep your bills out for long. The reason is, this will cause a new problem, namely the accumulation of interest accumulated bills. Therefore, it is very emphasized for anyone who holds a credit card to immediately pay all the bills that have been charged to him. Don’t just because of late payment problems You have to lose your valuable assets to cover the swollen debt.
Paying off bills as soon as possible is important, why? By paying all bills, you will no longer have debt. Here you will avoid the interest remaining balance that will be charged to the credit card owner. The interest of the remaining bills will increase if you have not paid the bill when it is due. Later, the interest on the bill will be added to the next debt bill. If at the next due date you still haven’t paid it off, the interest will be added again. This is what will make your credit card bills burden you more.
Pay Credit Card Bills Before Maturity Comes
Dare to use a credit card, that means you dare to take risks. One of the risks that you will face is a fine. You will get this fine if you don’t pay the bill when it’s due. Therefore, don’t let your credit card payment be delayed.
Fortunately, there are now several credit card companies that provide easy payment of bills. This facility is in the form of payment facilities that work automatically to make payments from your account or through internet payments within 24 hours. This kind of feature is very important to keep you from being late for paying bills which will result in penalties being imposed. Based on regulations released by Bank Indonesia, the maximum fine is Rp150,000.
Don’t exceed the maximum limit for using a credit card
Each credit card issuing institution sets a maximum usage limit for the credit card products it issued. Do not let you violate the provisions they have set, why. Fines will be imposed if the credit card usage exceeds the usage limit. For example, the specified usage limit is IDR 10,000,000. That means you may not shop or pay with an accumulation of more than IDR 10,000,000.
Accumulated Credit Can Not Be More Than 30% of Total Monthly Revenue
Using a credit card continuously is tantamount to hoarding debt. However, if you are good at using credit cards, you will not make mistakes that make your debt mount. The tip is to use a credit card not to exceed the 30% limit of your monthly income. If you exceed this limit, your financial condition can become unhealthy due to the large amount of income spent paying debt.
Wisdom in Buying Items with 0% Installment Interest
Goods sold on credit have a special appeal for some people. Especially if the installment interest is 0% certainly makes anyone interested in buying it. However, you need to remember that the value of the items you repay can reduce the overall value of your spending. If the value of the item you purchased is IDR 12,000,000 while the credit you have is IDR 15,000,000, the remaining credit usage limit is a maximum of IDR 3,000,000 That is, if your next month’s spending is more than IDR 3,000,000, be prepared to be fined.
Wisely in Expending Annual Costs
In choosing a credit card, you should be observant in choosing it. Make sure that your credit card issuing company does not charge an annual fee. Because there are several credit card companies that set annual fees on their products. In this case, you should choose the type of credit card without annual fees.
Such are the tips that we can share with you, especially for those of you who work as employees. Hopefully the information above can be useful and provide insight into using credit cards wisely. Please leave comments and responses in the fields provided below and don’t forget to share the information you get to the closest people. thanks.