Posts Tagged ‘Avoid credit card debts’

5 Stupid Things People Do to Invite Mounting Credit Card Debts

People generally fall into the quagmire of credit card debts because they do some stupid things they are not supposed to do; blame it to their carelessness or unawareness. In either case, most of the times, they don’t realize that they are using plastic money unwisely, which is actually pushing them deep into debt troubles. Here’s a list of five of those stupid things that you should not do.

Meeting Your Basic Needs Using Your Credit

Debt is not at all an enjoyable thing, is it? So, just because you have access to an easy source of credit, it doesn’t mean you must use it. It is not very difficult to borrow money; paying it is. If you are using plastic money to meet even your basic needs, such as gas, clothing, and food, it’s high time you must sit back and think what is wrong with you. Don’t do it.

The Balance Transfer Game

The balance transfer game sounds to be great fun, as it helps you avoid payments for credit card debts that you owe. For how long you can keep avoiding the same; one month, six months, a year? The day will come soon when you will have to face the debt monster and there will be no escape. And, if you have no money at that time to pay those debts that have grown into mountains now, you can be on the verge of bankruptcy. So, avoid this balance transfer game where you transfer the balance from one card to another with the only objective to avoid the monthly repayments.

Ignoring Your Credit Card Statements

Your credit card statement is not something you can afford to ignore. If you are doing that, assuming everything is fine and that the debt must not be too much, you are actually giving it time to grow. Regular review of these statements will help you catch the in its initial stage much before it takes the shape of a monster.

Not Having an Emergency Fund

Plastic money is not meant to be used to pay for large, unexpected expenses. You need to have a separate emergency fund to meet such urgent financial crisis. The absence of emergency fund will keep forcing you to use your card in those situations, which can eventually turn out to be very costly, especially if you already have a damaged budget.

Paying Less While Charging More

Imagine you are trying to fill a hole, but you are putting in very little dirt while someone keeps digging the hole deeper; it will take the shape of a valley soon. That’s what happens when you charge more and pay less; your debts will keep on increasing fast, building a deep valley of debt for you. Be a little wise and try to be on time with your payments.

When you avoid these 5 stupid things, you can easily avoid and keep the financial road quite smooth forever.

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