trapez-finance.org >> Credit Card is Not Money More

I would drive a car with my wife on the road in the city when the car radio to play the credit card advertising. Song is a composition of a song long enough and fun to listen to when. There mentioned, that frequently use the card, you will get the selected gift itself.

That is interesting, a few days later, I received a letter from a mother. He said, he has eight credit cards that are all active! Number of allowance also almost all reached the limit. Nah, the amount of revenue each month the mother is almost always said to pay out credit card repayments.

Interesting is not it? On the one hand, there is an intent that the bank and actively encourage people to use a credit card, but on the other hand there are people (and I believe not just one person) stuck with the issue of collection of credit cards.

Then, who is wrong here? Bank or card issuer of the card user? This paper will discuss the issues that can be experienced by the credit card holder if he is not careful.

First, we must first realize that the credit card is only a means of payment. That is, the card functions the same as cash which you use to pay for a transaction. The difference, the card is to be a “stopgap” of cash. If you buy goods worth $75,000 and pay with a credit card, the bank card issuer will charge $ 75,000 at the end of the month. So, the payment is not made at the beginning when the goods purchased, but when the bill comes later.

Is that?, continue to make what is a credit card? Principal advantage of only one: You do not need to bring a lot of cash each time you make a purchase transaction of goods and services. Imagine if you have to involve cash $500 thousand to $ 1 million in your wallet, and you often have to travel to the city bus.

Back to the earlier charges. What if you do not pay off at once? There is interest you pay. The amount of around 2 to 3.5 percent from the number of bills that are unpaid.

If you do not want to pay your bills paid, Credit Cards are usually able to give a minimum payment provision. The amount varies, approximately 5 - 10 percent of the amount of your billing month.

Problems usually start when you start to appear reluctant to settle the bill in full. You only pay a minimum charge each month. While the frequency and value of credit card usage is not reduced but even increased.

For example, total credit card usage in June is $ 1 million. When the bill came, only paid $ 150,000. In July, total you using is $ 1.5 million. When the bill came, paying only $ 250,000. In August, total using is $ 2 million. When the bill came, paying only $ 350,000. So hold.

So, because the amount that each will not be paid interest of about 2 - 3.5 percent per month, then at a certain time, the number of bills will be very high so that you can not afford more earn at once. When the amount of the credit card you have there are many, the difficulty you can release separated from the bill.

So who is wrong? Whether bank credit card issuer? No, Mr. and Mrs.. The problem often lies in the card itself. Many assume that placing a credit card or as a means of additional money. So, in their mind, have a credit card with a limit of $ 4 million, for example, that as additional income of $ 4 million.

So true? No. The card is merely a tool of cash. Each time you use the card, it means you have money to pay the reduced price goods or services you buy.

Indeed, publishers have several banks that provide credit card value to the card, such as various insurance, electronic goods, up to a free holiday abroad. Good, but still you must realize, the credit card only one: while the replacement of cash.

For you are currently stuck with a credit card problem, do not blame your bank card issuer. They did not do anything wrong. Do not you also blame themselves, because it only yesterday that you do not know much a matter of strategy to use a credit card. Should you do first is: earn slowly your charge. Contact the bank card issuer because they can provide solutions that best efforts satisfaction for you.

Talk about a credit card, I also often find that the use of credit cards often appear as the system is less appropriate in the financial management in the family.

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