A lot of people are afraid to use credit card because they believe credit card will push you into making unnecessary purchases and thus you will have credit card debt. This is in someway very true because a lot of people tend to interpret credit card as free money. What they don’t realize that the money needs to be paid back in time and if you cross the time frame, you will end up paying upto 40 percent interest on your credit card bills. When you don’t pay your bill on time you will end up paying 40 percent interest and if you miss paying consecutives, you will get into credit card debt. You can avoid credit card debt only when you are mindful while using credit card and pay bills in time.
How to Get Away From Credit Card Debt
- Thread starter Mika
- Start date
To some extent I do; it is very unwise to use a credit card because if one is not careful, they are very risky. However, it is possible to make it a very powerful money management toolwhen run effectively. This is simlar to having a kind of debit card that everyone acknowledges as an authentic form of payment. The concept is that one only should make charges he/she is in a position to pay according to the billing cycle. This way you don’t hav e to pay interest at all and you create credit record which in the end is of benefit to you. Therefore the concept is not a condemnation of the use of credit cards but rather applying for them, and using them appropriately and productively.