CREDIT CARD!! CREDIT CARD!! THE DON'TS OF IT!!

Credit card...convenient or burden? My personal experience...BOTH!! Haha....call it anything, the sole description of credit card...still...a credit line facility obtained from financial institution or I would categorized it as personal loan. Well, we apply, approved by the respective bank and tadaaaa!!! The next thing you know....month end statement stating the amount we owe to the bank or in simple verb...DEBT. How to survive this? I'm going to share with you a few tips that maybe many of us knew it...only...you completely forgot about it!!


1. Don't make only the minimum payments- This stretches out your payment and, thanks to the interest, significantly increases your overall cost. Put effort on paying an extra RM50 or more and trust me, you'll save a lot throughout the year!

2. Don't carry too many cards- Multiple cards make it easier to rack up debt because it's harder to keep track of your spending. Having lots of cards isn't necessarily bad for your credit, but misusing them is. So limit your plastic to two cards that you manage carefully rather than having 10 cards in your purse or wallet (unless you intend to show off your debts...haha!!).

3. Don't miss payment due dates- Not only will you be hit with a late fee-as high as 5% of the outstanding balance on some cards-but your interest rate could also jump. Sign up for online banking or pay over the phone if you're up against the deadline. (You may pay a processing fee, but it will probably be less than the late fee and the possible interest-rate hike).

4. Don't take cash advances- These advances generally comes with sky-high interest rates and service fees, making them a far too expensive way to get cash. Avoid at all costs!!