क्रेडिट कार्ड के चक्रव्यूह से कैसे बचे | How to use a credit card

In this day and age, one must exercise restraint while shopping Else, there’s a risk of being caught in a credit card’s whirlpool

Credit card means a free bash without the cash, right? There you go, you nodded and brought upon problems on yourself I am Abhimanyu, and today we’ll see some battleplans that’ll ensure victory over your shopping and payment dilemmas Every now then, we see sale and offers flashing everywhere, be it online or offline And, it’s only natural for us to get attracted towards them Just that the problems begin when we buy and spend uncontrollably

It’s important that you make wise decisions and go easy while shopping You must’ve heard of the saying: Cut your coat according to your size Likewise, it’s advisable to restrict your card’s spending limit to 50% of your monthly income If you overstep that limit, you might end up blowing your fuse Have you heard of someone having used a cannon to get rid of a mosquito? Exactly! Refrain from using your credit card for small transactions

It lowers your credit limit and gathers unwanted interest Never use a credit card to withdraw cash from an ATM It may wreak havoc Reason being, there’s no credit period for an ATM withdrawal made using a credit card The payable interest is calculated on a per day basis

Would you think of using your bike’s keys to start your car? It’s advisable to fully clear your card bill’s monthly payments within the due date for transactions made with regard to taxes, any down payments or water and electricity bills Better still, don’t use your credit card for such transactions itself Else, your CIBIL rating gets affected You’re obviously aware of the terrifying nuclear bomb Now beware the DUE CLEAR bomb!! It’s imperative that you clear your card bill dues within the allotted 50-day period

If not done so, the interest rates reach skyhigh from the 51st day onwards And, it will not only become difficult but may turn impossible for you to rise above it and pay them off! If you show your delight in shopping impulsively, then your card issuing bank may also tempt you further with more such offers and discounts We call that not an offer, but a suffering! When you select your favourite sweets at a shop, you naturally get down to choosing one or two, right? Ensure that you factor these in your monthly budget, else you won’t even know when the ground beneath your feet gave way! You can’t rave and rant about these additional charges later When you clear your monthly credit card payments, do remember to leave no dues Or else, these part payments will tear you apart

Also, don’t fall for the minimum payment clause used by banks as you may end up paying more interest Let me give you an example Your total dues amount to Rs 1 lakh Your card issuing bank says you can pay just Rs

6,000 for now You end up happily paying that with a smile Now, the remaining Rs 94,000 starts to incur interest to the tune of 36% This will bring down your CIBIL rating and shoot up your blood pressure

One more thing, if you happen to own more than one credit card, then don’t ever use one to clear the billing dues of the other Don’t fall for these “top-up” shortcuts These “top-up” measures are best suited for prepaid mobile recharges Choose the EMI option, while making a purchase for a high amount It will help make your amount appear smaller and manageable

The same way an elephant seems like an ant from afar, in a battlefield Well, these were some smart tips for you to follow on how not to fall prey to overstepping your credit limit and using your card the right way Credit cards are actually heroes that save the day, but, if you set out on a spree wielding them like a superhero, your card payments will keep increasing and in turn, your bank balance will go on deflating It’s up to you to decide Do tell us in the comments below how useful were these tips presented to you

Please Like and Share this video Subscribe to the Paisa Pujari channel to stay updated on all future notifications and be aware of more such handy financial tips Until then, it’s goodbye!