How to Manage Finance So Credit Card Debt Does Not Pile up

It’s not a big sin to use a credit card to pay for groceries. However, you should be wise to use it so as not to get wrapped up in credit card debt.

It’s legitimate if you use a credit card as a means of payment. Because, you can benefit when dealing with credit cards.

For example, you have the opportunity to get a 30% discount at dinner in certain restaurants. Or, you can get 0% installment facility when buying a smart phone at certain outlets

Budi Raharjo, One Shildt’s Financial Planner said that credit cards can secure your cash flow. Because, you do not need to spend when there are sudden expenses. For example, you can use it to pay for hospital bills.

However, you must remember that credit cards are debt, not additional income. So, you must pay the debt.

So here are 4 ways you have to do so that you will not get into trouble using credit card.

Pay the bill fully

The first step you must do is pay credit card bills fully. The goal, so that you do not have to bear the interest bills in the following month.

If you do not complete the debt payment on time. You will certainly lose money because you have to pay interest on the bill in the next billing month.

Do not use a credit card before the bill is paid off

The second step, you should not use a credit card if the bill has not been paid off.

That way your bills do not continue to swell in the following months.

Pay bills before the due date

The third step, you must pay the credit card bill before the due date. That way you don’t have to pay late fees.

Budi recommends that you pay your bills before the billing date so that you do not incur interest on credit card bills.

“Make sure you have enough money to pay the bills before using a credit card,” Budi said.

Diligently check and recheck the value of using a credit card

The fourth step, you should routinely check the amount of credit card usage.

Then, think about whether you can afford to pay off all bills before the due date.

If you feel the charge is too large, then you should stop dealing with the credit card.

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