Recently, a good friend of mine strongly advised me: «Never
don’t mess with loans. ”What scared her so much?
a few years ago, she and her husband took out a new refrigerator on credit.
We tried to pay the full amount as soon as possible in order to sleep well. And so
somehow they receive an invoice from the bank where they paid the loan.
Just awful! They owe an amount that is equal in value to
the cost of the refrigerator itself! How could this be if they paid everything? It turns out that for a certain time they got a penalty for
the pennies they owe to the bank. Paradox: should have
some penny, but paid the cost of a whole refrigerator.
Of course, I accepted my friend’s advice, because it is better to learn from other people’s mistakes than from my own. But what can you do to avoid being in a similar position?
In a sense, credit cards are like a sharp knife. IN
in the hands of an experienced chef, a knife is a good tool, but an inexperienced one
can cut yourself and be seriously injured. Therefore, I give you 9
helpful tips to avoid financial pitfalls:
1. First of all, keep track of your purchases and check the invoices you receive at the end of the month to make sure you are paying for the items you actually bought.
2. Pay bills right away, as a good reputation is more important than immediate desires.
3. Try, if possible, to pay off the debt in full, so as not to pay interest on debts.
4. If you do not know the person or company you are dealing with, do not
give them your credit card number and expiration date.
5. Do not lend your credit card to anyone (even to friends), because in
if it is misused, none other than its owner will suffer.
6. Do not use your credit card as a bank card to receive cash. Remember: Cash advance is charged a higher percentage than purchases.
7. Do not complete or submit all credit card applications offered to you. For many young people, one card is enough
enough.
8. Use your credit card carefully, remember that when using
her, you spend real money, even if you do not have
banknotes or coins.
9. If possible, pay more than the minimum. Reduce if necessary
expenses, but try to pay off the debt as soon as possible at the expense of
increased payments.
Of course, it is up to you to use a credit card or not, but applying
the above tips will significantly reduce stress and avoid
many financial problems.
