The curse of the Credit Cards...

I don think the heading requires any more explanation...Yes, I'm referring to credit cards. The very thing that makes us spend unnecessarily on all those extra clothes, partying n all other luxuries that you think you need right away. In the past few years, I've had an eye opening experience with using credit cards. Unfortunately, I didn't have any friends who were good enough in financial aspects to advise me on how to actually go about using it. This blog is for those who already have one and not sure how to manage it and also for those who are planing to get one in future. Given below are some of the aspects that you should absolutely know about cards.



1. My biggest advise DON'T GET A CREDIT CARD...if its already too late and you've got one, only then proceed to point 2...!!!

2. Use your CC only for planned expenses such as an LCD TV, Laptop, household shopping or that expensive Swiss watch :-) Never use it for drinking/ casual shopping, as these 2 will inevitably end up becoming you biggest enemies.

3. Make sure that you have the EMI conversion activated in your CC, so that any purchase above 10k can be converted to EMI's of 6 or 9 months.

4. To ensure successful payment every time...all the times..., make sure the total amount required to pay always less than your monthly salary or 2/5 of your total credit limit, which ever is smaller.

5. Never use your CC and you full salary together. Follow 1 of 2 strategies...
- Either spend all your money and use a card only for desperate huge expenses which can again be converted to EMI as per point 2 (OR)
- Use your card for all your expenses (be it small or big) and use 9/10 your salary every month to pay it up.

6. Keep an extra CC with Balance Transfer capability, so that you can move around money if needed.

7. If your goin' out for a crazy all night paaardy, don't take your card with you. You don't wanna end up waking the next day wondering 'Why-TF did I buy that extra drink for everyone' and that too with a bad hangover...!



Now, do remember that all these apply only if your working and thereby dependent on your salary for your CC payment. If your running a flourishing business or if your dad's paying your CC bill...then swipe it off AMAP (As Much As Possible) and chill out...!