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When did you start having your first credit card? Some of us have it when we started working. At that time, owning a credit card (cc) is something to be proud of. The feeling of swiping the card is something that you can’t explain. If you have watched the chick flick movie ‘Confessions of Shopaholic‘, you will definitely get it.
Credit cards can be your “trusted friend” but it can also turn to be your biggest enemy when you receive the bank statement at the end of the month.
It cannot be denied that some of us have been caught situations where we can only afford paying the minimum amount of the total spending. That is actually really bad and a sign that we are financially weak. Actually, having a credit card is not wrong especially if you need to pay big amount of money where carrying money is not a wise decision.
Here are the basic things you might need to know if you plan to have a credit card:
1. Avoid having more than one credit card. More credit cards mean more debt.
2. Treat credit card as a debit card. When you know how much money that you have in the bank account, you will not buy unnecessary things.
3. Apply for a credit card which offers free annual fee. You will save at least RM 150 per year (depend on merchant).
4. In any case if you have overspent, try to pay more than the minimum amount or at least 10% of your salary and DO NOT swipe it again. Settle all the outstanding debt first before you start using it again.
5. Avoid bringing your credit card during sales time as it will drive you crazier and you might over spend without realizing it.
6. Choose to apply credit cards which give you more rewards and benefits. Some credit cards give you rebate by cash when you pay before the payment period is due.
To conclude, credit card can be your savior during emergency time, so no, it is not a sin. The most important is how smart you are managing your expenses and have self-control. Have any experiences with credit cards you want to share? Feel free to share it in the comment section below.