5 Things You Should Never Do With Your Credit Cards
Submitted by xpertchick
Credit cards are very enticing, sugar coated assets we possess. We sometimes fall into a false sense of reality thinking that the borrowed money is our property. But it's exactly that, borrowed money or a loan with high interest. Credit cards are cleverly designed to make you spend and build debt, even the smallest amount. To not lose focus and become addicted to credit card spending, here are 5 things you should never do with your credit cards.
1. Don't make late payments. Not only will you get slap with a hefty late fee-as high as $39 on some cards, but your interest rate could also increase. Sign up for online banking or pay by phone if you tend to wait til the deadline nears. (You may pay a processing fee, generally about $5 but it will be less than the late fee imposed by the credit card company.)
2. Don't pay the minimum amount due. This stretches out your payment and, thanks to the interest, increases your original balance significantly.
3. Don't own too many cards. Multiple cards make it easier to rack up debt because it's harder to keep track of your spending. Having lots of cards isn't necessarily bad for your credit, but using them all is. So limit your plastic to two national cards (NOT store cards) that you manage carefully.
4. Never take cash advances. These advances generally come with extremely high interest rates and service fees, a good rule to live by is try to never pay more cash to borrow cash.
5. Never use your card to buy things you can't afford. Living a borrowed lifestyle is the quickest way to get into debt. If you can’t afford a purchase today, chances are you won’t be able to afford it tomorrow, or even next month.
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