6 Ways to Reduce Credit Card Late Payment Fees

Having a credit card can be useful, as long as you are not in arrears. Every delay generates bank charges such as interest to pay on your unpaid expenses. For example, some banks charge late fees or charge high interest rates. So here are some tips to help you minimize the late payment of your credit card.

Contents :

  • How to choose your card
  • Use a single credit card
  • Know your repayment timeline
  • Pay back on time
  • Limit your expenses
  • Avoid withdrawals

1. How to choose your card

Late payment can generate significant additional costs. To minimize these costs, it is useful to look at the rate applied by banks regarding repayment and late payment and find the one that suits you best. In addition, bank charges may apply to different types of credit cards:

  • Conventional Credit Card: Make sure you pay back a portion of the amount you borrow each month. Your bank gives you a minimum monthly amount to pay and the payment deadline. Always pay on time to avoid late payment.
  • Prepaid Card: Your expenses are automatically debited from your account before the repayment due date. This means that, each month, your current account is reduced by the total expenses incurred. If your balance is insufficient, you pay interest based on the applicable APR.

Trick:

If you can’t pay your card balance this month, avoid making new purchases in the following month to reduce the costs of late payment. If you choose installment payments, try to reduce the number of repayments or even repay all your expenses at once. Be aware that by repaying the balance as soon as possible, you will pay less interest due to a potential late payment.

2. Use a single credit card

Another way to reduce your payment delays is to consolidate your balances from multiple credit cards into one card. So you don’t have to pay for the different cards, and you centralize all your expenses. It will be easier to follow up by consolidating your debts in one place. You can also better manage your late payments and pay off your card balance by paying one bill at the end of the month.

3. Know your repayment timeline

It is time by which borrower is required to fully repay the utilized credit. Make sure you know yours so you can repay your debts on time and avoid late payment.

4. Pay back on time

To avoid further payment delays, it is best not to exceed your credit card repayment deadline. You won’t have any additional expenses if you pay your bills on time. Learning to meet your payment deadlines will help you not lose too much money. Avoid unnecessary purchases to pay off your balance on time.

Trick:

  • If it is difficult to repay the entire balance, always try to pay more than the minimum balance mentioned by the bank.

5. Limit your expenses

Depending on the amount of your expense, it may be more advantageous to pay with your credit card or take out a loan. Because of the bank charges associated with repaying your monthly payments and possible late payment, you may prefer a loan for large expenses such as a car or renovating your home. Credit cards have a limited limit, so you won’t always be able to borrow as much as you want. In this case, they are to be preferred for day to day shopping purchases or others with a low cost. Typically, credit card rates are generally higher than personal loan rates.

You can also choose different payment methods. Prefer to draw a little from your savings rather than drawing it from your credit card.

6. Avoid withdrawals

With your credit card, it is also possible to withdraw cash at ATMs called as cash advance. As simple as it sounds, cash advances also have a cost. You will be subject to bank charges and interest related for using this service. To minimize your costs, think about spending only the money you have. If you do not repay them on time, your late payment may also cost you interest on the amount due.

By avoiding late payment, you save most of the time on unnecessary costs incurred. With these 6 tips, make sure you know the cost of your credit card. Read carefully all the conditions related to your card.

Is Your Credit Card Right One? 4 Signs That Tell, It’s Not

Good credit card management is, for many, the most important indicator for accessing bank loans on better terms in the future. Everyone who has had a relationship with a financial institution has used the plastic money, either for their first purchase of a cell phone or buying stuffs online or travelling because they offered incentives such as miles to travel or points to redeem for future purchases.

Over time, however, some bad habits create a damage to the credit history. There is a temptation to take advances with credit cards without paying attention to the fact that each bank charges a fee for this transaction and the current interest rates on this money are the highest for consumer credit and that if there is default, the moratorium rates are equally disastrous for any pocketbook.

You become parents

Parents who are new to their first baby don’t think much about all the changes that the new family member will bring. And they believe that life will continue as it was before and they will continue to go to those fancy restaurants, that they will find a way to keep traveling with the baby in their arms and they will continue to travel the world. That’s probably not the case and that’s why they should also check their credit card for a discount for their new needs.

Instead of that plastic to earn miles, choose the one that gives discounts on baby items or benefits on newborn clothes or milk jars and diapers. And if such cards are not available, look for a card specially made for shopping. Although, looking for discounts on diapers/shopping cards, will be less sexy than saving for that trip, but you will see that it will serve your finances better.

Your card is stretched over the limit

The misuse of credit is very costly. Over crossing the credit limit carries a very high interest rates which ends up affecting your credit history. If you are hung up on the installments you have the option to refinance with the bank, although this may generate new interest and lengthen the repayment of the debt. If you become delinquent the next month, your credit history may be affected.

Another option is to ask for an increase in the limit. But if you’re already hung up on the one you have and you’re lousy at managing your finances, you’re likely to be tempted to make a new advance to open up one more hole in your pocket, without having covered up the old one. Or finally, sell the debt to another bank. There are many entities offering card balance transfer at lower rates. But as long as you improve your situation, hand over the cards and end up paying off that debt.

Your credit card is from a private company

There are many private credit cards i.e. usually an agreement between banks and large supermarkets/others. The discounts or offers are specific to those companies only.

The problem is that if you accumulate points on one side, they may not work for you in another shop, and that’s a bit of a disincentive for the buyer. So before opting for such a card, check the policy carefully so that there are no surprises with your use of your plastic money.

No longer meets your financial objective

Credit card is not a’souvenir’, nor a reminder of anything. It is a means of payment and that’s it. See if the bank offers you a product that has a more favorable interest rate for your financial situation. There is no point in sticking to a card that may be obsolete and that does not even bring the minimum security to your finances.

What to do if credit card is lost or stolen abroad?

You are on holiday abroad and you have just been the victim of a theft or you have just lost your credit card card? What are the formalities to be completed to protect you from possible abuse?

Let’s understand this in detail below:

Risks related to the theft or loss of bank cards abroad

When on holiday abroad, be even more alert than at home. Because in the event of theft or loss of your bank card the procedure to report will be more complicated in foreign country.

There is a good chance that someone with bad intentions may have stolen your card for fraudulent use. Although fraudsters cannot withdraw money without your PIN code at ATMs in Europe or abroad, they can make payments on your behalf, especially online payments on sites that do not bear the words “Verified by Visa”, “MasterCard Secure Code” or “SafeKey”.

Moreover, in some countries outside Europe, it is still not necessary to put your PIN code to make payments in shops, restaurants, etc.. This increases the risk of fraudulent use of your lost or stolen card.

What is the procedure to follow in case of lost or stolen bank card abroad?

When you notice your credit card has been lost or stolen, you must act quickly. You must, in order:

  • Contact your bank to stop and block your card. It is also very important to keep the acknowledgement number provided by your bank, it will be required to prove your claim.
  • Report suspicious theft or loss of your credit card to the local police.

It is very important to take these steps as soon as possible in order to be able to be compensated for the money used without your knowledge. If you still have your card but it has been used without being physically presented (for example via the Internet), or if it has been copied, you will not have to pay a small amount to the bank.

If you follow this procedure carefully, you will in the worst case lose a small amount of money. Your credit card provider is responsible for all fraudulent charges made after you report to stop your card. This is only true if you have not committed a deliberate negligent act, such as leaving your credit card in your car in plain view with your PIN code nearby.

By performing this procedure, your bank will reimburse you for fraudulent transactions between the time your card is stolen and the time it is blocked. The small amount mentioned above can be waived if you have fraud insurance included in your credit card.

In addition, you can also ask your bank to replace your bank card. In general, replacement costs will be at your expense.

How can I protect myself against credit card theft or loss abroad?

To avoid becoming a victim of credit card theft or loss abroad, here are some simple tips to follow:

  • Keep your credit card in a safe place.
  • Be vigilant when withdrawing money: go with someone, avoid using ATMs at night, prefer withdrawing money inside banks, check the status of the ATM (extra cameras, keyboard status, etc.) and be attentive to the people around you when withdrawing money.

You now know the main formalities to complete in the event of theft or loss of a bank card. So be careful with your bank card when travelling abroad.

6 Tips to Keep Debt Under Control

We often hear rising non-performing assets of the bank which is nothing but businesses or individuals are having difficulty paying their loans or credit card repayments. But why is it becoming more and more difficult to repay your credit? There are various reasons for this. For example, fall in interest rates, encourages households to borrow more.

So how do you get out when debts start to accumulate and the situation gets out of control?

1. List your credits and reduce your expenses

Take stock of your situation to assess your ability to repay on time. Repay credits with high rates first if you can’t pay them all at once.

It is often not easy to reduce spending in a consumer society like ours. List the monthly expenses that you must pay. Example: rent, energy bills….

On the other hand, you can also try to renegotiate with your suppliers: change your car insurance if it is too expensive or your telephone/internet subscription to reduce your costs. You need to limit unnecessary expenses like the latest iPhone 6 or a new TV.

2. Talk to your banker and ask for a lower rate

Bankers are not necessarily the first people you want to talk to about your debts, but they are the only people who can help you and provide solutions. Don’t be afraid to review your situation with them as soon as you feel that debts are starting to accumulate. The sooner you do this, the easier it will be to manage.

If you have been able to repay your loans on time so far and have built a relationship based on trust with your bank, your bank may offer to lower your credit rate. If this is not the case, ask your bank what other solutions are available to help you.

3. Consider taking out insurance

Personal loan insurance is not mandatory, but can be useful to cover death or disability. If you do not have insurance, it is important that you talk to your bank to find a solution to help you.

4. Opt for a credit consolidation or a credit repurchase

A credit repurchase can be a solution to lower the interest rate and to see your situation more clearly. You can take out a new loan with another company to repay all your outstanding loans and reduce your overall monthly payment. On the other hand, a credit consolidation will require you to pay your credit over a much longer period to compensate for the decrease in monthly repayments. Talk to your bank to see if this is the best solution for you. Also consider closing your revolving loans.

5. Use non-judicial debt mediation

If you are facing temporary difficulties that jeopardize your financial situation or if you are facing prolonged over-indebtedness, you can resort to non-judicial debt mediation. It constitutes personalized assistance by persons designated by law or by public or private institutions.

6. Consult the collective debt settlement

Collective debt settlement is a legal procedure to try to remedy situations of over-indebtedness that have become unmanageable. It enables people to regain living conditions consistent with human dignity and to repay all or part of their debts, as far as possible.

It is important to think carefully before taking out a loan so that you will be able to repay it. Pay attention to your expenses and manage your budget well.

10 Misconceptions about Credit Cards

It’s time to stop misconceptions and think that credit cards were invented by the devil to put you into huge debt.

Some people are scared to death of credit cards. This is usually for 2 reasons:

  • When they know someone who has succumbed to debts because of them or
  • Someone who does not know how they work.

Some of these preconceived ideas are really absurd. Here are the most common misconceptions about credit card:

1. Credit Card = Debt

You will only be in debt if you don’t pay your credit on time. More emphasize on the word “on time”. Once the due date has passed, if you have unpaid balance, you will have to pay interest.

2. The interest is too high!

Again, they are high if you don’t pay your bills on time. When you make a purchase with your card, you get an interest-free period, called a “grace period”, which varies depending on your bank. Interest will be added to the payment of your credit after this period. This is something you want to avoid unless you want to have debt.

On the other hand, a deferred debit credit card is directly linked to your bank account and allows you a deferred payment of your purchases for a maximum of one month, without paying interest.

3. My friend/relative got into a lot of debt over credit cards

There are three reasons why people accumulate so much debt with their credit cards. They keep forgetting to make refunds. They’re over their card limit. They don’t keep track of their expenses.

If you are a responsible person and pay attention to your expenses, there is no reason to worry about having a credit card.

4. I’m gonna forget to pay off my credit

Banks would love card user to forget making repayment. But most banks have online banking systems that allow you to access your account with a single click and make payments on time. Too easy, isn’t it!

5. A debit card offers me the same benefits

Wrong. Credit cards offer you many benefits, such as miles, cashback, points, or insurance that you do not receive with a debit card. Finally, it will be impossible for you to plead lost money at your bank in the event of debit card fraud.

6. I don’t want to have an account with that bank just for the credit card

The good news is you don’t necessarily need it. In many cases, you can get a credit card with Bank A without opening an account with the same bank. In that case, you can pay your balance from your account with Bank B. So who says, it is complicated?

7. Credit cards have hidden fees

This is absolute rubbish. Credit cards have terms and conditions that you need to know to understand what you are signing up for. It’s like when you read Facebook’s terms and conditions when you create a new account.

8. Credit cards are not secure

First, when you are careful, you are very unlikely to be a victim of credit card fraud. But if this happens to you, the banks may block the transaction or even refund you. This is not possible with a debit card; what is lost will never be recovered.

9. A card like this is gonna make me spend more

It’s all about the state of mind. If you think you will spend a lot with your card, you can choose one with a smaller limit. For example: an amount less than your salary.

10. I don’t know which one to choose

There are many credit card comparison tools available online that allows you to compare between several cards very easily. You can also compare on websites of different financial institutions and find the financial product that suits you best.

Studying Abroad? 4 Ways to Finance Your Studies, Stay & more

Would you like to study abroad, whether at a university in California, study for a Master’s degree in Cambridge or take language courses in Spain or Portugal? Many students dream of pursuing part of their studies abroad. A new environment as well as another school on resume is likely to offer you an unforgettable experience. It also allows you to stand out when looking for a job or a first job.

But what are the means to finance your studies abroad? And if you don’t have enough money, is it possible to get a loan?

If you wish to study abroad, it is important to first list the fees and estimate the budget you will need. You need to know, for example, how much will your education and future housing cost? You must also consider food costs. For example, a sandwich in Norway is 84% more expensive than in Belgium, and a condo in California is expensive than other parts of the country.

1. The financial possibilities

Studying abroad can quickly become expensive. If you know the total cost of your trip in advance (12 to 18 months), you can still save and try to raise at least some of that amount. Once you have a good overview of all your expenses, it is important to determine how you will fund them.

Here are the different possibilities available to you:

  • Using your own funds: Can your parents help you financially to study abroad? Do you have a savings account funded through a student job or grants? Or were you employed and earning money before applying to a university? This is still the best way to pay for your stay abroad.
  • Applying for a scholarship: The only drawback is that you must meet a number of criteria and complete certain formalities before you can apply. You can apply for different scholarships at different organizations depending on the country you want to study in. There are various programs such as Fulbright Foreign Student Program, Abbey Road Summer Scholarships, Civil Society Leadership Awards and Hubert Humphrey Fellowship Program offering scholarships to International students wanting to pursue education in the United States. Do not hesitate to ask about these scholarships to find out what the conditions and methods are for obtaining them.
  • Combining studies and a job: Even if you have a reserve of money in your bank account, it may not be enough and you may need a little more money to finance your daily life abroad. You can, for example, try to get a part-time job abroad or try these work from home jobs in the free time.
  • Finally student loan: If the above options are not available to you, you may take out a student loan as a last resort.

How can you get a loan?

Before you can obtain a loan, you must meet several requirements depending on the country you live in. In addition, the bank will examine your financial situation to see if you have any (outstanding) debts and if you are able to repay this loan.

The latter can be subscribed under your own name, or that of your parents. Students who borrow under their own name must be able to demonstrate that they have the ability to repay. If you’re not sure what type of loan is best for you, check various education loan comparison tools available online.

3. How does student loan work?

There are essentially two different types of loans available for young people wanting to study abroad: installment loans and credit lines. These types of contracts are between a financial institution (for example a bank) and the student.

Credit Line Opening:

If you want to withdraw small amounts of money when and where you want, without knowing in advance exactly how much it will be, opening a credit line can be a good choice. It can take the form of a credit card with an overdraft facility or a bank card with a line of credit or an authorized overdraft on your bank account.

With this type of credit you can withdraw money when you need it, several times throughout the term of your contract and benefit from flexibility in repayment (subject to compliance with certain conditions). This credit is also revolving: the funds you have used and repaid are immediately available again. However, with the zeroing period you must repay the credit in full at least annually or once every five years.

Installment Loan:

It is an alternative to the opening of credit. Here you take out a loan for a predetermined amount and term. You will therefore have fixed monthly repayments. Installment loans are particularly suitable when you have a substantial expense to make at once (such as the college fees). So you borrow money and then repay the interest and principal monthly.

4. Repayment of your loan

A student loan usually does not have to be repaid immediately. You may even be able to wait until you finish your studies.

However, it doesn’t make sense to wait too long to repay your credit since interest starts to accrue from day one. Knowing that your professional career will only start some time after you take out the loan, it is essential to borrow only the amount you really need for your studies and to repay them as quickly as financially possible.

7 Credit Card Tips to Use it Correctly

Credit cards are increasingly used to cover our daily purchases, practically all of us have at least one…but do you know the basic rules when it comes to obtaining a card of this type?

Here we give you 7 recommendations to choose the most suitable one and use it correctly.

1. Annual Fee

Is the amount the bank charges annually to lend you the money you have. It includes all the elements that are involved in serving the card user – processing, providing security, monthly alerts, etc..

The basic rule is – lower the fee, lower is the cost of the card.

2. Compare Your Paycheck Against Your Credit Limit

The Credit Limit is the maximum amount you can use to purchase and/or purchase services. This amount varies from person to person and card to card, and is granted according to a bank’s analysis of the history, work, salary of the person applying for the card, among others. Every time you make a purchase using the card, the money available on this line of credit decreases and when you pay down the principal or reduce the debt, you get the line of credit back.

It is recommend that you cap the limit to 60-70% of your monthly income and one more than 4 months of your salary.

3. Benefits

That’s right, everyone wants to live the goodness of the famous reward points. One of the factors that can tip the balance on one card or another is the benefits. These may include airline travel miles, special annuity pricing, sweepstakes, event tickets, pre-sales, points to purchase items and vacations, night sales, permanent discounts, sports benefits, partnerships, self-service, among others. It should be noted that while the benefits add to the attractiveness of the card, they may also involve a higher annual cost. Don’t get hooked on a card that offers you points redeemable for things you don’t use, be realistic. If you don’t travel often on the same airline, chances are you’re not going to do it for plastic either.

So don’t get hooked on a card that offers you points redeemable for things you don’t use.

4. No Interest Months

The Monthly Interest Free payment method allows you to purchase products and/or services at a similar price as if you were buying them in cash (paying the payment in a single amount), but with the possibility of deferring their cost within a certain period of time (6, 12, 18 months). This is much better than fixed payments (or credit scheme), because if you pay on time, it frees you from the monthly interest that the bank charges for the financing (interest rate).

However, keep in mind that if you don’t manage your expenses well, months without interest can upset your finances. It is recommended that you project the monthly payment of the purchase together with other financial commitments, to define if it is possible to cover all your expenses. It also suggested that you consider buying after the cut-off date to obtain up to 50 days of financing to start paying.

If you don’t manage your expenses well, months without interest can unbalance your finances.

5. Minimum Payment

When you use your credit card, you are using money borrowed from the bank. That’s why, month after month, the bank (the card issuer) sets a minimum amount you must pay to keep your credit current. If you don’t pay it, you will be charged interest on late payments and you will have a negative credit history, which will lower your chances of getting any type of credit in the future. Paying this minimum amount keeps your credit active, but it’s also a strategy that will only get you deeper into debt. Why? By making full payment, you are avoiding not only your debt, but also the interest. But if you only pay the minimum balance, you have to pay interest on the remaining balance, that is, you are not reducing your debt but increasing it. So remember the following:

“If you pay only the minimum balance, you will go into maximum debt”

6. Prepare Your Account Statements

Credit cards have a cut-off date, which is the last day of the period charged per month. After this day, all purchases you make will go into the next monthly payment and so on. It is important that you have your statements in order because they contain information such as the minimum payment, the payment deadline, the non-interest bearing payment, the credit limit, interest and your balance (total amount you owe the bank), all of which will allow you to see how much you have spent, how much money you need to pay off your debts and whether it is healthy for your finances to continue using your card.

Know if it’s healthy for your finances to keep using your card.

7. Build Credit History

If you handle all your finances in cash, you’re not building a credit history and it will be harder to get a credit card or credit itself, which can help you cover big expenses like buying a house or car. The credit history will help you get more credit, it’s a way for the bank to prove that you’re responsible enough for paying off your debts. So the better your credit history is, the more credit you can receive. If you’re young and have never had credit, you can get cards against fixed deposit which will help in building your credit history.

A good credit history will help you get more credit.

7 Ways to Make Payment When You Don’t have Credit/Debit Card

Nowadays, more and more purchases are made on the Internet with credit card being the most commonly used payment option because of convenience, cashback, rewards points, etc. It is a simplest and fastest shopping experience that allows you to find and buy almost anything in a few clicks of mouse instead of travelling miles in search of a particular item. But while online shopping is becoming more common, card scams and theft have also increased. However the free credit an individual gets on using credit card makes it a preferred choice for making payment.

But buyers have become cautious while giving their credit card number. So to safeguard your money, there are alternate ways to pay on the internet without a credit card as follows:

1. Amazon Pay Balance

The world’s largest e-commerce site Amazon has launched a new method for making payments over the Internet that does not require users to use their credit card.

Simply credit your Amazon account by adding money. Deposits are limited per day, but for larger purchases, you only need to make a few deposits in advance. The payments are made faster and there is no need to enter OTP or bank’s login credentials. And moreover, if you return any product, refunds are credited back into your Amazon Pay Balance within 24 hours.

In either case, this system is very promising.

2. Pay by cheque or cash on delivery

People are still very attached to the small piece of financial paper. They can pay by cheque or cash on some merchant sites.

The order is then validated only once the check received at the physical address of the site. This requires a little more commitment to a safer operation.

3. Bank transfers

As for the use of the cheque, you can finalize your purchase on the internet by sending a bank transfer to the merchant site. To do so, connect to your bank interface or go to your bank. The transfer of funds is fast. Once the funds are received, your order is taken into account.

Bank transfers are ideal for relatively large amounts, as banks sometimes charge a fixed fee.

4. Virtual Bank Card

More and more banks now offer you a virtual bank card.

You then have a code generator linked to your bank and each code is for single use. You no longer need a credit card to register on the internet and thieves just have to be careful!

5. Gift Card

A perfect option to exchange real money for virtual money.

Gift cards are sold by merchants with varying monetary value and each card is associated with a unique number. So you can buy anything and pay via gift card by entering the unique code. And the card becomes invalid once the amount in the card becomes zero.

You can use several cards to make a purchase or keep what was not used for a later purchase.

 

6. Mobile Wallets

Many online sellers also accept payments made through third party mobile wallets. It is similar to Amazon Pay Balance i.e. you need to add funds to the wallet and while making payment, the sellers website allows you to redirect you to wallet site and money is debited from your wallet balance. No need of entering OTP etc.

7. PayPal

Finally, the PayPal payment system remains the most successful today across the world.

If you receive funds on the internet, you can use PayPal virtual wallet to buy without ever making the link with your bank. After creating an account on the site, you credit it with the desired amount through your bank account. The sum is available within 1 to 2 days. Then, each transaction is done without your credit card. The freedom is yours.

Stop Buying These 15 Products, If You Don’t Want to Waste Money

Nobody wants to waste money but still we buy things we don’t always think about or are not always required. These things can be a terrible waste of money.

Here is the list of 15 products you should stop buying and save money.

Lottery

Many people buy lottery everyday in the hope that they will win the prize, but gambling actually stops you from having more money. You’ll probably lose money if you buy lottery and there’s no guarantee you’ll win. In fact, the winning percentage is almost zero.

Cigars

A person who smokes one pack of cigarettes a day spends minimum Rs. 250 depending on the brand. Some even costs more than Rs. 300. In addition, the cost of smoking to your health is incalculable because of the health risks involved.

Water Bottles

If you live in a city where tap water is hygienic and drinkable, don’t buy bottles. If you can get access to something for free, why to pay for it?

Brand name drugs

Normally when two products are exactly alike consumers would opt for the cheaper version. This is not the case with brand-name drugs, which consistently outsell their generic counterparts, despite having the same ingredients and effects. Save some money and buy the generic medicines available at low cost.

Food and drink at the movie theatre

Cinemas don’t make a profit only on tickets, but they also make a profit on food sales. The high price of popcorn and candy is a scam, as you can buy the same products in a supermarket for much less.

Coffee to go or in coffee shops

Before they put a Starbucks on every corner, people made their own coffee at home. This is still popular, but the coffee shops have taken over much of the business. With the high prices and long queues it is surprising that people don’t make their own coffee at home.

Books

Libraries are the best way to save money. The libraries are free and hold millions of books, DVDs and other things you can borrow. If required you can also buy second hand books instead of new one, if at all it meets your educational requirement.

CDs and DVDs

CDs and DVDs are becoming obsolete, but still many people still invest money in albums and movies. Like books, you can rent CDs and DVDs in your library. But now most people enjoy entertainment in streaming using apps like Spotify, Amazon Prime and Netflix for a lower monthly cost than the price of a single CD.

Cable Television

Like music and movies, television is moving from more traditional forms to online streaming. Streaming also has the extra advantage of not having ads and being able to consume it whenever you want.

Gift Cards

Gift cards aren’t as good a gift as you think they are. At least one in three gift cards are never used. And those who use them tend to spend 20% more than the amount the card came with, according to Investopedia. Avoid losses and buy something more personalized next time.

Gymnasiums

Gym memberships can be expensive, so if you don’t visit regularly you’re wasting your money. Fortunately, there are ways to be healthy and exercise outside of a gym, as well.

Premium or Speed Petrol

The basic version is sufficient. For most cars, there’s no need to spend more to get premium gas. The extra cost isn’t worth it, so save money on refueling and fill your car or bike with low cost gas.

Latest Technology Products

When a state-of-the-art device arrives on the market, it lowers the price of previous versions. The old and new versions are probably very similar, and the newer version probably still has some adjustments to make. Save a lot of money by opting for the older product that has almost identical features.

Gaming Integrated Shopping

Those games you’ve got on your smartphone have to get money from somewhere. It turns out that these games are very addictive and are designed with psychological tricks so that you spend whatever money it takes to get to the next level.

Express Shipments

Online stores can make a lot of money by charging their customers high fees for express delivery. Although the basic option may take longer, the savings are worthwhile, if you do not want something on a priority basis.

Are Credit Cards Good or Bad? Advantages & 5 Reasons to Have One

Are Credit Cards Good Or Bad? There is no better way to start this post than with the big debate – whether credit cards are good or bad. We have all heard of people who never have a card’, and others who have done wonders with them. Here we will cover its various aspects.

In any case, having a credit card is always recommended, as long as you know how to use them. In short, if you are irresponsible with them and only use them to get into debt, they will obviously affect you. But if you know how to use them, you’ll get a lot of benefits.

How Do Credit Cards Work?

Credit cards can open many doors for you…literally and figuratively. These are financial products that allow us to get money from the card issuing bank to make purchases, pay bills, etc. The process is something like this:

  • The user uses his card to make a purchase. The bank guarantees that it lends you that money and pays the store or shop.
  • After the cut-off date, the bank makes the sum spent on the card and asks the user for payment.
  • If the user pays everything on time, it doesn’t cost them an extra penny. But if he is late in paying, interest is charged. Meaning that if you don’t repay the bank on time, you will pay them more than you spent. And this is the main reason credit card business is profitable for banks.

Why Use Them? 5 Reasons To Use Credit Cards

If you’re irresponsible about using the card, it can get very bad, financially. But if you do it right, you can have many benefits.

Here are some reasons to use it in a right way:

  • You learn to control yourself and manage your money professionally:
    As strange as it may sound, a card can help you become more managed because you have a clearer record of your spending, and you can set a cap and keep a track of payment dates. That is, you force yourself to keep your money in mind.
  • Build credit history:
    Using a card correctly can improve your credit history a lot. And having a good score helps in getting you bigger credit (like buying a car or buying a home) giving you a better life.
  • Months without Interest Promotions:
    We’ve already talked a little bit about the benefits and the risks. But if you use it correctly, it can help you to buy big things without spending money from your pocket initially.
  • Security, no carrying cash:
    You may think that having a card is dangerous because it can be cloned and although it is still true, it is becoming less and less common. In fact, it is safer for us to walk around with plastic (which can be cancelled with a phone call) than to carry cash and lose it.
  • Points and Rewards:
    One of the benefits is that almost all cards have loyalty programs that give you rewards on items, electronic gadgets, travel or fuel. So if you use it well, you’ll get rewards.

Tips on Using Credit Cards

If you’ve already decided to use them regularly, here’s how to do it properly.

  • Don’t use it to buy things that “you can’t afford right now”. They are not an extension of your paycheck.
  • Don’t delay monthly repayments. Because if you only pay the minimum balance, you can go into debt to the maximum. So always pay your bill in full and on time.
  • Use it to pay for things you already have saved. This way your card serves only as a payment method and a tool to improve your finances.
  • Use up to 60% – 70% of your credit line, no more. This will look better to the credit institutions. We remind you that this is one of the recommendations to improve your credit history.
  • Try to keep your debt below 30% of your salary. This is a traditional advice derived from the rule of 28/36 which states that a household should spend maximum 28% of its gross monthly income on total housing expenses and no more than 36% on debts such as loans or credit card payments.
  • If you want to use the cards as a financial ninja, we remind you that the perfect formula is to have two credit cards.

Now you know the advantages of using credit cards, just make sure that if you are going to use it, do it well with all the above mentioned tips. And if at first you struggle to control your spending impulses, you can always freeze it.