22/01/2016
Insight 5 #
BEFORE SWIPING YOUR CREDIT CARD ...KEEP THE FOLLOWING IN MIND....& .. AVOID THE DEBT TRAP
During the vacation period or moving out with family Visiting Shopping areas has started items are bought even if not required immediately or even if we are short of money we go ahead & just swipe it. ALL THANKS TO PLASTIC MONEY.
In CREDIT CARD the credit period ranging from 30-45 days affords a sense of comfort which can often lead to
overspending.Many People just Swipe & forget it leading to a Debt Trap.
BEAR IN MIND THE FOLLOWING WHILST YOU SWIPE YOUR CARD.
Never Settle Your Payment Due on Your Card with MINIMUM AMOUNT DUE that is a Trap where in you will pay The Minimum Amount & The Bank will start Charging Interest On The Balance Due. You Can Pay The Minimum 5 %, & the rest will attract interest on the balance amount being a hefty 39-45% per annum. THEREFORE CLEAR YOUR OUTSTANDING ON THE CREDIT CARD AT THE EARLIEST & AVOID FALLING IN THE TRAP.
WITHDRAW FROM THE ATM USING THE CREDIT CARD ONLY IF THERE IS AN EMERGENCY ELSE NOT BECAUSE YOU WILL HAVE TO PAY CHARGES, & INTEREST MINIMUM 2.5% PER MONTH OF THE WITHDRAWN AMOUNT. THIS INTEREST STARTS IMMEDIATELY ON WITHDRAWL & NOT AT THE END OF FREE CREDIT PERIOD ON THE CREDIT CARD.
CO BRANDED OR LOYALTY CARDS :-
If you have ever visited malls and supermarkets, chances are that you have been offered a ‘membership’ or ‘loyalty’ cards a number of times. The store staff often cajole you into signing up for one – after all, there’s nothing to lose, and scores of points to be gained on every purchase made that will entitle you to discounts. Most of them score high on utility, no doubt, particularly if you shop there often. However, you need to be wary of cards that insist on you using them for spending – these could be co-branded credit cards that carry at least an annual maintenance charge, if not an enrollment fee.
Importance Of A No-Due Certificate:
ONCE YOU REPAY YOUR OUTSTANDING KINDLY ASK FOR NO DUE CERTIFICATE.
One of the most common pieces of advice doled out to borrowers, especially to those who close their loans under a compromise settlement with lenders, is to insist on a no-due certificate. It holds the key to the approval of your loan applications in the future. While the settlement may spare you reminder or follow-up calls from bank, it is only the no-dues certificate that will back your claim of having a clean slate.
Along with this, make sure your bank gives you an assurance that the settlement will be intimated to the credit information companies so that your credit record is updated accordingly. If, anytime in the future, your loan request is turned down because of an unfavourable credit history,youcanpro-ducethedocumentsasproofsofcomplete repayment.
SO KINLDY BEAR IN MIND BEFORE SWIPING YOUR CREDIT CARD.
