Credit cards have come with numerous benefits in terms of convenience and security. Most people prefer using credit cards when buying what they need to improve the quality of their lifestyle. However, some of them fail to know that improper use of credit cards can lead them to serious credit card debts. Overwhelming credit card debts are some of the extremely difficult debts to pay. If you are not careful on how you use your credit cards, it would not be easy to stop debt collector calls that leave the rest of your day spoilt. Here is what you ought to do to avoid credit card debts.
Avoid balance transfers
Balance transfers should not be transferred to other credit cards based on feelings. The reasons behind balance transfer should be profound and sensible. Transferring a balance to a different credit card should only happen amid good reasons such as when there is an opportunity to lower interest rate. Every balance transfer attracts certain amount of fees and accumulation of such fees and balances may land you into devastating debts. Being quick to make any credit card balance transfer is something people with credit cards should avoid being tempted to do.
Keep an emergency fund
Having some cash in your wallet is a good thing especially if you usually have certain needs to meet. Assuming that it’s convenient paying for everything using your credit card is a great misconception you need to fight and overcome. For instance, you shouldn’t always depend on your credit card to meet expenses such as paying for medical expenses, car repairs, buying school items for your kids, or even repairing your plumbing system and home appliances. Having some money set aside to meet such emergencies would minimize chances of transferring balances to the credit card.
Shun cash advances
One of the poorest ways of using your credit cards is by taking cash advances. Using your credit card to get some cash indicates that something with your finances is terribly wrong. Depending on cash advances to meet most of your needs indicates that you are on your early stages of accumulating credit card debts. Besides coming up with an emergency fund, one should also create a budget to monitor expenditure. If you have read any of the debt success stories, you may have learned that using cash advances to meet your emergencies is the last thing one should contemplate doing.
Know the terms of your credit card
Before you receive a credit card in your pocket upon application, there are terms and conditions you should abide with. One should not only read the agreement, but also fully understand it to avoid future misfortunes. The agreement illustrates when the interest rate increases, when you are likely to be charged a fee as well as how and when interest would be applied to your credit card. With the understanding that credit card use costs more, one should be very sensitive and careful on how they use them. This greatly helps you to avoid unnecessary debts and even stop debt collector calls.
What the above points highlight is that one can decide to get into a credit card debt or not. The way you use your credit card may determine whether you will become a debt culprit of not. If you end up buying everything using your credit card, you may not be able to stop debt collector calls in the future. For additional details visit https://www.debtmediators.com.au/