Guys, Here is what I do. I buy most of my things on the credit card. But this what I do before I do it. I check out whether I can pay for it in my next billing cycle. Do I have enough cash in my account so that I can pay for it. I base my buying decisions on these. And again be very careful of the billing cycle. Know when it comes and base ur purchase on that. The advantages are many fold 1. You earn points on the card which you can redeem later. 2. The money in ur bank earns interest which is good. And it comes in handy. But u must have some financial prudence to be careful otherwise you wouldnt be able to pay the credit card off
I am surprised that the member gets tempted to use card to buy things which he cannot afford or required. Truely weak hearted and now he should use card to get heart transplant.
But again imagine a situation where you go out on dating with your girlfriend and when the bill comes you realise you've run out of cash. Imagine being stranded on a new place with all belongings stolen, where you just do not have enough balance in your account to make it home safely. I feel one credit card is a must for emergency if not luxury purpose. But at the same time the pesturing of the banks over the credit card is intolerable. If people know how to use things safely, under control and restraint, credit card can be your friend in need !!
I met few of credit card executive and they have admitted that there employee uses credit card prior to delivery and then re-pack and send to customers. if you experience this, i believe u wont wonder at all. hahaha.
Yes!!! I agree with Amit, Credit Card is Really of Great Help, I would go ahead and say that if the payment is not made within the Due date we would have to pay an interest and a service charge which according to me is fine but again it depends on the situation. Like an Medical Emergence, It would be a Matter of Life and Death and you are totally out of cash, Insted of asking Money with your Family or Friends and wasting the time you can use the Credit Card after all MONEY is not bigger that LIFE.
Credit card is a powerful tool provided ,like any other tool, the user knows how to use it to his/her advantage. In todays context insurance premiums can be paid by credit card. one can even give a credit card mandate for renewal premiums. Now one i get a credit of 40-45 days. two i also get reward points, three i dont forget the due dates, fourth somebody else does my accountants job as i get a monthly statement so i would know what bills have been paid and what have not been paid. I have a particular card exclusively for petrol. i get a consolidated statement month on month. i actually know how much i am spending on petrol. This card has a waiver of annual fees and petrol surcharges waived. Also one could plan for a separate business and personal card to manage the expenses distinctly
A debit card is a good solution that would work in between owning a credit card and paying cash all the time.
Moct of the backs offer ATM-cum-debit cards free of cost along with thier savings account and also there is no risk of overspending because you can only spend as much as your savings in your bank account.
Also most of the merchant establishments that accept a credit card also accept a debit card, so the inconvenience of cash payments is ruled out . Since there is an upper limit attached here, it also puts a check on impulse buying based on the mere ownership of the credit card.
I think it's the best solution that gives all the benefits of a credit card without having to bother the risks attached with the credit card like late payments, excessive credit , overspending etc.
It is highly imperative that one practice restraint while using a card. You'd never know when you have reached your limit. I personally prefer to keep not more than two cards each with a low limit. This helps not only in the budgeting but hedge my risk if I loose it.
What BS aticle this is. Shame on Rediff! Other than the '51-day free loan' and cash back funda, nothing works FOR us. If you can't pay through cash, go to an machine and get some. USE C-CARDS ONLY IF YOU HAVE ENOUGH FUNDS TO REPAY THE ENTIRE BALANCE WITHIN THE GRACE PERIOD. Else, you will end up paying 36% interest and service tax on it. If you miss a payment, pay 300 as penalty + other taxes.
As a disciplined card user, I find it very useful. And I do not pay much interest as well to the card company as I make it a point to make the payment within the time, quite often. Rajendran
