Use Cash/debit card. Never get a credit card. Its the biggest pain. Every swipe is a personal loan. Why take so many personal loans and waste your time in paying back. Instead use cash/debit card.
Re: Use of Cash n Card
by Jojo JKB on Dec 10, 2010 11:36 AM
mr kaza rao - you are sadly mistaken. if a credit card is used wisely it is the best boon. it is just taht people use the credit card and do not pay the monies in time - that's it. if you plan your expenses / paymet of the credit card - you are surely in a win win situation.
Re: Re: Use of Cash n Card
by AGARWALS on Dec 21, 2010 03:05 PM
To Every one Credit card is a boon if you read the fine print(terms and condition) and follow them.Some times you get a credit of 45 days without any charge(cycle of payment)
Re: Re: Re: Use of Cash n Card
by Venkataswamy Chinthalapudi on Jan 02, 2011 09:47 AM
Credit card is a need now a days for a credit limit of 2 to 3 times monthly salary to enable online bookings and a helping hand in need. Normally one should not exceed 35% to 45% of credit limit in shopping. In case of emergency, you may use upto 95% limit with a specific repayment plan. Never exceed your credit limit since it will be hell.
Although there is pre-payment penalty in loan closure in State bank of india too, but they charge interest on reducing balance basis. for example if you have paid half of the outstanding amount, they charge interest only on what is left. So that thing of EMIs with more interest and less preincipal doesn't apply to all the banks. yeah, be careful while dealing with private banks. they charge u like anything. i've been a customer of SBI for many years and u can always trust them for transparency and truth.
It is written that do not close loan. In fact if you have money then it is advisable that you repay principle amount in the first half of the tenure since during that time the interest is high. So later you will end up in paying less interest due to less principle. Its that simple
It is true that nowadays few credit card companys do offer 2% cash back on fuel or 5 points added to your account on every 100 rupee purchase etc. But there is a flip side. These companys also penalise high percentage on not paying back on time. So, it makes sense to repay your bills as soon as as you get your salary and not wait till the 12th hour. What if you fall sick on 15th? Why would you spend dollar in the greed of earning pennys?
Author is misleading readers on repaying loans. Just few months back I repayed full amount of my home loan to HDFC. They did not charge a single rupee for fore-closure. So, please do not post such articles which are not true.
Re: Some points are not true
by anand kumar on Dec 09, 2010 06:25 PM
Once you end up having a credit card, the following problems starts
1. Unwanted calls from these companies for personal loans at very high interest rates and the call center guy will mislead you completely. 2. You end up not paying full bills for some reason or the other. 3. You end up buying more than what you want.
So, better surrender all your credit cards and start spending money what you have.
IT IS A ONLY ONE WORD TO BE FOLLOWED NO NEED THERE ARE 5 WORDS TO CAUSE MISUSE OF MONEY,THAT IS TO BE STRAIGHT FORWARD AT NEITHER UPWARD NOR DOWNWARD ECONOMIC TRANSACTION AT MOST,FOR EXAMPLE WHICH ONE TRANSECTION HAS AS FAST AS FLEXIBALE THE MOMENT IN RETURN OF BREAD & STOCKS, THERE COULD BE ANY ONE FINANCIAL POLICY
This author must be the dumbest financial adviser to be born. Even if one pays 5% on the loan outstanding it still beats paying 8-10% interest continuously over a period of 15-20 years. Also, PSU banks do not charge a single paisa for pre closure of loan as long as the loan is not being taken over by another bank. Rediff please do not post such articles. There are many people out there who do not know how to handle their own money.
Re: closure of loan
by SK AGGARWAL on Dec 14, 2010 10:04 AM
an excellent review. Money management is done by everybody but wise management is not everybody`s cup of tea. That is how/why the need arises for engaging some investment consultants like me.
