Advertiser Disclosure

When Should I Not Use A Credit Card

When Should I Not Use A Credit Card Credit Cards

Credit card companies offer users the benefit of making purchases while actually paying for them later. However, while the offers made by credit card companies might actually sound very appealing, you must be aware that credit cards have their stated benefits only when used with great care and sensibility. Indiscriminate spending beyond one’s means is a sure no as are delayed or defaulted payments.

There are some situations when investment advisors strongly advice against the use of credit cards. Here are a few reasons why they do so.

If you are struggling to meet your monthly expenses, do not use your credit card just because your cash position is low or it is hard to make ends meet at the end of a month. Spending what you do not have will only run you into deeper debt, not to mention the interest that would have to be paid.

If you know that you cannot pay the credit card balance in full or you are only able to make the minimum required monthly payments, it may not be a wise idea to use your credit card. When you do this, the amount payable month on month may increase exponentially, not to mention the interest that will be levied on an ever-increasing amount every month.

When you limit yourself to us spending a debit card, you cannot money that you do not already have. This would be a far safer option for those who have a tendency to be indiscriminate in their credit card spends.

Some card companies offer you very low credit limits and the fees levied for spending beyond your credit limit can be really steep, often being more than what you actually purchased. Also if you keep spending beyond your credit limit, your overall credit rating might drop, which in turn will negatively impact your credit standing when you seek some other kind of loan or financial assistance. When used responsibly, there are benefits to using credit cards, but before you do that, if you lack the discipline in managing your spends and paying on time, it would be wiser to avoid using credit cards.

2314 VIEWS
Finance

Important tips on Public Service Loan Forgiveness

If you get a student loan forgiveness, then you can end up saving on thousands of dollars from student loans. If you take up a job in public service, then you may qualify for a Public Service Loan Forgiveness. Here are some important tips you need to...
1589 VIEWS
Finance

Facts About Long Term Group Disability Insurance

Full-time employees are provided group disability insurance by their employer that generally covers 60% of the gross income earned by the employee before the occurrence of disability, or to a specific maximum amount like $10,000 per month, or any pre...
2292 VIEWS
Forex

Best Forex Trading Strategies

Forex is a short form of foreign exchange. It is a decentralized market of currency exchange. There are no special efforts required to be a part of this exchange, for example, if you have ever been to another country and have exchanged currency fo...
1974 VIEWS