As a credit card user, paying the bill is an obligation to do so. Do you know why many people are trapped by huge credit card bills? It’s simple because they don’t know how to manage their credit card spending.
Having a credit card is not a bad thing, but of course, you have to have discipline and commitment. For this, you will need the skills to manage your credit card usage and billing to avoid things like the ones described above.
Here are ways to investigate credit card usage
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Make Financial Planning
If you do not have automatic financial planning, the use of credit cards cannot be controlled. You’ll use a credit card for less-than-useful purposes. One of the causes of excessive use of credit cards is the lack of sound financial planning. In this financial planning, you can determine how much you can afford to pay each month.
So before you use a credit card, first determine the amount of your bill in a month. For example, suppose you set a monthly charge of $ 250 as well for the next month. You won’t be able to use your credit card on a monthly basis by exceeding your ability to pay.
Don’t Hold Payment
There is a common mistake we often make with credit card payments, which is to delay. Things like this should be avoided and instead, credit card payments should be a top priority in your spending record.
For example, suppose you receive a payday on the 25th, then pay your bills as soon as you pay, even if you have a late payment and you have not yet received your billing details. It is intended that you do not have to delay making payments and even accumulate debt.
Pay Using an Auto debit
Auto debit is a bank-based facility for automatic payments that you can use to control your credit card bills. With this auto-debit facility, your charges are automatically deducted so you won’t forget to pay your credit card bills.
Pay Installment at Minimum Cost
When paying a bill, some of your payments are allocated to pay interest. Credit cards typically provide payment terms with a minimum charge rate of 10% of total charges. We recommend that you pay the bill above the minimum charge. This is aimed at avoiding higher charges.
You should also keep an eye on the due date of your bill, and pay the remaining amount before the due date so that you are not subject to late payment penalties. Also, keep in mind the maximum credit line listed on the card. Don’t let your consumption exceed your limits.
Set a Credit Card Limit
When you apply for a credit card, choose a type of credit card that is within your limits. Usually, the bank will also extend the credit card limit according to the financial ability of the customer.
Avoid taking credit cards with too high a limit on your monthly income, as it can be a problem when your paycheck isn’t enough to cover the charge. Accumulating credit card bills is a consequence of poor financial planning. If you are someone who doesn’t know how to investigate and control your credit card usage, you can do the tips above.
There are many benefits if you always pay off your credit card bills, one of your credibility is in the interest of the bank, as your credit card payment history can be a bank reference, to provide you with other credit facilities such as: Mortgage, Vehicle credit, and business credit and something else.